This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Xerium Technologies' CEO Discusses Q3 2011 Results - Earnings Call Transcript

You can see from our decline in margins that while we have continued to hammer away on our structure, actually increasing sales per employee by 6.6% in Q3 versus last year's Q3 and worked hard to pass along as much of our cost increases as we can, we've not been able to offset all of the pressures with either cost reductions or increased pricing. I expect this pressure will evade slightly, with decline in oil prices but the lag time between oil prices at the wellhead and the price of yarn seems to be about 9 months. Rubber, the other major commodity we purchased, has seen no decline in pricing and it is negatively impacting our roll cover businesses.

Our margins are also impacted by our increasing revenue derived from emerging markets such as Asia.

In 2005, only 12.6% of our revenue came from Asia. In contrast, through Q3, as you can see on Slide 6, 18.6% of our 2011 revenue has been derived from Asia. This growth is the result of our strategic initiative to increase our revenue in this fast growing market to increase customer engagement by expanding our sales and applications engineering resources resident in the region, while utilizing our existing factories to produce the products.

In 2005, most of our Asian revenue came from Japan, Korea and Australia. Now a meaningful percentage comes from China and Indonesia. Well, this is a great business and we're happy to have it as the developed markets remain in the doldrum. Because we import into the region from higher cost factories elsewhere in the world and have to absorb much of the freight and logistic expense, our margins are lower from these sales than our realized for the same or similar products in the mature markets.

Read the rest of this transcript for free on seekingalpha.com

3 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG

Markets

DOW 18,001.90 +289.24 1.63%
S&P 500 2,087.54 +26.52 1.29%
NASDAQ 4,946.3920 +55.1730 1.13%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs