Net sales increased $33.4 million, or 13.8 percent compared to the same period last year. Excluding the effect of changes in currency translation rates, net sales increased 9.4 percent.
Gross profit was 34.0 percent of net sales in the third quarter of 2007, compared to 38.4 percent in the same period of 2006. The decrease is principally due to the increases in Cost of Goods Sold from the above-mentioned idle-capacity costs and performance-improvement initiatives and a shift in the sales mix due to the accelerating growth in the emerging businesses.
STG&R expenses were 28.3 percent of net sales in the third quarter of 2007 as compared to 28.6 percent in the third quarter of 2006. STG&R expenses were $78.1 million in the third quarter of 2007, in comparison to $69.5 million in the third quarter of 2006.
The Q3 2007 increase includes $3.1 million related to the effect of changes in currency translation rates and the $4.5 million of expenses noted above related to performance-improvement initiatives. Q3 2006 STG&R expenses were reduced by approximately $2.2 million as a result of adjusting incentive compensation accruals based on Company and stock price performance.
Operating income was $2.2 million in the third quarter of 2007, compared to $19.7 million for the same period of 2006. The reduction was principally due to costs associated with restructuring and performance-improvement initiatives.
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Albany International Corp
marketing@alchempro.com
