Xerium Technologies Inc., a leading global manufacturer of industrial textiles and roll covers used primarily in the paper production process, announced the results of its operations for the quarter ended September 30, 2012.
Compared to the second quarter of 2012, net sales decreased 1.6%, or 1.0% on a constant currency basis to $134.2 million in the third quarter of 2012. On a constant currency basis, net sales of machine clothing increased 1.4%, representing the second straight quarter of volume growth.
On the same constant currency basis, net sales of roll covers decreased 5.3%. The flow through effect of the sales decline was the primary reason for a 3.9% decrease in Adjusted EBITDA from Q2 to Q3. It declined to $24.4 million in the third quarter of 2012 from $25.4 million in the second quarter of 2012.
Compared to the third quarter of 2011, net sales decreased 9.4%, or 4.4% on a constant currency basis to $134.2 million, primarily as a result of the decline in Europe. Again, the flow-through effect of this sales decline is the primary driver of a 14.7% decrease in Adjusted EBITDA to $24.4 million in the third quarter of 2012 from $28.6 in the third quarter of 2011.
Year to date, net sales decreased 8.3% or 4.3% on a constant currency basis, to $405.0 million from $441.8 million, contributing to a decrease in Adjusted EBITDA of 19.2% to $68.6 million in 2012 from $84.9 million in 2011.
The Company continued its debt reduction program during the quarter with additional net debt retirement of $5.7 million. On a year to date basis, net debt has been paid down $20.6 million and stands at $447.8 million as of September 30, 2012.
