Xerium Technologies Reports Second-quarter Loss

7/27/18

By Chris Roush, NC BIZ News

Xerium Technologies Inc., which has agreed to sell itself to an Austrian company, reported a larger second-quarter loss on slightly higher revenues on Thursday.

The Youngsville-based company, which makes machine clothing and roll covers, reported a net loss of $4.3 million, or 26 cents per share, compared to a net loss of $3.4 million, or 21 cents per share, in the second quarter a year ago.

The company’s revenue rose 4.1 percent to $125.3 million in the quarter from $120.3 million in the second quarter of 2017.

“From an operational standpoint, we have experienced strong volumes particularly in our European and Asia Pacific operations with lower sales, due largely to timing, in our North American operations,” said Chief Executive Officer Mark Staton in a statement.

Xerium Technologies stock closed Thursday at $13.31, up 1 cent.

In June, the company agreed to sell itself to Andritz AG, an Austrian plant engineering company with more than 25,000 employees.

Andritz has agreed to pay $13.50 per share for Xerium, a price that is 146 percent higher than what the company was trading at in March when it announced it was reviewing strategic alternatives.

The deal is expected to close in the second half of 2018.

Xerium said it has a sales backlog of $179 million as of June 30, which is $7 million higher than the backlog at the end of the second quarter a year ago.

With 28 manufacturing facilities in 13 countries around the world, Xerium has approximately 2,850 employees.

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