Currency translation rates drive down Albany Q2 sales 11%
August 07, 2015 - United States Of America
Changes in currency translation rates, driven mainly by the stronger US dollar, drove down Albany International Corp net sales by 11 per cent year on year in the second quarter of 2015.
Net sales for the three months to June 30, 2015 touched $172.3 million, a decline of 11.0 per cent from the same quarter of previous year.
An Albany press release informed that excluding currency effects, net sales decreased 5.6 per cent or $10.4 million for the second quarter of 2015.
Excluding that effect, MC sales were down 7.1 per cent year over year, principally due to lower sales volume in North America and Europe, reflecting sharp declines in publication grades.
Again by excluding currency translation effects, AEC sales increased 6.9 per cent to $21.7 million in the reporting quarter due to growth in the LEAP program.
For the quarter, Albany reported loss before income tax of $2.5 million, which includes the BR725 charge of $14.0 million, restructuring charges of $1.2 million, and losses of $2.3 million from foreign currency revaluation.
“Including the impact of these items and charges of $0.7 million for income tax adjustments, income attributable to the Company was a loss of $2.2 million,” it added.
As previously announced, the Company recorded a $14.0 million charge or $0.28 per share for a revision in the estimated profitability of a legacy contract in the Albany Engineered Composites segment (AEC).
The long-term contract is for the manufacture of composite components for the Rolls-Royce BR725 engine, which powers the Gulfstream G650 business jet.
As against this, income before income tax in the second quarter of 2014 was $18.4 million, including restructuring charges of $2.0 million, gains of $1.0 million from foreign currency revaluation.
“Including the impact of these items and charges of $0.8 million for income tax adjustments, income attributable to the Company was $11.2 million in the prior year second quarter,” it observed.
Gross profit for the quarter under review was $54.6 million, or 31.7 per cent of net sales, compared to $75.3 million, or 38.9 per cent of net sales, in the same period of 2014.
“The $14.0 million BR725 charge reduced second quarter of 2015 gross profit margin by 8.1 per cent,” Albany explained.
Selling, technical, general, and research (STG&R) expenses reached $50.3 million or 29.2 per cent of net sales as against $54.4 million, or 28.1 per cent of net sales in the corresponding quarter of last year.
“The decline in STG&R, results principally from the effects of changes in currency translation rates and restructuring activities,” it said.
Capital spending amounted to $18.8 million in the reporting period compared to $12.8 million, while depreciation and amortisation was $15.2 million, down from $16.1 million in the prior year second quarter. (AR)
Net sales for the three months to June 30, 2015 touched $172.3 million, a decline of 11.0 per cent from the same quarter of previous year.
An Albany press release informed that excluding currency effects, net sales decreased 5.6 per cent or $10.4 million for the second quarter of 2015.
Excluding that effect, MC sales were down 7.1 per cent year over year, principally due to lower sales volume in North America and Europe, reflecting sharp declines in publication grades.
Again by excluding currency translation effects, AEC sales increased 6.9 per cent to $21.7 million in the reporting quarter due to growth in the LEAP program.
For the quarter, Albany reported loss before income tax of $2.5 million, which includes the BR725 charge of $14.0 million, restructuring charges of $1.2 million, and losses of $2.3 million from foreign currency revaluation.
“Including the impact of these items and charges of $0.7 million for income tax adjustments, income attributable to the Company was a loss of $2.2 million,” it added.
As previously announced, the Company recorded a $14.0 million charge or $0.28 per share for a revision in the estimated profitability of a legacy contract in the Albany Engineered Composites segment (AEC).
The long-term contract is for the manufacture of composite components for the Rolls-Royce BR725 engine, which powers the Gulfstream G650 business jet.
As against this, income before income tax in the second quarter of 2014 was $18.4 million, including restructuring charges of $2.0 million, gains of $1.0 million from foreign currency revaluation.
“Including the impact of these items and charges of $0.8 million for income tax adjustments, income attributable to the Company was $11.2 million in the prior year second quarter,” it observed.
Gross profit for the quarter under review was $54.6 million, or 31.7 per cent of net sales, compared to $75.3 million, or 38.9 per cent of net sales, in the same period of 2014.
“The $14.0 million BR725 charge reduced second quarter of 2015 gross profit margin by 8.1 per cent,” Albany explained.
Selling, technical, general, and research (STG&R) expenses reached $50.3 million or 29.2 per cent of net sales as against $54.4 million, or 28.1 per cent of net sales in the corresponding quarter of last year.
“The decline in STG&R, results principally from the effects of changes in currency translation rates and restructuring activities,” it said.
Capital spending amounted to $18.8 million in the reporting period compared to $12.8 million, while depreciation and amortisation was $15.2 million, down from $16.1 million in the prior year second quarter. (AR)