Sales down 1.6% Xerium Technologies in Q3 2012

Compared to the second quarter of 2012, net sales decreased 1.6%, or 1.0% on a constant currency basis to $134.2 million in the third quarter of 2012. On a constant currency basis, net sales of machine clothing increased 1.4%, representing the second straight quarter of volume growth.

On the same constant currency basis, net sales of roll covers decreased 5.3%. The flow through effect of the sales decline was the primary reason for a 3.9% decrease in Adjusted EBITDA from Q2 to Q3. It declined to $24.4 million in the third quarter of 2012 from $25.4 million in the second quarter of 2012.

Compared to the third quarter of 2011, net sales decreased 9.4%, or 4.4% on a constant currency basis to $134.2 million, primarily as a result of the decline in Europe. Again, the flow-through effect of this sales decline is the primary driver of a 14.7% decrease in Adjusted EBITDA to $24.4 million in the third quarter of 2012 from $28.6 in the third quarter of 2011.

Year to date, net sales decreased 8.3% or 4.3% on a constant currency basis, to $405.0 million from $441.8 million, contributing to a decrease in Adjusted EBITDA of 19.2% to $68.6 million in 2012 from $84.9 million in 2011.

The Company continued its debt reduction program during the quarter with additional net debt retirement of $5.7 million. On a year to date basis, net debt has been paid down $20.6 million and stands at $447.8 million as of September 30, 2012.

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Xerium Technologies Inc.