Cambrex reports fourth quarter and full year 2010 results

EAST RUTHERFORD, US: Cambrex Corporation announces its fourth quarter and full year results for the period ended December 31, 2010. The company has also appointed Shawn Cavanagh as Chief Operating Officer in January 2011. Moreover, Cambrex Zenara began supplying product for the launch of smoking cessation gum in India and received a Certificate of Good Manufacturing Practice (GMP) for its Hyderabad, India facility, following a successful audit, allowing shipment to all EU countries. Cambrex even signed an agreement with a Chinese partner to develop several new generic products in 2011, and Cavanagh will support the company to accelerate new product and strategic growth plans.

Highlights of full year: 

• Reported sales increased by 8.2 per cent, and excluding the impact of foreign currency, sales increased 9.2 per cent compared to fourth quarter 2009.
• Debt, net of cash was $86.3 million at the end of the fourth quarter 2010, an improvement of $4.2 million excluding $19.9 million of M&A related costs and a positive $0.9 million currency impact on foreign cash balances during the fourth quarter.
• 2011 sales are expected to increase 3 to 7 per cent, excluding the impact of currency, and EBITDA is expected to be $43 to $49 million.

Fourth Quarter 2010 results

The fourth quarter 2010 sales of $ 63.5 million were 8.2 per cent higher than the fourth quarter 2009, indicating a sales increase of 9.2 per cent. Operating profit increased to $ 8.4 million in the fourth quarter 2010 from $ 3.7 million in the fourth quarter 2009. Income from continuing operations for the fourth quarter 2010 was $ 5.2 million or $ 0.18 per share compared to a loss of $ 2.8 million or $ 0.09 per share in the fourth quarter 2009.

Research and Development (R&D) expenses increased to $ 2.4 million in the fourth quarter 2010 from $ 2 million in the fourth quarter 2009 primarily due to the March 2010 acquisition of IEP, reduced utilization of certain R&D personnel on revenue-generating custom development projects and the development of new products and technology platforms.

(C) WOC News