Albany Int'l CEO attributes 3Q profit decline to European price pressures
The Business Review (Albany)
Profits fell for Albany International Inc. in the third quarter ended Sept. 30.
The Albany, N.Y., company, which makes fabrics used in the paper manufacturing process known as paper machine clothing, reported third-quarter net income of $14.3 million, 48 cents a share. This is down from $18.5 million, 57 cents a share, for the same period in 2005.
Analysts had expected the company to earn 53 cents a share for the quarter. The results for the third quarter of 2005 included income tax adjustments that decreased net income by nine cents a share.
Albany International President and CEO Joseph Morone reminded investors that he had previously indicated that results for the next few quarters would be negatively affected by European price pressures on the paper machine clothing market.
"This was certainly the case in the third quarter," Morone said. "Global (paper machine clothing) revenue declined 5.6 percent, excluding currency effects, compared to the third quarter of 2005. This decline was due entirely to a reduction in European revenue that was much sharper than expected."
Revenues in the paper machine clothing sector grew a bit in Asia and market share in the Americas increased, Morone said.
The company expects to see a gradual increase in operating income from cost-reduction and process improvement efforts and continued growth in the Applied Technologies and Albany Door segments of the business will contribute to revenues, the company said.
For the nine months, Albany International (NYSE: AIN) reported net income of $51.8 million, $1.70 a share, compared with net income of $57.8 million, $1.78 a share, for the first nine months of 2005.
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