Displaying items by tag: Xerium Technologies

Xerium Technologies, Inc. (NYSE:XRM), a leading global provider of industrial consumable products and services, recently launched SMART(R) Connect Technology, further extending functionality of the company’s patented SMART Technology platform.

SMART Connect now includes seamless connectivity to existing site computer systems with automatic data backup. In addition, SMART Connect’s innovative new mobile monitoring capabilities provide the ability to monitor nip analytics from smartphones and tablets, at anytime, and from anywhere. The system also provides the ability for collaborative review of the analytics with the customers’ and Xerium’s engineers.

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SMART Connect can also estimate a machine’s financial cost savings opportunities by comparing the actual nip conditions to an ideal condition based on key performance parameters.

More information is available about SMART Connect at http://www.xerium.com/SMART.

“We are very proud to release this next generation functionality for SMART Technology,” said Mr. Bill Butterfield, EVP and CTO of Xerium. “We continue to develop this unique platform to deliver more value to our customers, and continue to be excited to see them gain new insights into their complex operations enabling significant improvements to machine performance. SMART Connect technology is revolutionizing the way our customers manage their nipped roll positions in a wide variety of industrial applications. Customers continue to report benefits such as; reduced problems with roll crown issues, improved machine productivity, reduced energy consumption, and better product quality. And even with over 650 SMART Technology systems around the world, we still believe we’re just at the beginning stages for this innovative platform.”

About Xerium (NYSE:XRM)

Xerium Technologies, Inc. is a leading global provider of industrial consumable products and services. Xerium, which operates around the world under a variety of brand names, utilizes a broad portfolio of patented and proprietary technologies to provide customers with tailored solutions and products integral to the production of paper, paperboard, tissue, pulp, building products, nonwoven fabrics, and variety of industrial applications. Xerium products are specifically designed to optimize performance and reduce operational costs. With 27 manufacturing facilities in 13 countries around the world, Xerium has approximately 3,000 employees.

Source: Xerium Technologies, Inc.

Xerium Technologies, Inc.
Steve Cole, This email address is being protected from spambots. You need JavaScript enabled to view it.
Director – Global Marketing

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2013 Xerium Logo CMYK 300dpiXerium Technologies, Inc. (NYSE:XRM), a leading global provider of industrial consumable products and services, today announced the appointment of Mr. Alexander Toeldte to the Company’s Board of Directors.

Mr. Toeldte is currently an Operating Director at Paine & Partners, LLC, a private equity firm. Prior to this, he served as the President, Chief Executive Officer and a Director of Boise Inc. and Executive Vice President at Boise Cascade LLC. Mr. Toeldte's previous experience includes Executive Vice President of Fonterra Co-operative Group and Chief Executive of Fonterra Enterprises; and Chief Executive Officer of Fletcher Challenge Building and Fletcher Challenge Paper. In addition, Mr. Toeldte was a Partner of McKinsey & Company serving in the Toronto, Brussels, Montreal, and Stockholm offices.

Currently, Mr. Toeldte is the Chairman of the Board of Jitasa, Inc., and is on the Board of Wevorce Inc., each of which are privately-held companies. 

About Xerium (NYSE:XRM)

Xerium Technologies, Inc. is a leading global provider of industrial consumable products and services. Xerium, which operates around the world under a variety of brand names, utilizes a broad portfolio of patented and proprietary technologies to provide customers with tailored solutions and products integral to the production of paper, paperboard, tissue, pulp, building products, nonwoven fabrics, and variety of industrial applications. Xerium products are specifically designed to optimize performance and reduce operational costs. With 27 manufacturing facilities in 13 countries around the world, Xerium has approximately 3,000 employees.

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2013 Xerium Logo CMYK 300dpiXerium Technologies, Inc. (NYSE:XRM), a leading global provider of industrial consumable products and services, has announced that Harold Bevis, President and CEO and Cliff Pietrafitta, Chief Financial Officer will meet with the investment community at the Bank of America Paper, Packaging and Builders Conference December 9-10, 2015 at The Four Seasons Hotel, 200 Boylston Street in Boston, MA.

