Cambrex posts increase in profit sales

Cambrex posts increase in profit and sales

12:33 PM, 7th May 2011
Cambrex posts increase in profit and sales
Steven M Klosk, President and CEO, Cambrex.

 

EAST RUTHERFORD, US: Cambrex Corporation reports first quarter results for the period ended March 31, 2011. The sales increased by 9.8 per cent compared to first quarter of 2010. The EBITDA for the company was $ 11 million in the first quarter of 2011, an increase of 21.3 per cent compared to $ 9.1 million in the first quarter of 2010.

The first quarter sales of $ 61.7 million were 9.8 per cent higher than the first quarter of 2010. First quarter of 2011 gross margin increased to 28.3 per cent from 25.8 per cent during the first quarter of 2010, with foreign currency unfavorably impacting gross margin by 2.5 per cent in the first quarter of 2011. Gross margins were positively impacted by higher sales and production volumes and lower production costs, partially offset by lower pricing.

Operating profit increased to $ 5.3 million in the first quarter of 2011 from $ 3.7 million in the first quarter of 2010. The increase in operating profit was driven primarily by higher gross profits partially offset by higher operating expenses as described above.

Net interest expense decreased to $ 0.6 million in the first quarter of 2011 from $ 1.2 million in first quarter of 2010. This decrease is primarily due to the maturing of the company’s higher fixed interest rate swaps in October 2010. Income from continuing operations for the first quarter of 2011 was $ 2.9 million or $ 0.10 per share compared to $ 1.7 million or $ 0.06 per share in the first quarter of 2010.

“We are pleased with our first quarter performance with sales volumes significantly higher year over year. In addition to the increases in sales volumes for some of our larger custom manufacturing products, we continue to see strong orders for our generic APIs. Cambrex Zenara is off to a positive start and has been asked to increase production as part of their customer’s launch of a leading nicotine replacement therapy product in India,” said Steven M Klosk, President and Chief Executive Officer, Cambrex.

Further ahead, Cambrex continues to expect that sales for 2011, excluding the impact of foreign currency, will increase between 3 per cent and 7 per cent versus 2010 and that full year 2011 EBITDA will be between $ 43 and $ 49 million. For 2011, Cambrex Zenara is expected to have revenues in the low to mid single digit millions and a small EBITDA loss.

(C) WOC News

 

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