Displaying items by tag: Xerium Technologies

Xerium Technologies, Inc., a leading global manufacturer of industrial textiles and roll covers used primarily in the paper production process, announced today the results of its operations for the quarter and year ended December 31, 2011. For the year ended December 31, 2011, net sales and income from operations increased approximately 7% and 35%, respectively, compared to the year ended December 31, 2010. In addition, net income (loss) per diluted share increased to$0.54 from $(7.29) for the year ended December 31, 2011 compared to 2010.

"During the fourth quarter, the negative headwinds affecting the global paper industry that we saw arise in the middle of the year were exacerbated by the worsening debt crisis in Europeand a return to higher oil prices after their brief respite," said Stephen R. Light, President, Chief Executive Officer and Chairman. "In response to our practice of closely monitoring our customers' behaviors and in particular their PMC and Rolls consumption rates and plans, we shut down much of our production late in the quarter in order not to build inventories above an acceptable level; this resulted in much lower fixed overhead cost absorption. These shutdowns enabled us to reduce inventories while at the same time reducing receivable days outstanding, both of which served to improve our cash position. Pricing and customer ordering patterns for our new products remained in control in spite of the overall demand decline. During the fourth quarter, we completed the Brazilian capacity investment and Australian ramp up we've planned to serve our customers increasing demand for our new press felts. In addition, we received our 200^th order for our patented SmartRoll product, bringing SmartRoll revenue to approximately 7% of our roll cover revenue globally."

FOURTH QUARTER FINANCIAL HIGHLIGHTS

• Net sales for the 2011 fourth quarter were $145.2 million, a 0.4% increase from net sales for the 2010 fourth quarter of $144.6 million. Excluding currency effects of $(0.5) million, fourth quarter 2011 net sales increased 0.8% from the fourth quarter of 2010, with an increase of 4.2% in the clothing business unit and a decrease of (5.1)% in the roll covers business unit. See "Reporting Unit Information" and "Non-GAAP Financial Measures" below for further discussion.
• Gross margins decreased 13.9% to $50.2 million for the fourth quarter of 2011 from$58.3 million for the fourth quarter of 2010. As a percentage of net sales, gross margins declined to 34.6% of net sales for the fourth quarter of 2011 as compared to 40.3% of net sales for the fourth quarter of 2010. These decreases were primarily the result of (1) the unfavorable absorption of production costs in the fourth quarter of 2011 due to our concerted effort to decrease production and reduce inventories, necessitated by a slowdown in customer demand, most dramatically in paper production, where demand in the last eight months of 2011 was lower than 2010; (2) a favorable recovery of inventory reserves in the fourth quarter of 2010 that did not occur in 2011; (3) our inability to offset increased raw material costs, particularly in our roll covers business with productivity or price increases; and (4) strong sales growth in regions and products with lower gross margins.

• The Company's operating expenses (selling, general and administrative, restructuring and impairments and research and development expenses) of $37.5 million for the fourth quarter of 2011 declined by $1.4 million, or 3.6%, from operating expenses of$38.9 million in the fourth quarter of 2010. The decrease in operating expenses during the fourth quarter of 2011 is primarily the net result of the following:
  • A decrease of $3.5 million in general and administrative expense due to a decrease in management incentive compensation and stock compensation from 2010 to 2011; and
  • A decrease in restructuring and impairment expenses of $2.3 million in the fourth quarter of 2011 as compared to the fourth quarter of 2010 as a result of reduced restructuring activity.

  Partially offsetting these items were:

  • An increase of $2.5 million in general and administrative expenses, due to higher bank and legal fees, higher bad debt reserves and an unfavorable property tax assessment in Germany;
  • An increase of $1.3 million in general and administrative expenses due to the absence of a non-recurring gain recognized in 2010 as a result of the sale of land in Brazil; and
  • An increase of $0.6 million in selling expenses, primarily as a result of inflation and additional headcount.

