Sonoco has announced that it will raise the price for all grades of uncoated recycled paperboard (URB) products by $45 per ton, effective with shipments in the United States and Canada beginning August 31, 2015. 

“The price increase is driven by recent increases in costs for recovered paper, chemicals and other operating costs,” said Palace Stepps, director of sales and marketing for Sonoco’s North America paper business.

Sonoco is one of the largest producers of uncoated recycled paperboard in the United States and Canada, producing more than 1 million tons annually from 11 mills. For more information about Sonoco’s complete line of URB paper products or to learn more about current pricing, please visit the Company’s website or contact the Company at 1-800-377-2692.

About Sonoco
Founded in 1899, Sonoco is a global provider of a variety of consumer packaging, industrial products, protective packaging and packaging supply chain services. With annualized net sales of approximately $5.0 billion, the Company has 21,000 employees working in more than 300 facilities in 34 countries, serving many of the world’s best known brands in some 85 nations. Sonoco is a proud member of the 2014/2015 Dow Jones Sustainability World Index. For more information on the Company, visit our website at www.sonoco.com.

Contact:
Roger Schrum
+843-339-6018
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KapStone Paper and Packaging Corporation has announced that its Board of Directors has approved a regular quarterly dividend of $0.10 per share payable on October 13, 2015 to shareholders of record as of September 30, 2015.  Future declarations of quarterly dividends and the establishment of future record and payment dates are subject to the determination of the Company's Board of Directors.

About the Company

Headquartered in Northbrook, IL, KapStone Paper and Packaging Corporation is the fifth largest producer of containerboard and corrugated packaging products and is the largest kraft paper producer in the United States. The Company has four paper mills, 21 converting plants and 65 distribution centers.   The business has approximately 6,200 employees.

SOURCE KapStone Paper and Packaging Corporation

UPM opens an art exhibition by the Chinese contemporary artist Wei Qingji on 14 August at Bioforum, UPM’s showroom at the UPM Biofore House. The exhibition is part of the Helsinki Festival programme, and it is organised in cooperation with the Centre of International Cultural Exchange, Ministry of Culture of the People’s Republic of China.

This year’s Helsinki Festival programme “Focus China” presents one of the most comprehensive looks into Chinese art and culture seen in Europe in recent years. This is the first time that the work of the leading Chinese contemporary artist, Wei Qingji is exhibited in the Nordics.

Wei's art reflects the opening of China to the world. "I tend to transform what I see every day into my own thinking. And I have to hold on to that thinking in order to express it,” says Wei Qingji. “What I express has to be related to the environment that I’m living in and what I see every day in different types of media. Today, the progress brought by modernisation has changed our way of life substantially. We have a different aesthetic approach to art so it’s necessary for me to adjust visually,” Qingji explains.
 
“Ink painting is the representative art form of traditional Chinese paintings. As a renowned Chinese contemporary ink painting artist, Wei Qingji has successfully integrated innovation into traditional ink painting by connecting the spirit of literature with post-modern art flavor and his close attention to the social changes of contemporary China,” says Yu Peng, Director-in-General, Center of International Cultural Exchange, Ministry of Culture of China.

"UPM has a long-term commitment to the Chinese market, and we are actively investing in China. We are happy to have this chance to bring Chinese culture to Finland. Moreover, the exhibition by the Chinese artist is also a perfect fit with the Helsinki festival's theme," says Elisa Nilsson, Vice President, UPM Brand and Communications. “The exhibition combines elements of Chinese and Western. New and old. Traditional and contemporary. Combining the traditional with the modern is also an important element in realizing UPM’s Biofore vision. Sustainable innovations are built on deep respect for the heritage combined with bold and open-minded visionary thinking,” Elisa Nilsson continues.

The exhibition is open for public between 14 August – 31 October 2015 at UPM Bioforum, Alvar Aallon katu 1, Helsinki. Opening hours: Tue - Fri 11-18, Sat-Sun 12-16. Additionally, the exhibition is open during the Night of the Arts, on 20 August until 22 hours. Free entrance.

