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Cambrex Reports First Quarter 2009 Results
Date:5/5/2009

. We are focused on developing our growing portfolio of products and establishing new customer relationships in support of our controlled substances and drug delivery initiatives. I am especially pleased that we were able to generate strong year-over-year increases in revenues from controlled substances.

"During the first quarter, we managed production and inventory levels in order to respond to certain reductions in customer demand schedules for the balance of 2009 compared to earlier forecasts. Our generic APIs continue to be under price and volume pressure as the competitive environment drives cost reductions throughout the supply chain. To combat this, we are working on 14 new generic APIs, and expect to benefit from the introduction of some of these new products starting in 2010."

First Quarter 2009 Interest and Tax Expenses

Net Interest Expense in the first quarter 2009 was $1.2 million compared to $0.7 million in the first quarter 2008. The change is due primarily to capitalized interest of $0.2 million in the first quarter of 2009 compared to $0.6 million in the first quarter of 2008.

The Provision for Income Taxes totaled $2.5 million in the first quarter 2009. The effective tax rate was 34.7% in the first quarter 2009 compared to 38.9% in the first quarter 2008. The first quarter 2009 benefited from a recently enacted reduction in tax rates in Sweden. The Company's effective tax rates have been and are expected to remain highly sensitive to the geographic mix of income due to the Company's inability to recognize tax benefits for U.S. GAAP purposes in certain jurisdictions where there has been a recent history of losses, primarily the U.S.

First Quarter 2009 Capital Expenditures and Depreciation

Capital expenditures and depreciation for the first quarter 2009 were $2.8 million and $4.7 million compared to $10.2 million and $5.1 million in
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SOURCE Cambrex Corporation
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