• Interest expense decreased $2.8 million from the fourth quarter of 2010 to the current quarter due to $2.2 million of interest rate swaps amortized in the prior year and $1.2 million lower net interest expense as a result of lower debt balances and interest rates from 2010 to 2011. These decreases were partially offset by $0.5 million higher amortization of deferred financing costs in 2011. The decrease in interest expense and the increase in deferred financing costs were primarily a result of the refinancing in May of 2011.
• The decrease in income tax expense in the fourth quarter of 2011 as compared with the fourth quarter of 2010 was principally due to the impairment of the German deferred tax asset recorded in the fourth quarter of 2010 combined with other changes in tax reserves.
• Net income for the fourth quarter of 2011 was $2.4 million or $0.16 per diluted share, compared to net income of $0.7 million or $0.05 per diluted share for the fourth quarter of 2010. The increase is primarily a result of the items noted above.
• Adjusted EBITDA (as defined by the Company's credit facility) decreased 35.7%, or$12.6 million, to $22.7 million in the current quarter from $35.3 million in the fourth quarter of 2010. See "Non-GAAP Financial Measures" below for further discussion.
• Unrestricted and restricted cash at December 31, 2011 was $43.6 million, compared to $43.0 million at September 30, 2011 and $52.4 million at December 31, 2010. The increase in the cash balances from September 30, 2011 is primarily due to cash provided by operating activities of $14.4 million, offset by an increase of $11.2 millionin capital expenditures related to our additional press felt capacity and an increase of$2.4 million in payments on long-term debt. The decrease in the cash balances fromDecember 31, 2010 is primarily due to capital expenditures of $30.2 million, the payment of $17.3 million in debt financing fees in connection with the debt refinancing in May of 2011 and net debt payments of $14.0 million. These decreases were partially offset by cash flow from operations of $45.2 million and proceeds from the disposal of property and equipment of $7.8 million.
• Total debt at December 31, 2011 was $469.1 million, compared to $475.4 million atSeptember 30, 2011 and $481.4 million at December 31, 2010. The decrease of $12.3 million from December 31, 2010 is primarily due to net debt payments of $14.0 millionin 2011, partially offset by unfavorable currency effects of $1.7 million. The decrease of$6.3 million from September 30, 2011 is primarily due to favorable currency effects of$3.9 million and debt payments of $2.4 million in the fourth quarter of 2011.
• Capital expenditures for the year ended December 31, 2011 were $30.2 million, consisting of $12.2 million in growth capex and $18.0 million in maintenance capex. That compares to the same period in 2010 when we reported $27.9 million of capital spending, consisting of $15.3 million in growth capex and $12.6 million of maintenance capex. We are currently targeting total capital expenditures for 2012 at approximately $30 million.

Xerium Technologies, Inc., a leading global manufacturer of industrial textiles and rolls used primarily in the paper production process, today introduced Formsoft, an advanced tissue forming fabric technology specifically designed to help its tissue fabric customers improve operational performance at lower costs.

“While tissue has been one of the primary growth drivers throughout the industry, it has long been one of the more demanding grades of paper to produce,” said Stephen R. Light, Chairman, CEO and President of Xerium Technologies. “We worked closely with our tissue customers to design a new tissue fabric that helps them improve their most demanding processes to produce a higher-quality product at lower costs.”

Formsoft is a patented, triple layer tissue forming fabric that has been engineered to provide high drainage performance that produces tissue with improved sheet properties, including formation, tensile strength, and softness. Formsoft delivers the highest fiber support with superior dimensional stability and uniformity throughout the life of the fabric, while also providing improved life potential that is well-suited for the rigors of a demanding tissue machine.

More information on Formsoft is available in the products section of http://www.xerium.com.

Xerium Technologies, Inc. (NYSE:XRM), a leading global manufacturer of industrial textiles and rolls used primarily in the paper production process, has announced that the company will be featured in the 21st Century Business series on the Fox Business Network, scheduled to air on Saturday, February 4^th.Stephen R. Light, Xerium’s Chairman, CEO and President, will discuss the company’s innovative SMART Technology, which is a growing platform of real-time paper machine optimization tools to help maximize output and reduce operational costs.

For a schedule of upcoming airtimes, click on the link below:

http://www.21cbtv.com/clearance-report/21cb2222-fbn.pdf

to see the video please press play below

Xerium Technologies, Inc., a leading global manufacturer of industrial textiles and rolls used primarily in the paper production process, today announced full global availability of Impact TS, advanced tissue felt technology, as part of its clothing (PMC) technology designed to help customers improve operational performance and reduce energy consumption, which are vital to the manufacturing of tissue grades.

With Impact TS, Xerium continues to take the lead in advancing the technology of PMC, which is critical to tissue machines' overall energy efficiency and product quality as it is produced. PMC products are highly engineered synthetic textile belts that are used to transport raw paper along the length of the paper-making process, as it is formed, pressed, and dried, keeping in constant contact with the paper as it is formed.

"Through innovations such as Impact TS, we continue to lead the market with technological solutions that boost efficiency and lower the cost of manufacturing paper," said Stephen R. Light, President, Chief Executive Officer and Chairman. "Time and again we earn our customers' loyalty by developing products with measurable return on investment."

Impact TS incorporates a unique combination of innovative raw materials, highly compressible base structure elements, topped with our premium needling technology delivering outstanding press performance. Impact TS technology utilizes hydrophilic base yarns aligned perfectly parallel in order to provide an ideal combination of pressure uniformity, exceptional dimensional stability and immediate nip saturation. These unique features provide immediate startup, lower energy consumption and optimum steady-state performance.

SOURCE: Xerium Technologies, Inc.

