Albany International reports sales fall of 2.3% in Q2
August 06, 2014 - United States Of America
US-based and NYSE listed - Albany International, a global advanced textiles and materials processing company posted a 2.3% year-on-year drop in net sales to $193.5 million in the second quarter of 2014.
Adjusted EBITDA for the period under review stood at $37.3 million, compared to $36.1 million in the corresponding quarter of 2013.
In the second quarter of 2014, income attributable to Albany was $0.35 per share. Earnings were reduced by restructuring charges of $0.04 and income tax adjustments of $0.03, and were increased by an insurance-recovery gain of $0.03 and foreign currency revaluation gains of $0.02.
While in the comparable second quarter of 2013, income attributable to Albany was a loss of $0.23 per share. Earnings were reduced by restructuring charges of $0.47, foreign currency revaluation losses of $0.03, income tax adjustments of $0.05, and a loss from discontinued operations of $0.01.
Net debt declined $15.8 million during the quarter to $78.2 million.
Gross profit amounted to $75.3 million, or 38.9 percent of net sales, compared to $77.4 million, or 39.1 percent of net sales, in the same period of 2013.
Gross profit margin from Machine Clothing (MC) division declined from 43.8 percent in 2013 to 42.4 percent in 2014 principally due to the $1.6 million charge for the inventory valuation correction.
Gross profit margin at Albany Engineered Composite (AEC) division leapt from 3.3 percent in the second quarter of 2013 to 11.4 percent in the second quarter of 2014, due to improvements in profitability of programs at the Albany’s Texas, facility.
Albany attributed the year-over-year decline in second-quarter 2014 MC division sales to North America, where sales were particularly strong in same quarter of 2013. However, compared to the first quarter of 2014 and second-half of 2013, North American sales improved.
Sales in the rest of the world remained stable in the quarter under review and were at levels comparable to those achieved in second quarter of 2013. AEC division sales rebounded from the transitional effects of the change in LEAP invoicing terms.
Selling, technical, general, and research (STG&R) expenses were $54.4 million, or 28.1 percent of net sales, in the second quarter of 2014, including losses of $0.4 million related to the revaluation of nonfunctional-currency assets and liabilities.
In the corresponding quarter of 2013, STG&R expenses were $56.6 million, or 28.6 percent of net sales, including income of $0.5 million related to the revaluation of nonfunctional-currency assets and liabilities.
Q2 2013 STG&R expenses also included $1.0 million of corporate charges for increased legal expenses and accrual adjustments for the Company’s self-insured medical program.
Adjusted EBITDA for the period under review stood at $37.3 million, compared to $36.1 million in the corresponding quarter of 2013.
In the second quarter of 2014, income attributable to Albany was $0.35 per share. Earnings were reduced by restructuring charges of $0.04 and income tax adjustments of $0.03, and were increased by an insurance-recovery gain of $0.03 and foreign currency revaluation gains of $0.02.
While in the comparable second quarter of 2013, income attributable to Albany was a loss of $0.23 per share. Earnings were reduced by restructuring charges of $0.47, foreign currency revaluation losses of $0.03, income tax adjustments of $0.05, and a loss from discontinued operations of $0.01.
Net debt declined $15.8 million during the quarter to $78.2 million.
Gross profit amounted to $75.3 million, or 38.9 percent of net sales, compared to $77.4 million, or 39.1 percent of net sales, in the same period of 2013.
Gross profit margin from Machine Clothing (MC) division declined from 43.8 percent in 2013 to 42.4 percent in 2014 principally due to the $1.6 million charge for the inventory valuation correction.
Gross profit margin at Albany Engineered Composite (AEC) division leapt from 3.3 percent in the second quarter of 2013 to 11.4 percent in the second quarter of 2014, due to improvements in profitability of programs at the Albany’s Texas, facility.
Albany attributed the year-over-year decline in second-quarter 2014 MC division sales to North America, where sales were particularly strong in same quarter of 2013. However, compared to the first quarter of 2014 and second-half of 2013, North American sales improved.
Sales in the rest of the world remained stable in the quarter under review and were at levels comparable to those achieved in second quarter of 2013. AEC division sales rebounded from the transitional effects of the change in LEAP invoicing terms.
Selling, technical, general, and research (STG&R) expenses were $54.4 million, or 28.1 percent of net sales, in the second quarter of 2014, including losses of $0.4 million related to the revaluation of nonfunctional-currency assets and liabilities.
In the corresponding quarter of 2013, STG&R expenses were $56.6 million, or 28.6 percent of net sales, including income of $0.5 million related to the revaluation of nonfunctional-currency assets and liabilities.
Q2 2013 STG&R expenses also included $1.0 million of corporate charges for increased legal expenses and accrual adjustments for the Company’s self-insured medical program.