For further information:
Elisa Nilsson, Vice President, Brand and Communications, tel. +358 40 500 3150
bioforum.upm.fi

UPM leads the reformation of bio and forest industries. We are building a sustainable future in six business areas: UPM Biorefining, UPM Energy, UPM Raflatac, UPM Paper Asia, UPM Paper Europe and North America and UPM Plywood. Our products are made of renewable raw materials and are recyclable. We serve a global base of customers. We employ approximately 20,000 people, and our annual sales are approximately EUR 10 billion. UPM's shares are listed on NASDAQ OMX Helsinki. UPM – The Biofore Company – www.upm.com

The Helsinki Festival is the largest multi-art festival in Finland, and takes place annually between late August and early September. The festival aims to offer unique art experiences to visitors from both Finland and from abroad. In 2015, the Helsinki Festival will take place between 14 August and 30 August. The Night of the Arts event will take place on Thursday 20 August 2015. Last year, the festival was attended by more than 230,000 visitors.

Centre of International Cultural Exchange (CICE) is a not-for-profit organization subordinate to Ministry of Culture, People’s Republic of China and a comprehensive institution engaged in cultural exchange programs. Aiming at promoting Chinese culture to the world and spreading the charm of Chinese culture, CICE has set up a close link with and provide essential support for worldwide Chinese embassies, consulates, and specially China Cultural Centres. Every year CICE organizes more than one hundred cultural events, including exhibition, performance and forum etc. in various cities, regions and countries.

Gebr. Bellmer GmbH Maschinenfabrik located in Niefern, Germany has taken over the roll and calender specialist GapCon from Irle-Deuz Group located in Siegen, Germany. Since the foundation in the year 2006 by the experienced engineers Wolfgang Wiertz and Wolfgang Mark, the Gap-Con Group has been a supplier of high-quality products and services for the paper industry. Due to professional expertise, entrepreneurial courage and great commitment, the company has developed over the years into a globally recognized technology enterprise.

In particular, GapCon enjoys reputation as leader in the field of calenders, shoe presses as well as special rolls.

From the beginning, both companies Bellmer and GapCon have been united in a close partnership as to development and supply of shoe presses.

Martin Kollmar, president of Bellmer explains: “The complete product range of GapCon as well as the related services and contact persons will remain unchanged and will perfectly complement our existing portfolio.” In future, the company will operate under the name “Bellmer GapCon GmbH”. The company’s locations in Willich (Germany), St. Pölten (Austria) and Calcutta (India) will continue. The Chinese location at Shanghai will be merged with Bellmer’s local branch. The subsidiary GapCon Italy will remain part of Irle-Group and will specialize in the construction of tissue machines.

Both product lines and geographical presence are an ideal complement to the Bellmer Group, resulting in even better future possibilities to serve the paper industry in an optimal and flexible manner.

With this step, the Bellmer group will have a staff of about 600 people worldwide with a sales vol-ume of approx. 130 million EURO. Bellmer is a family-owned company, established in 1842. Bellmer is managed in the 6th generation by the three brothers Philipp, Martin and Erich Kollmar. The Bellmer group features two divisions: In the Bellmer Paper Technology, paper machines for special applications are manufactured. The Bellmer Separation Technology offers optimum solutions for the field of solid/liquid separation.

Erich Kollmar, president of Bellmer points out: “For us, it is very important that the great employees of both our companies will cooperate even closer than before. The previous managing directors of GapCon, Wolfgang Wiertz and Wolfgang Mark, will manage the company also in future.” Wolfgang Wiertz confirms: “After having cooperated with Bellmer for such a long time, a lot of new opportunities will result form this merger for all parties. First of all, the customers of the paper and board industry will benefit from this development.”

The complete product range of GapCon – the ideal complement to the Bellmer product portfolio – as well as the related services and contact partners will remain unchanged. The previous GapCon CEOs Wolfgang Wiertz and Wolfgang Mark also act as managing directors of the new "Bellmer GapCon GmbH".

The GapCon locations in Willich (Germany), St. Pölten (Austria) and Calcutta (India) will remain. The Chinese location in Shanghai will be merged with Bellmer’s local branch.

For you as our business partner, this acquisition offers the following advantages:

• From now on, you can order the required products starting from the headbox via the wire section, press section with/without shoe press up to the slitter winder from one source!

