Albany International Q4 earnings up on higher sales
27 Jan '06
3 min read
President and CEO, Joe Morone said, "While we are not at all satisfied with the earnings for the quarter, we are encouraged by the strong net sales and cash generation, and the record sales and earnings for the year 2005.
"Fourth-quarter earnings were positively affected by strong sales and negatively affected by lower operating margins in PMC primarily due to increased material costs resulting from higher petroleum prices, price competition in Europe, and expenses associated with the residual effects of previous programs for consolidating manufacturing operations.
President and CEO, Joe Morone continued, "The strong cash flow, and the sales gains in both PMC and the emerging businesses, validate our focus on growth. European PMC pricing will continue to pressure margins through the next few quarters, even as our management team works to promote the Albany Value Concept in our European markets.
"We expect margins to improve gradually later in the year as a number of internal initiatives begin to take hold, but the impact of increased material costs due to higher petroleum prices, which decreased the Company's income during the fourth quarter by $0.11 per share, is expected to continue for the foreseeable future.
"In addition, net sales and operating income are expected to be reduced for the first quarter of 2006 only, by $8 million and $3 million, respectively, due to an anticipated change in inventory practices associated with a major customer."
Albany International is the world's largest producer of paper machine clothing and high-performance doors with manufacturing plants strategically located to serve its global customers.
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