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Xerium results please Wall Street

Xerium Technologies, which emerged from a quick trip through bankruptcy in May, returned to profitability in the fourth quarter.

The Raleigh-based company makes industrial products used to produce paper. It has 31 manufacturing facilities in 14 countries and employs about 3,400 people worldwide, including about 80 in the Triangle.

Net sales for the final quarter of 2010 rose to $144.6 million, up 9.2 percent from the same period a year earlier. Excluding currency fluctuations, sales increased 11.6 percent.

Court approves Xerium reorganization

Xerium Technologies won court approval for its prepackaged reorganization plan and expects to exit bankruptcy protection by the end of the month.

The Raleigh-based company also reported first quarter net sales of $135 million, up 15.9 percent from a year earlier. Xerium produces equipment used to make paper and has been hit hard by the global recession.

"We are only a few steps away from completing our financial reorganization," CEO Stephen Light told analysts and investors on a conference call this morning.

The company also disclosed it's in discussions with a Chinese manufacturer that could expand Xerium's foothold in Asia.

Xerium, which employs more than 3,000 people worldwide, filed for bankruptcy protection at the end of March. As part of the reorganization, the company's debt will be reduced to about $410 million from $620 million. Also, Xerium's existing shares will be cancelled and replaced with new stock.

Xerium's shares rose 3 cents today to $1.20. The stock has more than doubled since December, but traded above $8 two years ago.

Xerium shares face delisting from NYSE, again

Xerium Technologies, which makes equipment for the papermaking industry, reported today that its shares face delisting from the New York Stock Exchange, again.

The Youngsville-based company was first notified last December by the NYSE that its shares didn't meet minimum listing requirements. Xerium avoided delisting partly because its stock rose above $1 in June.

The stock closed below $1 again on Nov. 6, and hasn't recovered. Today, the stock fell 2 cents to close at 65 cents.

Delisting would force Xerium to find another market for its stock to trade. And analysts and investors tend to shun stocks that are delisted for failing to meet minimum requirements.

The company has been cutting costs, including jobs, to offset slowing sales of its products during the recession. Xerium also is trying to revise terms its debt and could be forced to seek bankruptcy protection if it can't.

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