Xerium Technologies, Inc., a leading global manufacturer of industrial textiles and rolls used primarily in the paper production process, today announced its participation in the following upcoming event with the financial community:

About Xerium Technologies

Xerium Technologies, Inc. (NYSE: XRM) is a leading global manufacturer and supplier of two types of consumable products used primarily in the production of paper-clothing and roll covers. The Company, which operates around the world under a variety of brand names, utilizes a broad portfolio of patented and proprietary technologies to provide customers with tailored solutions and products integral to production, all designed to optimize performance and reduce operational costs. With 31 manufacturing facilities in 14 countries around the world, Xerium has approximately 3,400 employees.

SOURCE: Xerium Technologies, Inc.

SBG Investor Relations
Geoffrey Buscher, 919-526-1444
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Xerium Technologies, Inc., a leading global manufacturer of industrial textiles and rolls used primarily in the paper production process, today announced full commercial availability of a technologically advanced new series of roll cover products designed for improved machine performance, better wear and longer, more efficient product life. The latest range of roll cover products are designed to reduce operational costs and maximize the output of existing equipment, while enhancing product customization capabilities for each individual customer. Roll covers, which are used to coat the large machine cylinders that transport raw paper along the lengthy belts while the paper is formed, pressed, and dried, are critical to the quality of paper as it is produced.

"We continue to work very closely with our customers to advance the technology of paper manufacturing by enabling greater efficiency, leaner inventories, and lower costs," said Stephen R. Light, President, Chief Executive Officer and Chairman. "The high-ROI class of products that we're developing is in direct response to manufacturers' demands for higher quality at lower costs."

Developed by Stowe Woodward's global research and product engineering team, the latest family of roll cover products from Xerium include:

Hypercoat and Multicoat HCX - Coater Backing Roll Technology

Hypercoat and Multicoat HCX covers are high strength, extremely tough rubber materials ideal for the most demanding coating applications. Their superior mark resistance and smooth uniform surface finish enable a high quality, uniform coating application. With increased wear resistance and higher material strength, Hypercoat and Multicoat HCX covers improve reliability and extend operating life.

Multicoat HCX improves machine reliability and coater backing roll cover performance. Its improved mark resistance and outstanding tolerance to impacts and wraps help maintain high coater efficiency and coating quality. In addition to minimizing scoring and edge wear, its outstanding abrasion resistance enables Multicoat HCX to maintain profile longer than standard covers and to deliver extended run times.

Hypercoat delivers superior overall performance, combining outstanding mark, dent and scoring resistance with superior wear resistance. Hypercoat has already set multiple operating records and has reset the bar defining maximum performance. Hypercoat's superior properties allow deckling, and minor coating build-up can be sanded off by hand with minimal effect on profile. When maximum run time is required, Hypercoat delivers.

Aquarius Armor

Aquarius Armor roll covers deliver long, constant, superior performance in the super-soft cylinder couch, extractor couch, and lumpbreaker applications.

With Aquarius Armor, machine superintendents will now have a consistent nip pressure and performance throughout the life of the cover. The durable polyurethane shell of Aquarius Armor does not experience the wear seen by other soft polyurethane or rubber materials. Chemical attack is greatly minimized to prevent significant changes in hardness and nip pressure. CD uniformity is greatly improved due to the excellent abrasion resistance.

Aquarius Armor is engineered to stay in the machine for an extremely long time at a constant diameter and constant hardness, giving the operator the most reliable and predictable machine operation.

SOURCE: Xerium Technologies, Inc.

Xerium Technologies, Inc. has announced a plan to refinance its current credit facilities. The purpose of the proposed refinancing is to extend the maturity, and fix the rate on a portion, of Xerium's debt while providing increased flexibility and liquidity. The proposed transaction contemplates a private placement of $240 million aggregate principal amount of senior unsecured notes as well as an approximate $285 million multi-currency senior secured credit facility. While expected to close later this month, there can be no assurance that the refinancing transaction will be consummated as described above, or at all. Completion of the refinancing transaction is subject to market, documentation and customary closing conditions.

The senior notes have not been registered under the U.S. Securities Act of 1933, as amended (the "Securities Act"), or the securities laws of any other jurisdiction. Unless they are registered, the senior notes may be offered only in transactions that are exempt from registration under the Securities Act, or the securities laws of any other jurisdiction. Accordingly, the senior notes will be offered and sold in the United States only to qualified institutional buyers and outside the United States to non-U.S. persons in compliance with Regulation S. This announcement does not constitute an offer to sell or the solicitation of an offer to buy any securities that may be offered as part of the refinancing transaction in any jurisdiction in which such an offer or sale would be unlawful prior to registration or qualification under the securities laws of any such state.