Investors and interested parties are invited to review the company’s latest investor presentation by visiting the Xerium website at www.xerium.com under the Investor Relations section.

About Xerium (NYSE:XRM)

Xerium Technologies, Inc. is a leading global provider of industrial consumable products and services. Xerium, which operates around the world under a variety of brand names, utilizes a broad portfolio of patented and proprietary technologies to provide customers with tailored solutions and products integral to the production of paper, paperboard, tissue, pulp, building products, nonwoven fabrics, and variety of industrial applications. Xerium products are specifically designed to optimize performance and reduce operational costs. With 27 manufacturing facilities in 13 countries around the world, Xerium has approximately 3,000 employees.

Source: Xerium Technologies, Inc.

Xerium Technologies, Inc.
Cliff Pietrafitta, Chief Financial Officer
919-526-1444
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2013 Xerium Logo CMYK 300dpiXerium Technologies, Inc. (NYSE:XRM) — Xerium has just announced the hiring of Mr. John Schauer to the position of Product Manager – Nonwovens Market. Mr. Schauer comes to Xerium with 30 years of management and technical leadership experience and most recently held the role of North America Nonwoven Manager for a one of Xerium’s chief competitors in this market.

Mr. Schauer will be responsible for leading Xerium’s North America Nonwovens business plan as well as coordinating Xerium’s global efforts. John will also support our active engagement with The Nonwovens Institute at North Carolina State University.

David Pretty, Xerium President of North America and Europe, said, “The nonwoven market is an important part of Xerium’s strategic plan. Xerium is a leading global supplier of technically advanced belts, fabrics, aprons, and roll cover technology in this market. Our newest Huycon belts have proven successful on some of the world’s most demanding nonwoven lines. As a result, our Gloggnitz, Austria facility was recently expanded to keep pace with the increased demand in the Americas, Europe, and Asia. John Schauer’s seasoned leadership is a significant step forward for Xerium to further advance in this growing market.”

John Schauer said, “I am excited to join Xerium and am thankful to be leading the value creation platform for North America. I look forward to creating value for Xerium and its customers. Xerium is well positioned to achieve its strategic objectives.”

About Xerium

Xerium Technologies, Inc. (NYSE:XRM) is a leading global provider of industrial consumable products and services. Xerium, which operates around the world under a variety of brand names, utilizes a broad portfolio of patented and proprietary technologies to provide customers with tailored solutions and products integral to production, all designed to optimize performance and reduce operational costs. With 27 manufacturing facilities in 13 countries around the world, Xerium has approximately 3,000 employees.

Source: Xerium Technologies, Inc.

Xerium Technologies, Inc.
Cliff Pietrafitta, 919-526-1400
Chief Financial Officer
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Xerium Technologies, Inc. (NYSE:XRM), a leading global provider of industrial consumable products and services, has announced that it has completed the renovation program at four machine clothing plants that took over two years to design, construct, equip and commission. The Company is aggressively pursuing growth in its popular products, growing grades and regions that are outpacing global industry growth. This global renovation program, involving facilities in North America, South America, Europe and Asia reconfigures its 10-plant machine clothing footprint to serve its customers more effectively with better lead times and global availability of its innovative and rapidly-growing portfolio of patented technology. Key highlights of these projects:

North America – the expansion of the Kentville, Canada forming fabric plant to manufacture woven dryer fabrics in North America for the first time in over a decade. The expansion transitions Xerium from a position of being competitively disadvantaged in dryer fabrics to improved responsiveness to customer quality and delivery expectations. The existing sales force can now leverage relationships in complementary products to accelerate penetration in this currently underserved market. The commissioning of this newly expanded facility and the installed assets was completed in Q3 2015.

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South America – the renovation and expansion of the Piracicaba, Brazil plant to manufacture spiral dryer fabrics. Xerium previously manufactured spiral dryer fabrics at its smaller and higher cost Argentina plant. Upon closure of this facility, Xerium made the strategic decision to purchase all new production equipment and modernize its product technology. This initiative, the largest of the four, will enable Xerium to offer both higher quality products and shorter lead times, while operating under a significantly more advantageous cost structure and was fully operational in Q3 2015.

