Albany International Announces Completion of Consultation Process to
Restructure European Machine Clothing Operations
ROCHESTER, N.H. -- May 20, 2013
Albany International Corp. (NYSE:AIN) announced today that its subsidiary,
Albany International France S.A.S., has completed consultations with employee
works councils regarding a proposal to restructure operations at the Company’s
Machine Clothing production facilities in Sélestat and St. Junien. The
proposed restructuring, initially announced in November 2012, is expected to
reduce employment by approximately 200 positions at these locations. The
Company expects most of the workforce reduction to occur during the third
quarter of the 2013.
The Company currently expects to record a restructuring charge of $29-$31
million in the second quarter of 2013, representing estimated future cash
expenditures for severance and social costs for affected employees. This
estimate does not include anticipated cash and non-cash charges associated
with the write-off or write-down of manufacturing equipment, outplacement and
similar programs, and pension curtailment, which cannot presently be
estimated. The Company will provide additional information about these costs
as data becomes available and will record them as restructuring charges in the
period in which they are incurred.
The Company expects that the restructuring actions will lead to a reduction in
annual operating expenses of approximately $10 million. The Company currently
expects to start realizing a portion of these savings beginning in the fourth
quarter of 2013, with the full effect to be realized by the fourth quarter of
This release may contain statements, estimates, or projections that constitute
“forward-looking statements” as defined under U.S. federal securities laws.
Generally, the words “believe,” “expect,” “intend,” “estimate,” “anticipate,”
“project,” “will,” “would,” “should” and similar expressions identify
forward-looking statements, which generally are not historical in nature.
Forward-looking statements are subject to certain risks and uncertainties
(including, without limitation, those set forth in the Company's most recent
Annual Report on Form 10-K or Quarterly Report on Form 10-Q) that could cause
actual results to differ materially from the Company's historical experience
and our present expectations or projections. Forward-looking statements in
this release include, without limitation, statements about the likelihood,
amount, and timing of severance costs, other cash and non-cash charges, and
cost savings related to the announced restructuring. Such statements are based
on current expectations, and the Company undertakes no obligation to publicly
update or revise any forward-looking statements.
About Albany International
Albany International is a global advanced textiles and materials processing
company, with two core businesses. Machine Clothing is the world’s leading
producer of custom-designed fabrics and belts essential to production in the
paper, nonwovens, and other process industries. Albany Engineered Composites
is a rapidly growing supplier of highly engineered composite parts for the
aerospace industry. Albany International is headquartered in Rochester, New
Hampshire, operates 18 plants in 11 countries, employs 4,000 people worldwide,
and is listed on the New York Stock Exchange (Symbol AIN). Additional
information about the Company and its products and services can be found at
Albany International Corp.
John Cozzolino, 518-445-2281
Susan Siegel, 603-330-5866
Kekst and Company for Albany International
Michael Herley, 212-521-4897
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