Press Release Details

Third-quarter Financial Highlights

• Net sales from continuing operations were $194.6 million, a decrease of 2.8 percent compared to Q3 2011.
• Adjusted EBITDA from continuing operations for Q3 2012 was $41.9 million compared to $38.8 million in Q3 2011 (see Tables 4 and 5).
• Q3 2012 income from continuing operations was $0.29 per share. These results include restructuring charges of $0.06, foreign currency revaluation losses of $0.07 and net unfavorable income tax adjustments of $0.04 (see Table 6).
• Q3 2011 income from continuing operations was $0.46 per share. These results include restructuring charges of $0.06 and foreign currency revaluation gains of $0.14 (see Table 7).
• Net debt declined $31.2 million during the quarter (see Table 8).

ROCHESTER, N.H.--(BUSINESS WIRE)--Oct. 31, 2012-- Albany International Corp. (NYSE:AIN), a global advanced textiles and materials processing company with core businesses in machine clothing and engineered composites, reported Q3 2012 income from continuing operations of $9.1 million ($0.29 per share). These results include restructuring charges of $2.7 million ($0.06 per share), foreign currency revaluation losses of $3.6 million ($0.07 per share), and net unfavorable income tax adjustments of $1.3 million ($0.04 per share) (see Table 6).

Q3 2011 income from continuing operations was $14.5 million ($0.46 per share). These results included restructuring charges of $2.7 million ($0.06 per share) and foreign currency revaluation gains of $6.6 million ($0.14 per share) (see Table 7).

Net sales from continuing operations were $194.6 million, a decrease of 2.8 percent compared to Q3 2011. The following table summarizes net sales by segment and the effect of changes in currency translation rates:

Table 1
															Impact of				Percent
			Net Sales												Changes				Change
			Three Months ended												in Currency				excluding
			September 30,								Percent				Translation				Currency
(in thousands)			2012				2011				Change				Rates				Rate Effect
Machine Clothing (MC)			$	177,471			$	188,334			-5.8	%			($5,449	)			-2.9	%
Engineered Composites (AEC)				17,118				11,918			43.6				-				43.6
Total			$	194,589			$	200,252			-2.8	%			($5,449	)			-0.1	%

A transition to new contract terms with a major customer in North America, accelerating the transfer of inventory ownership to that customer, increased Q3 net sales by $8 million, and will have a smaller positive residual impact on sales over the next two quarters.

Gross profit was $79.7 million (40.9 percent of net sales) in the third quarter of 2012, compared to $78.1 million (39.0 percent of net sales) in the same period of 2011. The increase in gross profit percentage was primarily due to Machine Clothing, where gross profit margins increased from 42.1 percent in 2011 to 44.6 percent in 2012 as a result of high plant utilization in the Americas and favorable geographic sales mix.

Selling, technical, general, and research (STG&R) expenses were $53.8 million, or 27.6 percent of net sales, in the third quarter of 2012. STG&R expenses included losses of $1.4 million related to the revaluation of non-functional-currency assets and liabilities. In the third quarter of 2011, STG&R expenses were $48.6 million, or 24.3 percent of net sales, including gains of $5.8 million related to the revaluation of non-functional-currency assets and liabilities.

The following table summarizes third-quarter operating income by segment.

Table 2
			Operating Income/(loss)
			Three Months ended
			September 30,
(in thousands)			2012					2011
Machine Clothing			$	44,918				$	48,867
Engineered Composites				(312	)				(1,434	)
Research expenses				(6,734	)				(6,400	)
Unallocated expenses				(14,760	)				(14,275	)
Total			$	23,112				$	26,758

Q3 2012 Machine Clothing operating income included restructuring charges of $2.7 million and foreign currency revaluation losses of $1.4 million. Q3 2011 Machine Clothing operating income included restructuring charges of $2.6 million and foreign currency revaluation gains of $5.8 million.

Q3 2012 Other income/expense, net, was expense of $3.1 million, including losses of $2.2 million related to the revaluation of non-functional-currency intercompany balances. Other income/expense, net, in Q3 2011 was nil, including income of $0.8 million related to the revaluation of non-functional-currency intercompany balances.