• We can now provide our global customers from the paper/ and board industry with an even larger pool of paper machine specialists who will comprehensively and flexibly support our customers when it comes to the implementation of their projects.

Bellmer and Bellmer GapCon GmbH are looking forward to cooperating with you.

Fortress Paper Ltd. reported 2015 second quarter EBITDA of $4.1 million, an increase of $6.6 million and $10.1 million over the previous quarter and prior year comparative period, respectively. The Dissolving Pulp Segment generated EBITDA of $2.1 million and the Security Paper Products Segment generated EBITDA of $3.4 million. Corporate costs contributed EBITDA loss of $1.4 million to EBITDA.

EBITDA of $2.1 million for the Dissolving Pulp Segment for the quarter ended June 30, 2015 was an improvement of $5.4 million when compared to the first quarter of 2015 EBITDA loss of $3.3 million. The operational challenges in the chemical preparation area and limited capacity of the turbine experienced during the fourth quarter of 2014 impacted the results of the first quarter of 2015. The results for the quarter ended June 30, 2015 were favorably impacted mainly by improved productivity and cash production cost over the prior quarter, increased power generation under the additional power supply agreement with Hydro Québec, and improved pricing. EBITDA results for the second quarter of 2015 improved by $6.3 million compared to the second quarter of 2014.  The results of the second quarter of 2014 reflect restart procedures in early March 2014 and  the  mill  producing  northern  bleached  hardwood  kraft  pulp  through  late  April  when production was switched back to dissolving pulp.

The Company sold 39,664 air dried metric tonnes (“ADMT”) of dissolving pulp in the second quarter of 2015 compared to 38,957 ADMT of dissolving pulp in the first quarter of 2015. Although market conditions remain challenging, the second quarter of 2015 saw slightly improved pricing and industry conditions. However, the Dissolving Pulp Segment continues to be affected by the antidumping duty imposed by China’s Ministry of Commerce in April 2014. The Company continues to have success in diversifying its geographic sales mix and intends to further reduce its dissolving pulp shipments to China by approximately 20% over the balance of the year.

The Landqart mill continues to implement new initiatives to improve efficiencies and profitability. EBITDA of $3.4 million for the Security Paper Products Segment for the quarter ended June 30, 2015 was $1.1 million higher when compared to the first quarter of 2015, and $3.8 million higher when compared to results in the second quarter of 2014. The Landqart mill sold 2,745 tonnes of security paper in the second quarter of 2015, compared to 2,715 tonnes of security paper in the first quarter of 2015. More efficient production and better waste rates positively impacted the results relative to the prior year comparative period.

The Landqart mill is exposed to foreign currency exchange fluctuations, as a material amount of its sales are denominated in euros and its major costs, excluding raw materials, are denominated in Swiss francs as compared to some competitors whose manufacturing costs are primarily denominated in euros.  In response to the significant appreciation of the Swiss franc against the euro in the first quarter of 2015, management continues to  implement their foreign exchange counter measure program (“FECM”), which includes mitigating foreign exchange and reducing other costs in areas such as procurement and logistics, to mitigate the negative financial impact in the short and mid-term.

For a summary of significant developments please refer to the Management’s Discussion and Analysis for the three and six month periods ended June 30, 2015 available on SEDAR at www.sedar.com

A presentation to complement our second quarter earnings conference call is available under the “Investor Relations” section at www.fortresspaper.com

OMNOVA Solutions (NYSE: OMN) recently announced its 2014 Technology Award recipients. This annual award program recognizes exemplary technological contributions by associates in OMNOVA's research and development, sales and marketing, technical service, operations and LEAN SixSigma organizations.

These innovations in product development and process improvement are positively impacting customers in many of OMNOVA's served markets including performance chemicals for a variety of specialty chemical applications, as well as coated fabrics for automotive seating.

Recipients hail from across OMNOVA's global operations, including facilities in Akron, Ohio; Mogadore, Ohio; Jeannette, Pennsylvania; Monroe, North Carolina; Green Bay, Wisconsin; and Minhang, China.