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Europe – the expansion of the Gloggnitz, Austria plant to produce belts and fabrics for nonwoven fabrics machines. Xerium has installed special-purpose machines, which will more than double its global capacity for its nonwoven products portfolio. Concurrent with this expansion, Xerium enhanced its product technology to deliver higher levels of performance on the most modern nonwoven production lines and will provide global support for a variety of product types from this site. This expansion further leverages one of Xerium’s most cost competitive and high quality facilities. The expansion is on schedule to reach its full production rate capability by year-end 2015.

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Asia – the expansion of the Asahi, Japan plant to produce Xerium’s most advanced forming fabrics for containerboard machines. Xerium has historically manufactured machine clothing for large containerboard machines in its European plants and shipped them to Asia. This investment enables Xerium to serve the Japanese and the entire Asian markets locally with shorter lead times, significantly lower shipping costs to the customer while delivering Xerium’s most modern product portfolio. The commissioning is underway and remains on schedule to reach its full production rate capability by year-end 2015.

Mr. Harold Bevis, President and CEO of Xerium, commented regarding these business transformation projects; “Xerium is committed to quantifiably increasing profits of its customers. These investments enable Xerium to strengthen our partnerships by being closer to its customers with transformative innovation, on-site product experts, and in-region short lead times. The pace of technical breakthrough requests from our customers continues to quicken. We must have shorter product life cycles and faster supply chains to compete and win. Our products and services make a difference for owners of sophisticated large machines, and these machines are dispersed globally. We are very optimistic that these machine clothing programs will be another successful step in our transformation to deliver better financial and operational results and continue to improve our growing stature of supplier of choice in the most attractive regional markets. We do not expect to achieve sales growth by waiting for, and then riding, a global GDP growth cycle. With uncertain global economic conditions, we are strategically deploying our people, innovation, and know-how into expected growth regions.”

ABOUT XERIUM

Xerium Technologies, Inc. (NYSE:XRM) is a leading global provider of industrial consumable products and services. Xerium, which operates around the world under a variety of brand names, utilizes a broad portfolio of patented and proprietary technologies to provide customers with tailored solutions and products integral to production, all designed to optimize performance and reduce operational costs. With 27 manufacturing facilities in 13 countries around the world, Xerium has approximately 3,000 employees.

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2013 Xerium Logo CMYK 300dpiXerium Technologies, Inc. (NYSE:XRM), a leading global provider of industrial consumable products and services, has announced the permanent consolidation of the roll manufacturing operations being conducted in Middletown, Virginia plant location into other Xerium roll plants. This closure will not affect the operations & employees in Xerium’s Global Rolls R&D Center in Middletown. In fact, it will give the R&D team more room to accomplish product development and prototypes on next generation products. The timeline to complete this process is by the end of March of 2016.

“There are very healthy and growing segments of the North American market and Xerium has an outstanding geographical network of North American rolls locations to serve these customers out of its plants in Neenah, WI; Griffin, GA; Ruston, LA; Concord, NH; Kelso, WA and Queretaro, MX. Unfortunately, the Middletown location is not uniquely near many customer mill locations and also has very limited service capabilities. All of the production accomplished in Middletown, VA will be moved to Xerium’s plants in Neenah, WI; Griffin, GA; Ruston, LA and Concord, NH. The equipment in the Middletown, VA plant will primarily be moved outside North America to other continents that are growing and in need of additional equipment.” said Harold Bevis, Xerium’s President and Chief Executive Officer.

“These changes are a Xerium portfolio resource allocation decision and are not reflective of any performance issues in Middletown, VA. The decision to consolidate the Virginia operation is regretful but logically straight forward. The North America market continues to downsize and reformulate due to the permanent elimination of graphical grade paper production. While unfortunate, it is an ongoing market process that is far from over. We fully expect to continue realigning our operations in this environment. As with any action that affects our employees, the need to close this facility comes with great disappointment. We will work diligently to assist affected employees by helping them transition to other internal opportunities where available or secure employment elsewhere.” said Harold Bevis, Xerium’s President and Chief Executive Officer.“

ABOUT XERIUM

Xerium Technologies, Inc. (NYSE:XRM) is a leading global provider of industrial consumable products and services. Xerium, which operates around the world under a variety of brand names, utilizes a broad portfolio of patented and proprietary technologies to provide customers with tailored solutions and products integral to production, all designed to optimize performance and reduce operational costs. With 27 manufacturing facilities in 13 countries around the world, Xerium has approximately 3,000 employees.