The following table summarizes currency revaluation effects on certain financial metrics:

Table 3
			Income/(loss) attributable
			to currency revaluation
			Three Months ended
			September 30,
(in thousands)			2012				2011
Operating income			($1,406	)			$	5,774
Other income/(expense), net			( 2,174	)				815
Total			($3,580	)			$	6,589

The Company’s effective income tax rate, exclusive of discrete tax items, was 35.4 percent for the third quarter of 2012, and 34.6 percent for the third quarter of 2011. The Company recorded favorable discrete income tax adjustments of $0.7 million in 2012 and $0.1 million in 2011. A change in the estimated income tax rate increased income tax expense by $2.0 million in 2012 and $0.2 million in 2011.

The following tables summarize Adjusted EBITDA from continuing operations:

Table 4
Three Months ended September 30, 2012												Research
			Machine				Engineered					and				Total
(in thousands)			Clothing				Composites					Unallocated				Company
Income from continuing operations			$	44,918				($312	)			($35,525	)			$	9,081
Interest expense, net				-				-				3,997					3,997
Income tax expense				-				-				6,965					6,965
Depreciation and amortization				11,469				1,471				2,606					15,546
EBITDA from continuing operations				56,387				1,159				(21,957	)				35,589
Restructuring and other, net				2,739				-				-					2,739
Foreign currency revaluation losses				1,401				3				2,176					3,580
Adjusted EBITDA from continuing operations			$	60,527			$	1,162				($19,781	)			$	41,908

Table 5
Three Months ended September 30, 2011									Research
			Machine			Engineered			and			Total
(in thousands)			Clothing			Composites			Unallocated			Company
Income from continuing operations			$48,867			($1,434)			($32,940)			$14,493
Interest expense, net			-			-			4,377			4,377
Income tax expense			-			-			7,897			7,897
Depreciation and amortization			12,049			1,241			2,642			15,932
EBITDA from continuing operations			60,916			(193)			(18,024)			42,699
Restructuring and other, net			2,610			-			81			2,691
Foreign currency revaluation gains			(5,775)			-			(814)			(6,589)
Adjusted EBITDA from continuing operations			$57,751			($193)			($18,757)			$38,801

Capital spending for equipment and software was $11.2 million for the third quarter of 2012, bringing the year-to-date total to $25.4 million. Depreciation and amortization related to continuing operations was $15.5 million. For 2012, we continue to expect approximately $35-$40 million of capital spending and $63 million of depreciation and amortization.

CEO Comments

President and CEO Joseph Morone said, “Despite the continuing deterioration in Europe, Q3 2012 was another good quarter for Albany International. Excluding revaluation effects and restructuring, EBITDA was $42 million, compared to $39 million a year ago. Net debt declined by another $31 million.

"A transition to new contract terms with a major MC customer in North America boosted Q3 sales by roughly $8 million, and EBITDA by roughly $3.5 million. Excluding the effect of this change, total Company sales for Q3 2012 were 7 percent lower than Q3 2011, and Adjusted EBITDA was comparable.

“In MC, apart from that change in contract terms, sales in the Americas and Asia held firm, while as expected, sales in Europe continued to deteriorate. Compared to Q3 2011, sales in Europe were down 18 percent, which is consistent with the overall European PMC industry. Globally, gross margins held at Q2 levels and our competitive performance was once again very strong, particularly in the Americas.

“Turning to our outlook for MC, we continue to expect comparable year-over-year Adjusted EBITDA. For the immediate future, we expect the quarterly volatility that we have experienced since the 2009 recession to continue. We anticipate a sharp slowdown at the end of this year across all of our markets, followed by a very slow start to next year, just as we experienced in Q4 2011 and Q1 2012. If anything, given the greater economic uncertainty, the slowdown at the end of this year has the potential to be more severe than last year. For 2013, we expect continued weakness in demand in Europe and given the structural conditions there, a near certainty of price deterioration. Nonetheless, as long as we continue to take the actions necessary to match capacity with underlying market conditions, and the economies in North America and Asia hold firm in the first half of 2013 and strengthen in the second half, we expect full-year 2013 Adjusted EBITDA to be comparable to full-year 2012.