"As a global, customer-centric company, we are continually taking actions that will enhance the value we deliver to our customers and lead to profitable growth," said Kevin McMullen, OMNOVA Solutions' Chairman and Chief Executive Officer. "The foundation of these efforts is the enhancement of our existing competencies, as well as the development of new, sustainable products and processes that position our customers and our Company for the future. These innovation teams have clearly demonstrated their commitment to our core values and have strengthened our diverse technology base.

"We are working hard to continually enhance our ability to identify new opportunities in our existing and adjacent markets to leverage OMNOVA technology to provide unique value added solutions for meeting unmet customer needs. These and other ongoing innovation efforts position us to further meet the needs of the markets we serve, profitably grow and become a more valuable supplier to our customers, while reaffirming our commitment as a responsible member of the communities in which we operate."

Innovation titles, summaries and recipients are as follows:

Stain Resistant Finish for Coated Fabrics
Category: New Product Development/Commercialization

• Marilyn Germano - Akron, Ohio (Global Technology Center)
• Barry Goldslager - Akron, Ohio (Global Technology Center)
• Charles Kausch - Akron, Ohio (Global Technology Center)
• Rick Thomas - Akron, Ohio (Global Technology Center)
• Raymond Weinert - Akron, Ohio (Global Technology Center)
• James Robbins - Akron, Ohio (Global Technology Center)

Performance Chemicals and Engineered Surfaces division team members worked collaboratively to develop and implement new topcoats that extend the competitive advantage of the PreFixx^® finish when applied to coated fabrics. They utilized the Company's unique PolyFox™ fluorochemicals to provide a more stain resistant PreFixx^® finish. The new topcoat allows improved stain resistance and easier cleaning of stains, including permanent markers, offering customers stain protection that is a leader in the industry. 

Styrene Butadiene (SB) Latex by Controlled Polymerization and Improved Process 
Category: Continuous Innovation

• Pam Arndorfer – Green Bay, Wisconsin
• Kristie Crocker – Green Bay, Wisconsin
• Mike Flickinger - Akron, Ohio (Global Technology Center)
• Yongsin Kim - Akron, Ohio (Global Technology Center)
• Scott Sabourin – Field Sales
• Mitch Shipman - Akron, Ohio (Global Technology Center)
• John Westerman - Akron, Ohio (Global Technology Center)

The team developed a SB latex for the paper industry that delivers styrene butadiene acrylonitrile terpolymer latex performance. The latex provides increased strength as well as the ability to produce multi-modal products, delivering high strength and superior optical properties in one product.

Cost of Quality Performance Improvement (Jeannette, PA) 
Category: LEAN SixSigma Excellence

• Jared Antonacci – Monroe, North Carolina
• John Coulter – Jeannette, Pennsylvania
• Dan Hilt – Jeannette, Pennsylvania
• Dave Kostrzewski – Jeannette, Pennsylvania
• Josh Scott – Jeannette, Pennsylvania

The team used LEAN SixSigma tools, including value stream analysis, to evaluate and identify areas of waste that were negatively contributing to the Jeannette, Pennsylvania laminates and films plant's long term competitive position. The tools identified many potential opportunities, and numerous projects were run to eliminate waste. The projects generated improvements in material flow and handling, defective material reduction, inventory management and communication. This led to a significant reduction in overall quality related costs to the plant.  

GenCryl Pt^® by Semi-Continuous Process with Controlled Polymer Architecture 
Category: Core Competence Building

• Kristie Crocker – Green Bay, Wisconsin
• Mike Flickinger - Akron, Ohio (Global Technology Center)
• Scott Frasca – Field Sales
• Yongsin Kim - Akron, Ohio (Global Technology Center)
• Rochelle Morgan – Pilot Plant, Mogadore, Ohio
• Mitch Shipman - Akron, Ohio (Global Technology Center)

The team developed a new high strength, low odor latex designed specifically to maximize the efficiency of the latex in a specific customer's formulation. The improved polymer properties were achieved by identifying critical polymer structures that provided maximum binding strength. New processing parameters were developed to control the polymerization, allowing production of polymer structures needed to deliver superior performance. The new product resulted in binder reductions and lower end use cost for this customer, and a new capability that can be leveraged more broadly.