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Wednesday, 02 September 2015 08:54

Xerium Celebrates 1000th Formsoft Tissue Forming Fabric

Xerium Technologies, Inc. (NYSE:XRM), a leading global provider of industrial consumable products and services, recently celebrated the shipment of its 1000th Formsoft tissue forming fabric at its Kentville, Canada plant. The globally successful and patented Formsoft technology has enabled tissue makers to produce their products with higher quality and at increased efficiency. Formsoft is one of the fastest growing products the company has ever launched into the market.

“Formsoft continues to provide our customers with excellent machine speeds and outstanding sheet softness”

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“Formsoft continues to provide our customers with excellent machine speeds and outstanding sheet softness,” said Mr. Bill Butterfield, EVP and CTO of Xerium. “Like our other innovations, Xerium has developed Formsoft technology to benefit its customers by lowering their operational cost while improving operational performance and overall efficiency. This unique tissue fabric, with patented warp and weft structure, consistently delivers top drainage performance for a stronger, yet softer, tissue product. It combines improved sheet forming and fiber retention benefits with high dimensional stability and life potential resulting in optimized tissue machine runnability.”

ABOUT XERIUM

Xerium Technologies, Inc. (NYSE:XRM) is a leading global provider of industrial consumable products and services. Xerium, which operates around the world under a variety of brand names, utilizes a broad portfolio of patented and proprietary technologies to provide customers with tailored solutions and products integral to production, all designed to optimize performance and reduce operational costs. With 27 manufacturing facilities in 13 countries around the world, Xerium has approximately 3,100 employees.

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xerium logo largeXerium Technologies, Inc. (NYSE:XRM), a leading global provider of industrial consumable products and services,  has announced that Harold Bevis, President and CEO and Cliff Pietrafitta, Chief Financial Officer will present at the 2015 Sidoti Emerging Growth Conference on Wednesday, September 2, 2015 from 11:20 – 11:55 AM EDT at the Marriott Marquis Hotel, New York, NY.

Investors and interested parties may listen to the live webcast of this presentation by clicking here or visiting the Xerium website at www.xerium.com under the Investor Relations section at the time of the presentation.

About Xerium (NYSE:XRM)

Xerium Technologies, Inc. is a leading global provider of industrial consumable products and services. Xerium, which operates around the world under a variety of brand names, utilizes a broad portfolio of patented and proprietary technologies to provide customers with tailored solutions and products integral to the production of paper, paperboard, tissue, pulp, building products, nonwoven fabrics, and variety of industrial applications. Xerium products are specifically designed to optimize performance and reduce operational costs. With 27 manufacturing facilities in 13 countries around the world, Xerium has approximately 3,100 employees.

Source: Xerium Technologies, Inc.

Xerium Technologies, Inc.
Cliff Pietrafitta, 919-526-1444
Chief Financial Officer
This email address is being protected from spambots. You need JavaScript enabled to view it.

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Awarding ceremony for best basic studies in Engineering Paper Technology at Munich University of Applied Sciences

For the sixteenth time, Xerium Technologies Inc., one of the world's leading suppliers of paper machine clothing and roll technology, awarded its 1500-euro Huyck.Wangner talent prize in conjunction with the closing ceremonies held on July 31 at the Munich University of Applied Sciences. The grant was presented together with Prof. Dr. Stephan Kleemann, head of the school's Master of Engineering in Paper Technology program. Georg Goldbrunner was the recipient of this year's traditional prize for best performance in the basic study period.

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From left to right:Ernst Kerschhofer, Vice President Sales & Services Xerium EMEA, this year's talent award winner Georg Goldbrunner and Professor Stephan Kleemann, Munich University of Applied Sciences, Head of the Process Engineering for Paper and Packaging program

After graduating from secondary school in 2011, the 24-year-old, who stems from Weilheim, Upper Bavaria, took a year off to backpack across Australia, before enrolling in a paper technologies apprenticeship program at UPM's Schongau paper mill in 2012. After completing his apprenticeship in 2014, he began a work-study program at the mill, one of the largest and most modern papermaking companies in Europe. In parallel, he enrolled in the Engineering Paper Technology program at the Munich University of Applied Sciences.