“For the longer term, given our competitive strength around the world, our cost position and technology portfolio, the growth potential in Asia and South America, and the economic health of our most important customers in North America, we remain confident that under normal economic conditions and as long as we continue to offset inflation, this business should generate steady EBITDA and cash flow.

“AEC continued its string of strong quarters. Sales hit $17 million for the quarter, an increase of 44 percent over the comparable period last year, and EBITDA was once again in line with our expectation of a $5 million annualized run-rate. The development program for the fan module of the LEAP engine remains on schedule; the most important near-term milestones are production of parts for CFM’s first LEAP engine test (currently scheduled for Q3 2013) and construction of Plant 1 (scheduled for completion mid-2013). Our longer term R&D activities continue to expand, including a growing array of joint R&D activities with Safran directed at both low- and high-temperature applications; activities aimed at airframe applications; and an exploration of applications in the automotive industry. Construction of AEC’s new 45,000-square-foot advanced composites R&D Center will be completed in Q4 of this year. Boeing’s ground test of the ceramic composite engine nozzle, delayed by availability of the test engine, is also scheduled for late in Q4.

“In sum, Q3 2012 was a strong quarter, with both businesses performing well, meeting our short-term expectations, and reinforcing our confidence in their long-term potential. Our outlook remains unchanged. For Q4 and 2013, we continue to expect stable year-over-year Adjusted EBITDA despite continuing deterioration in European Machine Clothing.”

CFO Comments

CFO and Treasurer John Cozzolino commented, “Net debt declined approximately $31 million as compared to Q2 (see Table 8), due to strong operating results and cash flow from reductions in working capital. Total debt declined about $22 million, compared to Q2, as cash received at the end of Q2 related to the PrimaLoft^® sale was utilized to pay down debt. Our leverage ratio, as defined in our primary debt agreements, was 1.06 at the end of Q3, while $256 million was available on our $390 million credit facility. Cash balances, mostly held outside of the U.S., increased to about $174 million at the end of Q3.

“Positive cash flow during Q3 from reductions in working capital, as shown in the Consolidated Statements of Cash Flows, was mostly due to improvements in accounts receivable and inventory. While Days Sales Outstanding remained flat at 63 days, compared to Q2, reductions in accounts receivable generated approximately $4 million of cash during the quarter. Inventory as a percent of net sales improved from 16.1 percent at the end of Q2 to 15.2 percent at the end of Q3, and reductions in inventory generated approximately $9 million of cash during the quarter.

“Our income tax rate in Q3, exclusive of discrete tax adjustments, was about 35 percent, and is expected to be in the mid-30 percent range for the full-year 2012. The increase in the tax rate forecast, compared to the expectation discussed in Q2, is mostly due to a change in the expected full-year geographic distribution of pre-tax income and the impact of potential future repatriations of non-U.S. cash. Including the utilization of net operating loss carry-forwards and other deferred tax assets, cash paid for income taxes through Q3 2012 was $13.7 million, and is expected to total $15 million in 2012.”

The Company plans a webcast to discuss third-quarter 2012 financial results on Thursday, November 1, 2012, at 9:00 a.m. Eastern Time. For access, go to www.albint.com.

About Albany International Corp.

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 4,300 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 www.albint.com.

This release contains certain items, such as earnings before interest, taxes, depreciation and amortization (EBITDA), EBITDA from continuing operations, Adjusted EBITDA, sales excluding currency effects, effective income tax rate exclusive of income tax adjustments, net debt, and certain income and expense items on a per share basis, that could be considered non-GAAP financial measures. Such items are provided because management believes that, when presented together with the GAAP items to which they relate, they provide additional useful information to investors regarding the Company’s operational performance. Presenting increases or decreases in sales, after currency effects are excluded, can give management and investors insight into underlying sales trends. An understanding of the impact in a particular quarter of specific restructuring costs, or other gains and losses, on operating income or EBITDA can give management and investors additional insight into quarterly performance, especially when compared to quarters in which such items had a greater or lesser effect, or no effect.

