(Source: The News & Observer)
By David Ranii, The News & Observer, Raleigh, N.C.
May 6--Losses doubled in the latest quarter at Xerium Technologies, a Youngsville manufacturer of equipment used in paper production.
The company reported late Tuesday that it lost $9.4 million, or 19 cents per share, in the first quarter. A year ago it lost $4.7 million.
The decline was primarily because of lower sales and foreign currency fluctuations. Sales totaled $116.5 million, down 27 percent from a year earlier. After adjusting for currency fluctuations, sales decreased 18 percent.
"We are realistic about the many challenges we face during the deep downturn in our industry," chairman and CEO Stephen R. Light said in a prepared statement. "Our financial planning reflects our belief that the bottom of this market will not occur until mid-2009, followed by a recovery that builds momentum by mid-2010. Our strategy for debt reduction remains paramount and we have continued to believe that we will exit 2009 stronger than when we entered it."
Xerium made $21.5 million in debt payments during the quarter. It total bank debt totaled $609.3 million as of March 31.
Xerium announced in February that it planned to cut 230 jobs from its worldwide work force of 3,700. At that time it had about 60 employees at its Youngsville headquarters.
Xerium shares were trading this morning at 83 cents, down 9 cents.
The company was notified in late December that it faced delisting from the New York Stock Exchange for failing to meet exchange standards, but at the end of March the NYSE accepted the company's plan for continued listing while it works to regain compliance.
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