Operating Profit increased to $7.3 million in the second quarter of 2011 from $6.9 million in the second quarter of 2010. The increase in Operating Profit was driven primarily by higher sales volumes and lower production costs partially offset by lower pricing and unfavorable foreign exchange.
Net Interest Expense decreased to $0.6 million in the second quarter of 2011 from $1.2 million in the second quarter of 2010. This decrease is primarily due to the maturing of the Company's higher fixed interest rate swaps in October 2010.
The Provision for Income Taxes totaled $1.9 million in the second quarter of 2011. The Company's effective tax rate has been and is expected to remain highly sensitive to the geographic mix of income due to the Company's inability to recognize tax benefits where there has been a recent history of losses, primarily in the U.S.
Income from continuing operations for the second quarter of 2011 was $4.8 million or $0.16 per share compared to $3.7 million or $0.12 per share in the second quarter of 2010.
Capital expenditures and depreciation for the second quarter of 2011 were $3.0 million and $5.8 million compared to $2.4 million and $5.2 million in the second quarter of 2010, respectively.
Steven M. Klosk, President and Chief Executive Officer, said, "We are pleased with our second quarter and year to date performance with sales volumes significantly higher year over year. Similar to the first quarter, we saw increases in revenues for some of our larger custom manufacturing products and continued strong orders for our generic APIs. Although profit margins were negatively impacted by foreign exchange, tiered pricing arrangements and production inefficiencies at one of our plants, a continued focus on cost reductions helped mitigate thos
|SOURCE Cambrex Corporation|
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