The effect of changes in currency translation rates is calculated by converting amounts reported in local currencies into U.S. dollars at the exchange rate of a prior period. That amount is then compared to the U.S. dollar amount reported in the current period. The Company calculates Income tax adjustments by adding discrete tax items to the effect of a change in tax rate for the reporting period. The Company calculates its effective Income tax rate, exclusive of Income tax adjustments, by removing Income tax adjustments from total Income tax expense, then dividing that result by Income before tax. The Company calculates EBITDA by adding Interest expense net, Income taxes, and Depreciation and Amortization to Net income. Adjusted EBITDA is calculated by adding to EBITDA, costs associated with restructuring and pension settlement charges, and then adding or subtracting revaluation losses or gains and subtracting building share gains. The Company believes that EBITDA and Adjusted EBITDA provide useful information to investors because they provide an indication of the strength and performance of the Company's ongoing business operations, including its ability to fund discretionary spending such as capital expenditures and strategic investments, as well as its ability to incur and service debt. While depreciation and amortization are operating costs under GAAP, they are non-cash expenses equal to current period allocation of costs associated with capital and other long-lived investments made in prior periods. While restructuring expenses, foreign currency revaluation losses or gains, pension settlement charges, and building sale gains have an impact on the Company's net income, removing them from EBITDA can provide, in the opinion of the Company, a better measure of operating performance. EBITDA is also a calculation commonly used by investors and analysts to evaluate and compare the periodic and future operating performance and value of companies. EBITDA, as defined by the Company, may not be similar to EBITDA measures of other companies. Such EBITDA measures may not be considered measurements under GAAP, and should be considered in addition to, but not as substitutes for, the information contained in the Company’s statements of income.

The Company discloses certain income and expense items on a per share basis. The Company believes that such disclosures provide important insight into underlying quarterly earnings and are financial performance metrics commonly used by investors. The Company calculates the per share amount for items included in continuing operations by using the effective tax rate utilized during the applicable reporting period and the weighted average number of shares outstanding for the period.

Table 6
Quarter ended September 30, 2012
			Pre-tax				Tax				After-tax				Shares			Per Share
(in thousands, except per share amounts)			amounts				Effect				Effect				Outstanding			Effect
Restructuring and other, net from continuing operations			$	2,739			$	970			$	1,769			31,363			$	0.06
Foreign currency revaluation losses from continuing operations				3,580				1,267				2,313			31,363				0.07
Negative effect of change in tax rate			-					1,968				1,968			31,363				0.06
Discrete income tax benefit from continuing operations				-				684				684			31,363				0.02

Table 7
Quarter ended September 30, 2011
			Pre-tax				Tax				After-tax				Shares			Per Share
(in thousands, except per share amounts)			amounts				Effect				Effect				Outstanding			Effect
Restructuring and other, net from continuing operations			$	2,691			$	931			$	1,760			31,278			$	0.06
Foreign currency revaluation gains from continuing operations				6,589				2,280				4,309			31,278				0.14
Negative effect of change in tax rate			-					241				241			31,278				0.01
Discrete income tax benefit from continuing operations				-				97				97			31,278				0.00

The Company defines net debt as total debt minus cash. Management views net debt, a non-GAAP financial measure, as a measure of the Company's ability to reduce debt, add to cash balances, pay dividends, repurchase stock, and fund investing and financing activities. A reconciliation of total debt to net debt as of September 30, 2012, June 30, 2012, and December 31, 2011, is shown below:

The following table contains the calculation of net debt:

Table 8
(in thousands)			September 30, 2012				June 30, 2012				December 31, 2011
Notes and loans payable			$	276			$	357			$	424
Current maturities of long-term debt				33,066				30,355				1,263
Long-term debt				289,129				313,632				373,125
Total debt				322,471				344,344				374,812
Cash				173,939				164,592				118,909
Net debt			$	148,532			$	179,752			$	255,903

This press 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,” “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 or in the webcast include, without limitation, statements about future economic and paper industry conditions; sales, EBITDA, Adjusted EBITDA and operating income expectations in future periods in each of the Company’s businesses and for the Company as a whole, the timing and impact of certain production and development programs in the Company’s AEC business segment; the amount and timing of capital expenditures, future tax rates and cash paid for taxes, depreciation and amortization, future debt levels and debt covenant ratios, future revaluation gains and losses, and the Company’s ability to reduce costs. Furthermore, a change in any one or more of the foregoing factors could have a material effect on the Company’s financial results in any period. Such statements are based on current expectations, and the Company undertakes no obligation to publicly update or revise any forward-looking statements.