Receiving the Huyck Wangner Talent Prize 2015 reflects not only his outstanding performance at the top of his basic studies, but also his passion for and huge interest in paper and papermaking. Georg Goldbrunner is also a battered fan of the traditional TSV 1860 soccer club in Munich. Toughened by the performance of the Löwen (lions, as the team is known locally), which in recent years has had its ups and downs and demanded a lot of staying power from its fans, he remains optimistic about his future in spite of gloomy predictions about the future of paper, and is full of conviction as he plugs away at his aim to become a papermaker.

After all, the unanimous view regarding future career prospects for budding paper engineers expressed by graduates, professors, industry and association representatives at the closing ceremonies last July was: "Outstanding!" In fact, there was an even stronger call than usual for more new recruits, who are essential to the paper industry's future. Here is what Ernst Kerschhofer, Vice President Sales & Services Xerium EMEA, had to say as he handed over the prize: "Paper is and will remain a modern, sustainable product, and blends wonderfully with the new digital world. It is well worth the effort to keep it fit for the future by bringing new knowledge and ideas to the table." In closing, he thanked Professor Kleemann, who together with his team is creating ideal conditions for ensuring a promising future for up and coming paper engineers. The development of the Master's program, "Engineering in Paper Technology", holds special promise. It is currently a one-of-a-kind dual-study program offered in the English language in close collaboration with American universities and is recognized throughout Europe. This year for the first time, the number of participants graduating with a Master's degree (14) was even higher than those receiving a Bachelor's (12).

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Xerium Technologies, Inc. (NYSE:XRM), a leading global provider of industrial consumable products and services, announced its Q2 2015 results.

  • Adjusted EBITDA improved to $28 million, representing a margin improvement of 170 basis points compared to Q2 2014 and the 5th consecutive quarter of improved Adjusted EBITDA margins.
  • Gross margins have improved over the last 11 consecutive quarters.
  • SG&A at constant currency declined 4% sequentially.
  • Updated full year 2015 guidance to be similar to 2014, reflecting near-term newsprint and graphical grade decline trends and weak euro.
  • Sales growth investment programs remain on track with 8 facilities beginning production or ramping up production capabilities in the second half of 2015 coupled with over 39 new patented products.

2013 Xerium Logo CMYK 300dpiNet sales for Q2 2015 were $123.1 million, an increase of $2.1 million, or 1.7%, over net sales of $121.0 million for Q1 2015. On a constant currency basis, net sales increased $3.6 million or 2.7% over Q1 2015 net sales, primarily driven by an increase of 3.2% in machine clothing net sales and an increase of 1.8% in rolls net sales. Constant currency SG&A declined by $1.3 million, or 4.1% to $30.4 million in Q2 2015 from $31.7 million in Q1 2015. Q2 2015 Adjusted EBITDA increased to $28.0 million, up 6.9% from $26.2 million in Q1 2015, driven primarily by the increase in sales volume and the decline in SG&A, partially offset by FX losses in Q2 2015 related to the revaluation of non-functional currency balances. See "Non-GAAP Financial Measures" and "Segment Information" below.

Net sales for Q2 2015 decreased by $(3.9) million, or (2.8)% compared to Q2 2014, on a constant currency basis, primarily driven by the decline in the printing, writing and newsprint markets in North America and lower mechanical services sales in North America. See "Non-GAAP Financial Measures" and "Segment Information" below.

Q2 2015 gross profit was $49.4 million, or 40.2% of net sales, compared to $55.4 million, or 39.6% of net sales in Q2 2014. Machine clothing gross margin improved to 43.9% (excluding $0.9 million of one-time Kunshan, China startup costs) in Q2 2015 from 41.1% in Q2 2014. These improvements were a result of positive currency effects that were partially offset by unfavorable fixed cost absorption. Rolls and service gross margin decreased slightly to 36.0% (excluding $0.2 million of Corlu, Turkey one-time start-up costs) in Q2 2015, from a gross margin of 36.5% in Q2 2014, primarily due to unfavorable currency effects.

