Albany International operating income improves in Q3
22 Oct '05
2 min read
New York based largest cloth maker Albany International Corp reported third-quarter net income per share of $0.58, after tax-related effects that reduced earnings by $0.09 per share. In the third quarter of 2004, net income per share was $0.33, after net income was reduced by restructuring charges of $0.06 per share and a tax valuation allowance of $0.03 per share.
In the third quarter of 2005, the Company reduced its annual estimated tax rate from 30 percent to 28 percent. Had the 28 percent tax rate been in place at June 30, 2005, year-to-date earnings per share through that period would have been $0.03 higher than reported. The results for the third quarter of 2005 also included a charge of $0.12 per share related to the repatriation of undistributed foreign earnings. The combined impact of these two effects was a reduction in earnings per share of $0.09.
Third-quarter net sales increased $19.5 million, or 8.7 percent compared to the same period last year. Excluding the effect of changes in currency translation rates, net sales increased 6.5 percent. Gross profit was 41.1 percent of net sales in the third quarter of 2005, compared to 39.2 percent in the third quarter of 2004. The increase in gross profit as a percentage of net sales is due principally to higher net sales and the benefits derived from cost reduction initiatives.
Selling, technical, general, and research expenses increased 9.0 percent compared to the same period last year and increased 7.6 percent excluding the effect of changes in currency translation rates. The increase is due principally to payments expected to be made under the Company's annual and long-term incentive bonus plans due to improved operating results and the increase in value of the Company's common stock. A portion of the increase is also related to compensation paid to the Company's new President, including an initial cash bonus.
marketing@alchempro.com