Statements expressing management’s assessments of the growth potential of its businesses, or referring to earlier assessments of such potential, are not intended as forecasts of actual future growth, and should not be relied on as such. While management believes such assessments to have a reasonable basis, such assessments are, by their nature, inherently uncertain. This release and earlier releases set forth a number of assumptions regarding these assessments, including historical results, independent forecasts regarding the markets in which these businesses operate, and the timing and magnitude of orders for our customers’ products. Historical growth rates are no guarantee of future growth, and such independent forecasts and assumptions could prove materially incorrect, in some cases.

ALBANY INTERNATIONAL CORP.
CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except per share data)
(unaudited)
Three Months Ended										Nine Months Ended
September 30,										September 30,
2012				2011						2012				2011
$	194,589			$	200,252			Net sales		$	566,606			$	589,887
	114,938				122,190			Cost of goods sold			340,169				352,697
	79,651				78,062			Gross profit			226,437				237,190
	41,166				35,947			Selling, general, and administrative expenses			125,335				127,317
	12,634				12,666			Technical, product engineering, and research expenses			39,019				41,105
	2,739				2,691			Restructuring and other, net			6,149				4,456
	-				-			Pension settlement expense			119,735				-
	23,112				26,758			Operating income/(loss)			(63,801	)			64,312
	3,997				4,377			Interest expense, net			12,610				13,939
	3,069				(9	)		Other expense/(income), net			5,062				4,811
	16,046				22,390			Income/(loss) before income taxes			(81,473	)			45,562
	6,965				7,897			Income tax expense/(benefit)			(32,650	)			14,303
	9,081				14,493			Income/(loss) from continuing operations			(48,823	)			31,259
	-				3,316			Income from operations of discontinued business			4,776				16,307
	(301	)			-			(Loss)/gain on sale of discontinued business			92,376				-
	(683	)			1,135			Income tax (benefit)/expense on discontinued operations			25,570				5,397
	382				2,181			Income from discontinued operations			71,582				10,910
$	9,463			$	16,674			Net income		$	22,759			$	42,169
								Earnings per share - Basic
$	0.29			$	0.46			Income/(loss) from continuing operations			($1.56	)		$	1.00
	0.01				0.07			Discontinued operations			2.29				0.35
$	0.30			$	0.53			Net income		$	0.73			$	1.35
								Earnings per share - Diluted
$	0.29			$	0.46			Income/(loss) from continuing operations			($1.55	)		$	0.99
	0.01				0.07			Discontinued operations			2.27				0.35
$	0.30			$	0.53			Net income		$	0.72			$	1.34
								Shares used in computing earnings per share:
	31,363				31,278			Basic			31,340				31,255
	31,550				31,462			Diluted			31,550				31,476
$	0.14			$	0.13			Dividends per share		$	0.41			$	0.38