Forward-looking statements, estimates and Disclosure Statement:

Various statements herein about Xerium's future expectations, plans and prospects are forward-looking statements which reflect Xerium's current views with respect to future events and financial performance. Statements which include the words "expect," "intend," "plan," "believe," "project," "anticipate" and similar statements of a future or forward-looking nature identify forward-looking statements for the purposes of the federal securities laws or otherwise. Actual results may differ materially from these forward-looking statements and estimates as a result of various important factors, including, without limitation, the possibility that Xerium may not be able to complete the refinancing transaction on terms acceptable to Xerium or at all and other factors discussed in Xerium's annual report on Form 10-K for the fiscal year ended December 31, 2010, and subsequent filings, all of which are on file with the SEC and are also available in the investor relations section of Xerium's website at www.xerium.com under the heading "SEC Filings." Any forward-looking statements are as of the date hereof, and Xerium has no duty to update them if its views later change, except as may be required by law.

SOURCE: Xerium Technologies Inc.

Xerium Technologies, Inc. (NYSE:XRM), a leading global manufacturer of industrial textiles and rolls used primarily in the paper production process, today announced that it has appointed David A. Bloss as an independent member of its Board of Directors. Mr. Bloss is the former chairman and CEO of CIRCOR International, Inc. (NYSE:CIR), a Burlington, Mass. supplier of valves and accessories to OEMs, processors, manufacturers and the military. Mr. Bloss has also been appointed to serve on the Company's Audit Committee and Nominating and Governance Committee.

"We welcome David, who adds significant additional strength to our board," said Stephen R. Light, President, Chief Executive Officer and Chairman. "David brings deep experience in global operations and we look forward to his insights and contributions as we continue to grow around the world."

Mr. Bloss retired as CIRCOR's CEO in 2008, a position he held since 1999 when CIRCOR was spun off of Watts Industries, Inc. Prior to joining Watts, Mr. Bloss served as President of the superabrasives division of Norton Company and as Director of Corporate Planning and Development for Cooper Industries. He also held positions at Clark Equipment Company and Price Waterhouse & Co. Mr. Bloss' career and experience as a CEO and President of manufacturing companies combined with extensive corporate planning, mergers and acquisitions and business integration allow him to provide the Board with extensive insights into a variety of corporate issues and challenges. He is currently a member of the Indiana University South Bend Chancellor's Advisory Board.

SOURCE: Xerium Technologies, Inc.

Xerium Technologies, Inc., a leading global manufacturer of industrial textiles and rolls used primarily in the paper production process, today announced the appointment of Clifford E. Pietrafitta to the position of Chief Financial Officer, effective immediately. Brian Fox, who has served as the Company's Chief Financial Officer and Chief Accounting Officer on an interim basis since August 13, 2010, has stepped down from those positions.

"We recruited Cliff for his extensive financial, operational, and strategic skills as we continue to drive innovation and position ourselves for the next stage of the company's growth," said Stephen R.Light, President, Chief Executive Officer and Chairman. "I also offer my sincere gratitude to Brian for his hard work and dedication during such a critical time. He served our company very well and we owe him our thanks."

From 1999 to 2010, Mr. Pietrafitta, 49, served as Chief Financial Officer of CSS Industries, Inc., a consumer products company that designs, markets, and manufactures boxed Christmas cards, gift wrap and other seasonal products for customers ranging from mass merchandisers and chain drug stores to supermarket chains and party stores. Previously, Mr. Pietrafitta served CSS Industries as Vice President - Finance from 1995 to 1999, and as Treasurer from 1991 to 1995.

SOURCE: Xerium Technologies, Inc.

Xerium Technologies, Inc., a leading global manufacturer of industrial textiles and rolls used primarily in the paper production process, today announced full global availability of EnerStar, an exclusive energy-saving paper machine clothing (PMC) technology designed to both reduce energy consumption and extend the economic life of forming fabrics that are vital to the manufacturing of paper.

With EnerStar, Xerium continues to take the lead in advancing the technology of PMC, which is critical to the quality of paper as it is produced. PMC products are highly engineered synthetic textile belts that are used to transport raw paper along the length of the paper-making process, as it is formed, pressed, and dried, keeping in constant contact with the paper as it is formed.

"This latest technological advancement in PMC further supports our strategy of innovation in the marketplace," said Stephen R. Light, President, Chief Executive Officer and Chairman. "We are especially pleased with the excellent results already reported by our launch customers applying EnerStar on their machines, who have documented with energy savings of up to 15%. We continue to partner with our customers to help enhance their operating efficiencies and quality, while significantly lowering their cost of operation and inventories."

Developed by Xerium and its research partners, EnerStar is an exclusive technology produced with the highest-grade, modified polymers and is available as an optional feature for selected fabric designs from Xerium's Huyck.Wangner and Weavexx PMC companies.

Contact Xerium's Huyck.Wangner or Weavexx for more information on EnerStar.