In the second quarter of 2007, the Company recorded restructuring charges of $7.1 million related to reductions in corporate staff, closure of the Doors segment plant in Sweden, charges associated with centralization of administration functions in Europe, the announced closure of a PMC plant in Finland, and other initiatives.
Operating income was $6.9 million in the second quarter of 2007, compared to $28.9 million for the same period of 2006, reflecting a lower gross profit percentage and the 2007 charges related to restructuring and performance improvement initiatives.
The effective income tax rate for the second quarter of 2007 was 25 percent, excluding the impact of discrete tax items; the effective income tax rate for the second quarter of 2006 was 29.4 percent.
Net cash provided by operating activities was $17.4 million in comparison to $19.1 million in the second quarter of 2006. Capital spending during the second quarter of 2007 was $28.8 million, and totaled $52.1 million for the first six months of 2007.
Construction of the greenfield PMC plant in China and the expansion of our manufacturing capacity in Korea are progressing on plan. As a result, the Company expects capital spending to be consistent with the previously announced plans which call for $160 million of spending in 2007.
Depreciation and amortization were $14.5 million and $1.2 million, respectively, for the second quarter of 2007, and are expected to be approximately $60 million and $5 million, respectively, for the full year.
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Albany International Corp
marketing@alchempro.com
