Xerium Technologies (XRM) Reports Lower Q4 Profit; Continues 'Right-Sizing' Plan - InvestingChannel

Xerium Technologies (XRM) Reports Lower Q4 Profit; Continues ‘Right-Sizing’ Plan

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Xerium Technologies (NYSE: XRM) reported Q4 adjusted EPS of $0.11, versus $0.16 reported last year. Revenue for the quarter came in at $133.77 million, versus $145.19 million reported last year.

Commenting on the quarter, Harold Bevis, Xerium’s President and Chief Executive Officer stated, “The Company is fully underway with its multi-year commitment to increasing sales and EBITDA. The Company is right-sizing its cost structure around its core business. It is also repositioning its production capacity to be lower cost and better serve its customers. The Company has taken specific cost reduction actions to increase 2013 Adjusted EBITDA including the closure of four manufacturing operations and reduction of headcount. We have targeted savings net of reinstated incentive compensation of approximately $12 million in 2013 with a progressive quarterly build up of cost out actions and a carryover into 2014. Specifically, the Company took action against approximately $1.5 million of cost, net of incentive compensation reinstatement, in the first quarter of 2013, compared to the fourth quarter of 2012. The Company is funding and gating its cost reduction activities with internal cash flow. The Company has also kicked off and/or accelerated several new sales growth and new product programs in order to re-establish top-line growth opportunities. These strategic moves will be kept private by Company management for the time being, but these actions are expected to open up another ~$200 million aperture into our served markets.”

For earnings history and earnings-related data on Xerium Technologies (XRM) click here.

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