SG&A expenses were $30.4 million, or 24.7% of net sales, in Q2 2015, down from Q2 2014 SG&A expenses of $35.4 million, or 25.4% of net sales, primarily due to favorable currency effects and lower management incentive costs.

Q2 2015 basic earnings per share were $(0.05) per share versus Q2 2014 basic earnings per share of $0.05 per share. Excluding non-recurring items such as restructuring costs, plant startup costs, foreign currency gains/(losses) and one-time tax reserve charges, basic adjusted earnings per share were $0.37 in Q2 2015, compared to $0.43 in Q2 2014. See "Basic Adjusted Earnings Per Share" below.

CEO Comments

“Despite the current difficult industry trends, our Q2 2015 results demonstrated that our initiatives to improve our cost structure continue to deliver both sequential and YOY improvements in Adjusted EBITDA margins, gross margins and SG&A rates. As our sales growth investment programs come on line, we will begin to generate sales growth despite the decline of graphical grade production,” said Harold Bevis, President and CEO of Xerium Technologies, Inc. "Our 2 1/2 year $87 million sales growth investment program is nearing completion. We have completely renovated our products and factories and it has led to many patentable inventions. The second half of 2015 is a turning point for Xerium, which will enable us to expand our ability to gain sales in the competitive marketplace. We are excited about the progress we are making and expect positive financial returns as we ramp up production in the second half of 2015 and into 2016."

2015 Outlook

During the second quarter of 2015, the machine clothing and rolls sales environment was more challenging than we had anticipated due to customer shutdowns and curtailments. Consequently, we expect our full-year Adjusted EBITDA will likely be comparable to last year's Adjusted EBITDA, due to this quarter's results as well as our expectation for the remainder of the year. We view this as a temporary dynamic given our multi-year sales growth investments are in the early stages of gaining traction and will increasingly augment our sales growth. We expect the incremental earnings from our sales growth investment programs to more than offset the permanent market declines in graphical paper production.

To further increase our profit rates, we are continuing to take costs out of the business. This includes the recent closure of a machine clothing facility in Warwick, Quebec, Canada. The cost structure at this plant was operating at almost twice the level of our low-cost facilities. We still have other facilities with very large cost reduction opportunities. Beyond our improving cost structure and new geographic footprint, we will also benefit from new product introductions. Currently, we have 425 issued patents and 97 pending patents. Additionally, as our capital expenditures begin to decline, we will begin to pay down our debt with the surplus cash flow.

Sales Growth Investment Program Update

The following sales growth investment programs, totaling $87 million, involve a full gamut of initiatives that will enable Xerium to deliver significant incremental Adjusted EBITDA growth and further increase our earnings potential. Most of our spending is behind us and these multi-year programs are coming on line in the second half of 2015.

$71 Million Global Machine Clothing Sales Growth Investment Program

On July 22, 2015, we announced that our Kunshan, China press felt plant began production. This two year, $47.8 million greenfield press felt plant, is located in the center of the largest paper-making region in the world. This facility significantly improves Xerium's competitive positioning, from both a lead time and cost perspective, enabling Xerium to more closely partner with customers who were previously served from our European plants through a lengthy and costly supply chain. Xerium will conduct business in local currency and local languages and will be able to service the largest pulp, paper, paperboard, and tissue machines in the world, as the main machine in the plant is over 15 meters wide. For some press felt designs, Xerium will be able to make three pieces simultaneously - a first for the Company.

Our Piracicaba, Brazil expansion project remains on track to be completed in late 2015, which after three years and a $9.1 million investment (includes $2.7 million in sales growth capital investment and $6.4 million in restructuring capital investment), will have been expanded to offer higher quality dryers, increased exports for spiral and woven dryers, forming fabrics and non-woven fabrics. In addition, this expansion will result in significantly shorter lead times to our customers, and will enable us to consolidate three mid-sized South American plants into one low-cost plant in Piracicaba, Brazil that is globally competitive.

