Home / Knowledge / News / Textiles / Xerium clothing segment sales decline in Q1
Xerium clothing segment sales decline in Q1
11
May '09
Xerium Technologies Inc, a leading global manufacturer of industrial textiles and rolls used primarily in the paper production process, reported results for its first quarter ended March 31, 2009.

“As expected, the first quarter of 2009 became a very challenging quarter for Xerium and for our industry,” said Stephen R. Light, President, Chief Executive Officer and Chairman. “The dramatic downturn in the paper markets is reshaping the industry's landscape, underscoring the foresight of our preemptive moves taken in 2008 to aggressively reduce debt and re-align our operations consistent with our three step strategy. We are working with our customers to reduce our lead times and better manage inventories. Simultaneously, we continue to streamline our products and take a leadership role in delivering the innovations necessary to spur additional cost savings and bring greater value to paper processing.

“We are realistic about the many challenges we face during the deep downturn in our industry. Our financial planning reflects our belief that the bottom of this market will not occur until mid-2009, followed by a recovery that builds momentum by mid-2010. Our strategy for debt reduction remains paramount and we have continued to believe that we will exit 2009 stronger than when we entered it.”

FIRST QUARTER FINANCIAL HIGHLIGHTS
• During the quarter, the Company made principal long-term debt payments of approximately $21.5 million, which, along with offsetting currency effects, reduced total bank debt at March 31, 2009 to $609.3 million from $617 million at December 31, 2008. The $609.3 million balance includes $28 million borrowed under our line of credit in the first quarter of 2009.
• Net interest expense decreased during the quarter by $9.2 million or 36.5% to $16.0 million, from $25.2 million in the first quarter of 2008. The decrease is primarily due to the change in fair value of interest rate swaps and favorable currency effects, offset by higher interest rates stemming from the amendment of the senior credit facility in May 2008.
• During the first quarter of 2008, hedge accounting under SFAS No. 133, was not applicable for the Company's interest rate swaps in 2008 and the mark to market changes in their fair value of $12 million were recorded as non-cash charges to interest expense. Effective July 1, 2008, hedge accounting under SFAS No. 133 became applicable and the mark to market changes on the interest rate swaps were charged to accumulated other comprehensive income.
• Net sales for the 2009 first quarter were $116.5 million, a 26.7% decrease from net sales for the 2008 first quarter of $159.0 million. Excluding currency effects shown in the table below, first quarter 2009 net sales decreased 18.3% from the first quarter of 2008, with a decline of 16.4% in the clothing segment and a decline of 21.9% in the roll covers segment. See "Clothing Segment Highlights and "Roll Covers Segment Highlights" for further discussion.


Must ReadView All

Courtesy: Ministry of Trade and Industry, Singapore

Textiles | On 22nd Feb 2018

Final version of CPTPP pact released; to be signed in March

The final version of the Comprehensive and Progressive Agreement for...

Amazon India crosses 3 lakh seller base in less than 5 yrs

Apparel/Garments | On 22nd Feb 2018

Amazon India crosses 3 lakh seller base in less than 5 yrs

Amazon recently claimed to have crossed the three-lakh seller base in ...

Indian e-retail market may see 250% growth in 3 yrs: Crisil

Apparel/Garments | On 22nd Feb 2018

Indian e-retail market may see 250% growth in 3 yrs: Crisil

India’s e-retail market may rise by 250 per cent in the next three...

Interviews View All

Subhashini Srinivasan
The S Studio

Ethnicwear market will see an upward trend if uniqueness and quality are...

Top executives
Textile industry

GST has levelled the playing field to an extent

Victor Chao
Esmetex

‘In future, clothing boundary lines will become increasingly blurred.’

Ravindra Jain, Ashish Baid

Oswal Prints Private Limited has been manufacturing and exporting ethnic...

Suresh P Bagrecha

Komal Texfab, founded in 1981, is into manufacturing of knitted fabrics,...

Vikas Banduke

Softech Controls Private Limited (SCPL) is a part of the Cotmac Group, an...

Johan Berlin
InvestKonsult Sweden AB

Investkonsult Sweden AB has been buying and selling second-hand textile...

Larry L Kinn
Suominen Corporation

Larry L Kinn, Senior Vice President - Operations Americas of Suominen...

Eric Scholler
Groz-Beckert

The Indian market has huge potential in technical textiles, and by far,...

Nisha Chanda
Whistling Woods International School of Fashion

<div>A lack of upgraded courses in costume designing and fashion as per...

Aditi Somani
Aditi Somani

Aditi Somani specialises in luxury fusion wear with international cuts and ...

Madhu Jain
Madhu Jain

She grew up in the walled city of Old Delhi, completed her studies, and...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

February 2018

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
70.6%
No
12.7%
Skip
16.7%

Total Votes: 102

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
63.7%
No
29.4%
Skip
6.9%

Total Votes: 102

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
88.2%
No
8.8%
Skip
2.9%

Total Votes: 102

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
83.3%
No
7.8%
Skip
8.8%

Total Votes: 102


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search