Albany International Corp. reported second-quarter net income per share of $0.15, after restructuring charges of $0.18 per share and costs related to performance improvement initiatives of $0.13 per share. Income tax adjustments had the effect of increasing second-quarter 2007 net income by $0.09 per share. Net income per share was $0.63 in the second quarter of 2006.
The Q2 2007 costs related to performance improvement initiatives were $4.9 million. This includes Selling, Technical, General and Research (STG&R) expenses of $4.3 million related to the implementation of SAP and the transition to a centralized European administration. In addition, $0.6 million of costs related to start-ups and equipment relocation were included in Cost of Goods Sold.
Net sales increased $5.6 million, or 2.2 percent compared to the same period last year. Excluding the effect of changes in currency translation rates, net sales decreased 1.2 percent.
Gross profit was 36.1 percent of net sales in the second quarter of 2007, compared to 39.8 percent in the second quarter of 2006. The decrease is principally due to production inefficiencies in North America PMC operations and the impact of lower PMC prices and volume in Europe.
STG&R expenses were $82.6 million in the second quarter of 2007, in comparison to $75.1 million in the second quarter of 2006. The increase includes $3.1 million related to the effect of changes in currency translation rates and the $4.3million of expenses, noted above, related to performance improvement initiatives.
marketing@alchempro.com
