Capital expenditures and depreciation for the third quarter 2008 were $5.0 million and $5.7 million compared to $10.2 million and $4.9 million in the third quarter 2007, respectively. The decrease in capital spending is largely due to spending on an API purification facility at the Milan facility in the third quarter of 2007 for which the majority of spending has since been completed.
The Company expects that sales, net of the impact of foreign currency, will decline between 3% and 5% in 2008 compared to 2007. Adjusted EBITDA for 2008 is now expected to be between $50 and $53 million.
Restructuring and Strategic Alternatives Costs are expected to be approximately $3.8 million, which includes higher-than expected costs related to the legal entity restructuring completed during the third quarter of 2008 and charges expected during the fourth quarter of 2008 related to additional cost reductions at the Company's corporate headquarters (expected to reduce future administrative expenses by approximately $0.5 million annually). The legal entity restructuring will reduce annual administrative expenses by approximately $0.3 million and will reduce income tax expense in 2008 by approximately $1.0 million. The Company continues to experience delays in sub-leasing the recently closed New Jersey technical center.
For 2008, capital expenditures are expected to be approximately $32 to $34 million and depreciation is expected to be $21 to $22 million.
The Company previously reported that one of the Company's customers recalled a product in the U.S. in March of 2008, and that this would result in a reduction of approximately $6.0 million in revenue compared to original 2008 guidance. The Company continues to expect this level of reduction and the impact of this expectation is included in the full year 2008 guidance discussed above.
The financial information contained in this press release is unaudited,
|SOURCE Cambrex Corporation|
Copyright©2008 PR Newswire.
All rights reserved