Creation of the Magnetic Resonance Facility 
Category: Core Competence Building

• Tammy Donohue - Akron, Ohio (Global Technology Center)
• Matthew Espe, Ph.D - Akron, Ohio (Global Technology Center)
• William Sands - Akron, Ohio (Global Technology Center)

This award acknowledges the continuous innovation benefits provided by OMNOVA's Magnetic Resonance Facility (MRF). The MRF was established in OMNOVA's Global Technology Center (GTC) in Akron, Ohio, and the facility supports new product development (NPD), manufacturing and customer support. The facility has benefited OMNOVA through expedited NPD, developing rapid solutions to manufacturing issues, providing customer support and qualifying secondary raw material sources. The facility has been involved in projects across all business units, as well as supporting analytical efforts worldwide.

Water-based Low TVOC and Odor Coated Vinyl for Automotive Application 
Category: New Product Development/Commercialization

• Sunny He – Minhang, China
• John Zhao  – Minhang, China
• Lu Zhenhai  – Minhang, China

OMNOVA's global coated fabrics team proposed to a large automotive manufacturer in China that it switch from the current solvent-based coated product to a fully water-based coated product. The product was successfully launched in May 2014. This initiative greatly reduced the concentration level of eight types of solvents in the passenger car compartment, enhancing air quality. Total volatile organic compounds (TVOC) test results show an obvious reduction of solvents level in the product. This demonstrated OMNOVA's valued-added capabilities and services in helping to improve overall vehicle performance in the market.

OMNOVA Solutions Inc. is a technology-based company with 2014 sales of $1 billion and a global workforce of approximately 2,300.  OMNOVA is an innovator of emulsion polymers, specialty chemicals, and functional and decorative surfaces for a variety of commercial, industrial and residential end uses.  Visit OMNOVA Solutions at www.omnova.com.

GENCRYL PT and PREFIXX are registered trademarks of OMNOVA Solutions. 
POLYFOX is a trademark used under license.

SOURCE OMNOVA Solutions

Report Highlights Company's Progress Towards Sustainable Business Roadmap

Domtar Corporation has released its 2015 Sustainability Report providing insight into the company's priorities, and outlining opportunities on the journey towards becoming a more sustainable business.  The report reinforces Domtar's commitments and provides longer-term context for its decisions and activities, while revealing the connectivity between the two.

"Sustainability at Domtar shapes our decisions and optimizes our performance," explained John D. Williams, Domtar's president and CEO. "We accomplish this through careful consideration of how we leverage emerging opportunities, preserve shareholder value and maintain our position as a true leader in sustainability - beyond just the forest products industry."

The 2015 report showcases the company's progress against stated sustainability goals. Key accomplishments in this year's report include:

• 74% of electricity used in Domtar's pulp and paper mills was self-generated, outpacing the U.S. Pulp and Paper Industry average of 59%.
• 52% reduction in the recordable safety incident rate since 2008.
• 23% reduction in waste sent to landfills from Domtar's pulp and paper mills, and avoided landfilling materials equivalent to the weight of almost two Empire State Buildings since 2013.
• Sold the five-millionth ton of Forest Stewardship Council® certified paper in 2014, a first for the North American market.
• $1.35 million donated in community investments throughout 2014.

Domtar's commitment to sustainability begins with recognizing the unique operational context of each facility, conducting an in-depth analysis to gain a holistic understanding of the risks and opportunities at the facility level. More information on the company's sustainability practices can be found at www.domtar.com/sustainability.

About Domtar 
Domtar Corporation (NYSE: UFS) (TSX: UFS) designs, manufactures, markets and distributes a wide variety of fiber-based products, including communication papers, specialty and packaging papers, and absorbent hygiene products. The foundation of our business is a network of world-class wood fiber-converting assets that produce papergrade, fluff and specialty pulp. The majority of our pulp production is consumed internally to manufacture paper and consumer products. Domtar is the largest integrated marketer and manufacturer of uncoated freesheet paper in North America with recognized brands such as Cougar^®, Lynx^® Opaque Ultra, Husky^® Opaque Offset, First Choice^®, EarthChoice^® and Xerox® Paper and Specialty Media. Domtar is also a marketer and producer of a broad line of absorbent hygiene products marketed primarily under the Attends^®, IncoPack^® and Indasec^® brand names. In 2014, Domtar had sales of $5.6 billion from some 50 countries. The Company employs approximately 9,800 people. To learn more, visit www.domtar.com.

