Alliance One International Reports Improved Nine Month Operating Income
MORRISVILLE, N.C., Feb. 8 /PRNewswire-FirstCall/ -- Alliance One International, Inc. (NYSE: AOI) today announced results for its third fiscal quarter ended December 31, 2009.
Third Quarter Results
For the nine months ended December 31, 2009, Operating Income increased $16.3 million to $179.3 million driven by stable revenues and reduced direct cost compared to the prior year. For the third quarter ended December 31, 2009, the Company reported net income of $47.3 million, or $0.53 per basic share, compared to net income of $59.5 million, or $0.67 per basic share last year. Additionally, for the nine months ended December 31, 2009, the Company reported net income of $60.3 million, or $0.68 per basic share, compared to net income of $95.1 million or $1.08 per basic share for the same period of the prior fiscal year. The year to date results were achieved despite incurring a one time $40.4 million pre-tax debt retirement expense, of which $23.5 million was cash cost during the period, resulting from the July- August 2009 debt refinancing, versus $1.0 million last year.
Robert E. Harrison, Chief Executive Officer, said, "Volumes and sales were in line with our expectations, and year to date operating margin remained strong despite some third quarter slippage, driven by our global operations, which have done a good job of controlling costs. Additionally, the global debt markets have improved further, which should help short term borrowing costs for the remainder of this year and next, while US dollar volatility versus many currencies that impact our costs, remains challenging."Looking forward, our order book is solid, although the operating environment will remain dynamic. Global production for the next crop cycle is currently stable, though recent flooding in Brazil and dryer weather in Malawi will impact those markets. Importantly, our customer centric strategy encompasses expense control, while investing for the future where appropriate returns exist, and is critical to continued plan execution and enhanced shareholder returns. We are excited about our business and its future as we drive hard to achieve new milestones. Mr. Harrison concluded, "As we look ahead, hopefully to a more stable global economy, we will begin to focus on reducing our leverage again, while managing working capital and capital expenditures to maximize shareholder value. Our debt refinancing during the second quarter has significantly extended long term debt maturities and reduced financing risk due to the onslaught of refinancing activities that we believe will be occurring in the high yield markets over the next four years, allowing management to focus on further enhancing the business."
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