We continue to remain on schedule with our other second half 2015 initiatives at Kentville, Nova Scotia ($4.4 million investment); Gloggnitz, Austria ($12.9 million investment); and Asahi, Japan ($3.2 million investment). Xerium is expanding its product lines and capacity in these plants to better enable it to grow sales. These plants have either recently been or will soon be commissioned and will ramp up their respective production capabilities throughout the second half of 2015.

$16 Million Global Rolls and Service Sales Growth Investment Program

On July 16, 2015, we announced that our Corlu, Turkey Rolls facility began production. This two year $4.3 million greenfield rolls and service plant is in a key emerging market. This facility is a new regional hub, serving customers in Turkey, Southeast Europe and the Middle East. Xerium has conducted business in these regions for many decades as an exporter, and now will serve as a local low-cost provider with shortened lead times to customers. The plant has one of the largest grinding machines in the region and was built to handle rolls up to 80 metric tonnes in weight. For the first time ever, customers in this under-served region will receive locally provided and locally optimized state-of-the-art rubber extrusion and polyurethane roll covering technology.

While the award-winning Ruston, LA facility completed its expansion late last year ($2.1 million investment); Griffin, GA ($4.1 million investment) and Neenah, WI ($5.5 million investment) expansions will all be completed in the second half of 2015. These facilities will expand Xerium's product lines and capacity to better enable it to grow sales.

Collectively, these programs compliment our legacy business model and enable Xerium to replace sales from declining graphical business segments. We will be close to key customers, with short lead times and low costs. Additionally, we are broadening our product and service offerings to give us a wider aperture into new markets and new machines types. These are key turning points for Xerium's business.

CFO Comments

EVP and Chief Financial Officer, Cliff Pietrafitta said: "During the second quarter of 2015 we continued to take costs out of the business with quarterly gross savings of $5.5 million. We spent approximately $21.7 million of cash on capital expenditures and restructuring costs in Q2 2015 and we expect to spend approximately $50 million in 2015 on capital expenditures and between $8 and $10 million on restructuring costs for the entire year of 2015.

As of June 30, 2015, we had an aggregate of $30.3 million available for additional borrowings under our Credit Facility and smaller lines of credit and our cash balances totaled $9.2 million. Q2 2015 free cash flow (defined as cash-flow from operations less capital expenditures) decreased $(3.3) million to $(9.1) million from $(5.8) million in Q2 of 2014, primarily as a result of increased capex spend and Q2 2015 sales decreases.

Net debt (which is defined as total debt less cash) increased to $473.4 million in Q2 2015 from $464.7 million in Q1 2015, as a result of increased debt outstanding. Our net debt leverage ratio was 4.1x in Q2 2015, substantially the same as 4.0x in Q1 2015. We expect our Net debt and leverage to improve in the later part of 2015, as free cash flow becomes positive and we begin to pay down debt.

Trade working capital decreased $8.4 million to $123.2 million at June 30, 2015 from $131.6 million at December 31, 2014, primarily as a result of favorable currency impacts. See "Trade Working Capital Information" and "Non-GAAP Financial Measures" below.

Our effective income tax rate for Q2 2015 was 117.7% compared to 75.3% in Q2 2014. Excluding the effects of restructuring and a non-recurring tax reserve adjustment, our effective tax rate was 63.2%, compared to 39.2% in Q2 2014, primarily due to the mix of earnings in tax paying jurisdictions versus earnings in non-tax paying jurisdictions.

Please follow this link to the original press release with figure tables  

About Xerium Technologies

Xerium Technologies, Inc. (NYSE:XRM) is a leading global provider of industrial consumable products and services. Xerium, which operates around the world under a variety of brand names, utilizes a broad portfolio of patented and proprietary technologies to provide customers with tailored solutions and products integral to production, all designed to optimize performance and reduce operational costs. With 27 manufacturing facilities in 13 countries around the world, Xerium has approximately 3,100 employees.

Source: Xerium Technologies, Inc.

Xerium Technologies, Inc.
Cliff Pietrafitta, 919-526-1444
Investor Relations
This email address is being protected from spambots. You need JavaScript enabled to view it.

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