SOURCE Domtar Corporation

DS Smith, an Italian market leader in containerboard production, has reduced maintenance costs and increased its paper quality and machine productivity thanks to the OnQ Profilmatic control system and OnQ ModuleJet headbox actuators from Voith.

The company's mill in Lucca, Italy, was experiencing inconsistent paper profiles and wrinkles due to the former actuator control of the existing control system of its PM 2. Voith recommended the OnQ Profilmatic cross profile control software, which is part of its modular and flexible Voith ComCore platform to optimize the shape of the profiles.

“Our existing system was obsolete. The actuator delivery time was a problem and we were spending too much on maintenance," said Stefano Andreotti, Technical and Technology Manager at DS Smith.

"Our production engineers are now very happy with Voith's OnQ Profilmatic. The system automates a process that before was entirely manual. Wrinkles have been reduced, and we are pleased with the deviation of the profiles,” said Andreotti.

The OnQ Profilmatic has the ability to determine the portion of random noise in the measurements. Continuous, dynamic profile mapping allows exact local mapping of the actuator control zones to the measurements and leads to better paper quality.

A major part of the Voith ComCore platform is the OnView information system, which makes all the details of the papermaking process available for analysis. This is the key to continued performance improvements for the machine. With this powerful toolset Voith accompanies DS Smith to achieve further efficiencies on the PM 2.

Further information is available on the Voith website at www.voith.com/paper. Voith Paper is also on Twitter and YouTube.

Voith Paper is a division of the Voith Group and the leading partner to and pioneer in the paper industry. Through constant innovations, Voith Paper is optimizing the paper manufacturing process, focusing on developing resource-saving products to reduce the use of energy, water, and fibers. Furthermore, Voith Paper offers a broad service portfolio for all sections of the paper manufacturing process.

Voith sets standards in the markets of energy, oil & gas, paper, raw materials and transport & automotive. Founded in 1867, Voith today has more than 39,000 employees, sales of €5.3 billion and locations in more than 50 countries, making it one of the largest family-owned companies in Europe.

Xerium Technologies, Inc. (NYSE:XRM), a leading global provider of industrial consumable products and services, announced its Q2 2015 results.

• Adjusted EBITDA improved to $28 million, representing a margin improvement of 170 basis points compared to Q2 2014 and the 5th consecutive quarter of improved Adjusted EBITDA margins.
• Gross margins have improved over the last 11 consecutive quarters.
• SG&A at constant currency declined 4% sequentially.
• Updated full year 2015 guidance to be similar to 2014, reflecting near-term newsprint and graphical grade decline trends and weak euro.
• Sales growth investment programs remain on track with 8 facilities beginning production or ramping up production capabilities in the second half of 2015 coupled with over 39 new patented products.

Net sales for Q2 2015 were $123.1 million, an increase of $2.1 million, or 1.7%, over net sales of $121.0 million for Q1 2015. On a constant currency basis, net sales increased $3.6 million or 2.7% over Q1 2015 net sales, primarily driven by an increase of 3.2% in machine clothing net sales and an increase of 1.8% in rolls net sales. Constant currency SG&A declined by $1.3 million, or 4.1% to $30.4 million in Q2 2015 from $31.7 million in Q1 2015. Q2 2015 Adjusted EBITDA increased to $28.0 million, up 6.9% from $26.2 million in Q1 2015, driven primarily by the increase in sales volume and the decline in SG&A, partially offset by FX losses in Q2 2015 related to the revaluation of non-functional currency balances. See "Non-GAAP Financial Measures" and "Segment Information" below.

Net sales for Q2 2015 decreased by $(3.9) million, or (2.8)% compared to Q2 2014, on a constant currency basis, primarily driven by the decline in the printing, writing and newsprint markets in North America and lower mechanical services sales in North America. See "Non-GAAP Financial Measures" and "Segment Information" below.

