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Cambrex Reports Second Quarter 2009 Results
Date:8/4/2009

y impact our production and operating expenses and contributed to our increased profitability during the quarter.

"While our first half results were favorable, our current outlook reflects a weaker second half of the year. Sales volumes, adjusted for foreign currency, are expected to be somewhat negative compared to last year's second half. We continue to see weakness in the custom development sector, particularly where we support our customers' early clinical trial production requirements, and we are seeing price and volume pressure on our generic APIs due to competitive supply chain dynamics. We are on track to introduce new generic APIs beginning in 2010 and we continue to aggressively develop new products in support of our controlled substances and drug delivery initiatives."

Second Quarter 2009 Interest and Tax Expenses

Net Interest Expense in the second quarter 2009 was $1.1 million compared to $0.6 million in the second quarter 2008. The change is due primarily to capitalized interest of $0.3 million in the second quarter of 2009 compared to $0.7 million in the second quarter of 2008.

The Provision for Income Taxes totaled $2.4 million in the second quarter 2009. The effective tax rate was 30.7% in the second quarter 2009 compared to 62.0% in the second quarter 2008. The second quarter 2009 reflects a favorable geographic mix of income compared to the second quarter 2008, and this year's results 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 where there has been a recent history of losses, primarily the U.S.

Second Quarter 2009 Capital Expenditures and Depreciation

Capital expenditures and depreciation for the second q
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SOURCE Cambrex Corporation
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