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Clothing segment sales up at Xerium Technologies
11 Nov '08
5 min read
In order to improve performance, the Company continues to target a reduction in days of receivables and increases in inventory turns and days of payables outstanding. During the 2008 quarter, as compared with the 2007 quarter, the Company reported that accounts receivables, as measured as a ratio of days of receivables, improved from 66 days to 56 days, inventory turns improved to 4.4 versus 3.1, and days of payables were 34 days compared to 36 days. These numbers reflect the $6.0 million of additional provisions for bad debts on trade receivables and $8.0 million additional provisions for slow moving and obsolete inventory that were recorded in the third quarter of 2008.
Capital expenditures during the 2008 quarter were $8.3 million, compared to $8.9 million during the 2007 quarter. Capital expenditures for the nine months ended September 30, 2008 were $29.1 million. The Company expects capital expenditures to be in the range of $44 to $47 million for fiscal 2008. The Company also expects that capital expenditures in 2009 will be significantly lower than those for 2008.
On September 29, 2008, Standard & Poor's raised its ratings on the Company, including raising the long-term corporate credit rating, from 'CCC+' to 'B-'.
The Company released an additional $29.6 million in "trapped cash" during the third quarter, having freed $1.9 million in trapped cash in the second quarter of 2008.
In connection with the Company's amended credit facility, as of September 30, 2008 the weighted average interest rate on its effectively fixed portion of the term loan facility was 9.74%; and the weighted average interest rate on the portion of its term loan facility that is not effectively fixed by interest rate swap contracts, based on the 90-day LIBOR, was 9.64%.
Clothing segment sales increased $0.4 million or 0.4% to $104.4 million from $104.0 million in the year-ago quarter. The current quarter benefited from favorable currency effects of $6.0 million as well as from increased sales in Asia-Pacific. The increase was partially offset by an unfavorable currency impact on pricing, and decreased sales in North America and Europe. Excluding the effects of currency, net sales decreased approximately 2.4%.
Overall pricing levels in the clothing segment decreased approximately 1.5% during the quarter, compared to the prior-year period.
Clothing segment earnings for the quarter increased 42% to $39.5 million for the 2008 quarter, compared to the prior-year quarter driven heavily by the positive effect of the pension and retiree medical program changes we implemented.
Roll covers segment sales increased 10.7% to $54.9 million from $49.6 million in the 2007 quarter. The increase is partially the result of $2.3 million in favorable currency effects from non-U.S. Dollar sales, and sales from our Chinese facilities acquired in the 2007 fourth quarter, and increased roll cover sales in North America.
Overall pricing levels in the roll covers segment decreased by less than 1% in the third quarter, compared to the prior year period.
Roll covers segment earnings for the quarter increased 26.0% to $16.5 million for the 2008 quarter, compared to the prior-year quarter benefiting from the pension and retiree medical program changes we implemented.
Capital expenditures during the 2008 quarter were $8.3 million, compared to $8.9 million during the 2007 quarter. Capital expenditures for the nine months ended September 30, 2008 were $29.1 million. The Company expects capital expenditures to be in the range of $44 to $47 million for fiscal 2008. The Company also expects that capital expenditures in 2009 will be significantly lower than those for 2008.
On September 29, 2008, Standard & Poor's raised its ratings on the Company, including raising the long-term corporate credit rating, from 'CCC+' to 'B-'.
The Company released an additional $29.6 million in "trapped cash" during the third quarter, having freed $1.9 million in trapped cash in the second quarter of 2008.
In connection with the Company's amended credit facility, as of September 30, 2008 the weighted average interest rate on its effectively fixed portion of the term loan facility was 9.74%; and the weighted average interest rate on the portion of its term loan facility that is not effectively fixed by interest rate swap contracts, based on the 90-day LIBOR, was 9.64%.
Clothing segment sales increased $0.4 million or 0.4% to $104.4 million from $104.0 million in the year-ago quarter. The current quarter benefited from favorable currency effects of $6.0 million as well as from increased sales in Asia-Pacific. The increase was partially offset by an unfavorable currency impact on pricing, and decreased sales in North America and Europe. Excluding the effects of currency, net sales decreased approximately 2.4%.
Overall pricing levels in the clothing segment decreased approximately 1.5% during the quarter, compared to the prior-year period.
Clothing segment earnings for the quarter increased 42% to $39.5 million for the 2008 quarter, compared to the prior-year quarter driven heavily by the positive effect of the pension and retiree medical program changes we implemented.
Roll covers segment sales increased 10.7% to $54.9 million from $49.6 million in the 2007 quarter. The increase is partially the result of $2.3 million in favorable currency effects from non-U.S. Dollar sales, and sales from our Chinese facilities acquired in the 2007 fourth quarter, and increased roll cover sales in North America.
Overall pricing levels in the roll covers segment decreased by less than 1% in the third quarter, compared to the prior year period.
Roll covers segment earnings for the quarter increased 26.0% to $16.5 million for the 2008 quarter, compared to the prior-year quarter benefiting from the pension and retiree medical program changes we implemented.
Xerium Technologies Inc
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