Q2 2015 gross profit was $49.4 million, or 40.2% of net sales, compared to $55.4 million, or 39.6% of net sales in Q2 2014. Machine clothing gross margin improved to 43.9% (excluding $0.9 million of one-time Kunshan, China startup costs) in Q2 2015 from 41.1% in Q2 2014. These improvements were a result of positive currency effects that were partially offset by unfavorable fixed cost absorption. Rolls and service gross margin decreased slightly to 36.0% (excluding $0.2 million of Corlu, Turkey one-time start-up costs) in Q2 2015, from a gross margin of 36.5% in Q2 2014, primarily due to unfavorable currency effects.

SG&A expenses were $30.4 million, or 24.7% of net sales, in Q2 2015, down from Q2 2014 SG&A expenses of $35.4 million, or 25.4% of net sales, primarily due to favorable currency effects and lower management incentive costs.

Q2 2015 basic earnings per share were $(0.05) per share versus Q2 2014 basic earnings per share of $0.05 per share. Excluding non-recurring items such as restructuring costs, plant startup costs, foreign currency gains/(losses) and one-time tax reserve charges, basic adjusted earnings per share were $0.37 in Q2 2015, compared to $0.43 in Q2 2014. See "Basic Adjusted Earnings Per Share" below.

CEO Comments

“Despite the current difficult industry trends, our Q2 2015 results demonstrated that our initiatives to improve our cost structure continue to deliver both sequential and YOY improvements in Adjusted EBITDA margins, gross margins and SG&A rates. As our sales growth investment programs come on line, we will begin to generate sales growth despite the decline of graphical grade production,” said Harold Bevis, President and CEO of Xerium Technologies, Inc. "Our 2 1/2 year $87 million sales growth investment program is nearing completion. We have completely renovated our products and factories and it has led to many patentable inventions. The second half of 2015 is a turning point for Xerium, which will enable us to expand our ability to gain sales in the competitive marketplace. We are excited about the progress we are making and expect positive financial returns as we ramp up production in the second half of 2015 and into 2016."

2015 Outlook

During the second quarter of 2015, the machine clothing and rolls sales environment was more challenging than we had anticipated due to customer shutdowns and curtailments. Consequently, we expect our full-year Adjusted EBITDA will likely be comparable to last year's Adjusted EBITDA, due to this quarter's results as well as our expectation for the remainder of the year. We view this as a temporary dynamic given our multi-year sales growth investments are in the early stages of gaining traction and will increasingly augment our sales growth. We expect the incremental earnings from our sales growth investment programs to more than offset the permanent market declines in graphical paper production.

To further increase our profit rates, we are continuing to take costs out of the business. This includes the recent closure of a machine clothing facility in Warwick, Quebec, Canada. The cost structure at this plant was operating at almost twice the level of our low-cost facilities. We still have other facilities with very large cost reduction opportunities. Beyond our improving cost structure and new geographic footprint, we will also benefit from new product introductions. Currently, we have 425 issued patents and 97 pending patents. Additionally, as our capital expenditures begin to decline, we will begin to pay down our debt with the surplus cash flow.

Sales Growth Investment Program Update

The following sales growth investment programs, totaling $87 million, involve a full gamut of initiatives that will enable Xerium to deliver significant incremental Adjusted EBITDA growth and further increase our earnings potential. Most of our spending is behind us and these multi-year programs are coming on line in the second half of 2015.

$71 Million Global Machine Clothing Sales Growth Investment Program

On July 22, 2015, we announced that our Kunshan, China press felt plant began production. This two year, $47.8 million greenfield press felt plant, is located in the center of the largest paper-making region in the world. This facility significantly improves Xerium's competitive positioning, from both a lead time and cost perspective, enabling Xerium to more closely partner with customers who were previously served from our European plants through a lengthy and costly supply chain. Xerium will conduct business in local currency and local languages and will be able to service the largest pulp, paper, paperboard, and tissue machines in the world, as the main machine in the plant is over 15 meters wide. For some press felt designs, Xerium will be able to make three pieces simultaneously - a first for the Company.

