A Brazilian tax charge, led to NYSE listed, Xerium Technologies, a global provider of technical textile fabrics announcing negative earnings per share in the third quarter of 2014.
According to Xerium, primarily driven by a Brazilian tax charge of $1.56 per share, it posted loss per share of $1.32 in the second quarter of 2014, versus earnings per share of $0.14 in the prior year second quarter.A Brazilian tax charge, led to NYSE listed, Xerium Technologies, a global provider of technical textile fabrics announcing negative earnings per share#
Net sales in the quarter under review expanded by 3.4% to $138.9 million, from $134.2 million in the third quarter of 2013.
“Rolls sales, mechanical services sales and emerging market PMC sales outperformed graphical paper and mature market sales declines,” Xerium said.
Healthy sales growth in North America of 8.7%, Asia of 4.3% and South America of 12.4% contributed to positive growth in the quarter, while sales in Europe declined by 4.9%.
Adjusted EBITDA for the third quarter of 2014 amounted to $31.5 million, up 15% from $27.2 million in corresponding quarter of 2013.
“The year-over-year adjusted EBITDA improvement in constant currency was split roughly 50/50 between sales growth and operating efficiencies,” it explained.
“A rise in sales and operating efficiencies led to $1.3 million and $1.1 million of additional adjusted EBITDA”, Xerium added.
Gross profit touched $55.5 million, or 40.0% of net sales in the third quarter of 2014 against $53.4 million, or 39.5% of net sales in prior year quarter.
Machine Clothing gross margin improved to 40.9% from 40.6% in Q3 2013, and that of roll covers to 38.5% from 37.5%.
Third quarter of 2014 SG&A expenses stood at $34.2 million, or 24.7% of net sales, down from $34.9 million, or 25.8% of net sales from a year earlier quarter.
"Xerium performed well in the quarter, with sales growth globally and significant margin expansion," said Harold Bevis, CEO of Xerium Technologies.
He added, “Xerium is orienting its cost structure more firmly towards low-cost country production, evident from improvement, roughly split equally between sales growth and cost reductions.”
Xerium has nine primary cost programs underway, including plant closures and operational excellence programs directed at waste, quality, productivity, procurement initiatives and a lean SG&A program.
As a result of these efforts, total cost savings for the third quarter of 2014 were $6.9 million, up $0.5 million from previous quarter cost savings for 2014 are estimated to be over $25 million.
In the third quarter, Xerium announced the closure of the Joao Pessoa, Brazil facility and consolidation into two other Xerium plants, the work of which is fully underway.
Xerium Technologies is a global provider of industrial consumable products and services and has 27 manufacturing facilities in12 countries and employs around 3,200 employees. (AR)
Fibre2fashion News Desk - India
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