UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 OR 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) April 30, 2008
ALBANY INTERNATIONAL CORP.
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(Exact name of registrant as specified in its charter)
Delaware 0-16214 14-0462060
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(State or other jurisdiction (Commission (I.R.S. Employer
of incorporation) File Number) Identification No.)
1373 Broadway, Albany, New York 12204
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (518) 445-2200
None
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(Former name or former address, if changed since last report.)
Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of the
following provisions:
|_| Written communications pursuant to Rule 425 under the Securities Act (17
CFR 230.425)
|_| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
|_| Pre-commencement communications pursuant to Rule 14d-2(b) under the
Exchange Act (17 CFR 240.14d-2(b))
|_| Pre-commencement communications pursuant to Rule 13e-4(c) under the
Exchange Act (17 CFR 240.13a-4(c))
Item 2.05. Costs Associated with Exit or Disposal Activities.
Albany International Corp. (the "Company") issued a news release on January 7,
2008 announcing plans to further reduce manufacturing capacity in North America.
As announced, the Company intends to discontinue operations at its forming
fabric manufacturing facility in Montgomery, Alabama. The plans are in response
to the continuing consolidation within the paper industry in the U.S. and Canada
and the need to balance the Company's PMC manufacturing capacity in North
America with anticipated paper mill demand. Discussions with labor
representatives at the affected operations began shortly after that
announcement. Given that requirement, the Company was at that time unable to
determine the amount of the expense to be incurred for severance and termination
payments, and therefore was unable to determine total costs expected to be
incurred.
Type of restructuring expenses:
The Company has now determined that it expects to incur net restructuring
charges of $1.3 million related to these actions. The restructuring charges
include approximately $2.8 million of cash charges for severance and other
termination benefits and $0.3 million of other cash expenses. These charges will
be partially offset by a $1.8 million gain resulting from the curtailment effect
of these actions on the Company's United States pension and postretirement
benefit programs.
Timing of restructuring expense recognition:
Related to those actions, the Company expects to report 2008 net restructuring
charges of $2.8 million in the first quarter, and gains of $1.1 million and $0.4
million in the second and third quarters, respectively.
Other related costs:
In addition to costs that will be reported as restructuring expenses, the
Company estimates that it will incur the following:
-Idle capacity 2008 costs in these plants of approximately $0.4 million in the
first quarter, $0.6 million in the second quarter, $0.4 million in the third
quarter, and $0.2 million in the fourth quarter.
-Asset transfer 2008 expenses of approximately $1.2 million in the second
quarter, $1.2 million in the third quarter, and $0.6 million in the fourth
quarter. The remaining expenses of approximately $0.3 million will be recognized
in the first quarter of 2009.
-Other miscellaneous costs of $2.2 million that will be incurred throughout
2008.
Signature
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
ALBANY INTERNATIONAL CORP.
By: /s/ Michael C. Nahl
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Name: Michael C. Nahl
Title: Executive Vice President and
Chief Financial Officer
Date: April 30, 2008