Our Piracicaba, Brazil expansion project remains on track to be completed in late 2015, which after three years and a $9.1 million investment (includes $2.7 million in sales growth capital investment and $6.4 million in restructuring capital investment), will have been expanded to offer higher quality dryers, increased exports for spiral and woven dryers, forming fabrics and non-woven fabrics. In addition, this expansion will result in significantly shorter lead times to our customers, and will enable us to consolidate three mid-sized South American plants into one low-cost plant in Piracicaba, Brazil that is globally competitive.

We continue to remain on schedule with our other second half 2015 initiatives at Kentville, Nova Scotia ($4.4 million investment); Gloggnitz, Austria ($12.9 million investment); and Asahi, Japan ($3.2 million investment). Xerium is expanding its product lines and capacity in these plants to better enable it to grow sales. These plants have either recently been or will soon be commissioned and will ramp up their respective production capabilities throughout the second half of 2015.

$16 Million Global Rolls and Service Sales Growth Investment Program

On July 16, 2015, we announced that our Corlu, Turkey Rolls facility began production. This two year $4.3 million greenfield rolls and service plant is in a key emerging market. This facility is a new regional hub, serving customers in Turkey, Southeast Europe and the Middle East. Xerium has conducted business in these regions for many decades as an exporter, and now will serve as a local low-cost provider with shortened lead times to customers. The plant has one of the largest grinding machines in the region and was built to handle rolls up to 80 metric tonnes in weight. For the first time ever, customers in this under-served region will receive locally provided and locally optimized state-of-the-art rubber extrusion and polyurethane roll covering technology.

While the award-winning Ruston, LA facility completed its expansion late last year ($2.1 million investment); Griffin, GA ($4.1 million investment) and Neenah, WI ($5.5 million investment) expansions will all be completed in the second half of 2015. These facilities will expand Xerium's product lines and capacity to better enable it to grow sales.

Collectively, these programs compliment our legacy business model and enable Xerium to replace sales from declining graphical business segments. We will be close to key customers, with short lead times and low costs. Additionally, we are broadening our product and service offerings to give us a wider aperture into new markets and new machines types. These are key turning points for Xerium's business.

CFO Comments

EVP and Chief Financial Officer, Cliff Pietrafitta said: "During the second quarter of 2015 we continued to take costs out of the business with quarterly gross savings of $5.5 million. We spent approximately $21.7 million of cash on capital expenditures and restructuring costs in Q2 2015 and we expect to spend approximately $50 million in 2015 on capital expenditures and between $8 and $10 million on restructuring costs for the entire year of 2015.

As of June 30, 2015, we had an aggregate of $30.3 million available for additional borrowings under our Credit Facility and smaller lines of credit and our cash balances totaled $9.2 million. Q2 2015 free cash flow (defined as cash-flow from operations less capital expenditures) decreased $(3.3) million to $(9.1) million from $(5.8) million in Q2 of 2014, primarily as a result of increased capex spend and Q2 2015 sales decreases.

Net debt (which is defined as total debt less cash) increased to $473.4 million in Q2 2015 from $464.7 million in Q1 2015, as a result of increased debt outstanding. Our net debt leverage ratio was 4.1x in Q2 2015, substantially the same as 4.0x in Q1 2015. We expect our Net debt and leverage to improve in the later part of 2015, as free cash flow becomes positive and we begin to pay down debt.

Trade working capital decreased $8.4 million to $123.2 million at June 30, 2015 from $131.6 million at December 31, 2014, primarily as a result of favorable currency impacts. See "Trade Working Capital Information" and "Non-GAAP Financial Measures" below.

Our effective income tax rate for Q2 2015 was 117.7% compared to 75.3% in Q2 2014. Excluding the effects of restructuring and a non-recurring tax reserve adjustment, our effective tax rate was 63.2%, compared to 39.2% in Q2 2014, primarily due to the mix of earnings in tax paying jurisdictions versus earnings in non-tax paying jurisdictions.

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About Xerium Technologies

Xerium Technologies, Inc. (NYSE:XRM) is a leading global provider of industrial consumable products and services. Xerium, 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 27 manufacturing facilities in 13 countries around the world, Xerium has approximately 3,100 employees.

Source: Xerium Technologies, Inc.

Xerium Technologies, Inc.
Cliff Pietrafitta, 919-526-1444
Investor Relations
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