ALBANY INTERNATIONAL CORP.
CONSOLIDATED BALANCE SHEETS
(in thousands, except share data)
(unaudited)
		September 30,				December 31,
		2012				2011
ASSETS
Cash and cash equivalents		$	173,939			$	118,909
Accounts receivable, net			170,825				147,511
Inventories			121,696				129,803
Income taxes receivable and deferred			19,918				30,010
Prepaid expenses and other current assets			9,583				13,349
Current assets of discontinued operations			-				67,351
Total current assets			495,961				506,933
Property, plant and equipment, net			422,356				438,953
Intangibles			904				1,079
Goodwill			75,066				75,469
Deferred taxes			110,777				134,644
Other assets			25,633				23,383
Noncurrent assets of discontinued operations			-				50,467
Total assets		$	1,130,697			$	1,230,928
LIABILITIES AND SHAREHOLDERS' EQUITY
Notes and loans payable		$	276			$	424
Accounts payable			27,232				32,708
Accrued liabilities			114,426				105,104
Current maturities of long-term debt			33,066				1,263
Income taxes payable and deferred			3,973				8,766
Current liabilities of discontinued operations			-				22,446
Total current liabilities			178,973				170,711
Long-term debt			289,129				373,125
Other noncurrent liabilities			110,360				185,596
Deferred taxes and other credits			56,060				71,529
Noncurrent liabilities of discontinued operations			-				14,117
Total liabilities			634,522				815,078
SHAREHOLDERS' EQUITY
Preferred stock, par value $5.00 per share; authorized 2,000,000 shares; none issued			-				-
Class A Common Stock, par value $.001 per share; authorized 100,000,000 shares; issued 36,629,604 in 2012 and 36,540,842 in 2011			37				37
Class B Common Stock, par value $.001 per share; authorized 25,000,000 shares; issued and outstanding 3,236,098 in 2012 and 2011			3				3
Additional paid in capital			393,801				391,495
Retained earnings			431,954				422,044
Accumulated items of other comprehensive income:
Translation adjustments			(16,944	)			(19,111	)
Pension and postretirement liability adjustments			(51,871	)			(118,104	)
Derivative valuation adjustment			(3,141	)			(2,594	)
Treasury stock (Class A), at cost 8,467,873 shares in 2012, and 8,479,487 shares in 2011			(257,664	)			(257,920	)
Total shareholders' equity			496,175				415,850
Total liabilities and shareholders' equity		$	1,130,697			$	1,230,928

ALBANY INTERNATIONAL CORP.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)
Three Months Ended										Nine Months Ended
September 30,										September 30,
2012				2011						2012				2011
								OPERATING ACTIVITIES
$	9,463			$	16,674			Net income		$	22,759			$	42,169
								Adjustments to reconcile net income to net cash provided by operating activities:
	13,953				14,407			Depreciation			42,638				42,933
	1,593				2,261			Amortization			4,862				6,750
	210				188			Noncash interest expense			824				565
	1,478				(11,021	)		Change in long-term liabilities, deferred taxes and other credits			(116,374	)			(11,045	)
	-				40			Provision for write-off of property, plant and equipment			200				104
	-				-			Write-off of pension liability adjustment due to settlement			118,350				-
	301				-			(Gain) on disposition of assets			(92,376	)			(1,022	)
	(26	)			(18	)		Excess tax benefit of options exercised			(37	)			(53	)
	392				679			Compensation and benefits paid or payable in Class A Common Stock			1,795				1,969
								Changes in operating assets and liabilities, net of business acquisitions and divestitures:
	3,655				(17,091	)		Accounts receivable			(6,870	)			(10,186	)
	8,505				4,062			Inventories			8,376				(13,250	)
	746				281			Prepaid expenses and other current assets			(251	)			(2,192	)
	(4,216	)			(2,897	)		Accounts payable			(4,241	)			1,005
	5,707				9,226			Accrued liabilities			13,071				5,136
	1,768				5,738			Income taxes payable			(762	)			10,597
	(359	)			(25	)		Other, net			(2,242	)			822
	43,170				22,504			Net cash provided by/(used in) operating activities			(10,278	)			74,302
								INVESTING ACTIVITIES
	(11,047	)			(4,261	)		Purchases of property, plant and equipment			(25,237	)			(18,155	)
	(146	)			(346	)		Purchased software			(154	)			(2,098	)
	-				-			Proceeds from sale of assets			-				2,860
	-				-			Proceeds from sale of discontinued operations			150,654				-
	(11,193	)			(4,607	)		Net cash (used in)/provided by investing activities			125,263				(17,393	)
								FINANCING ACTIVITIES
	7,000				741			Proceeds from borrowings			45,164				1,385
	(29,131	)			(29,090	)		Principal payments on debt			(98,354	)			(37,087	)
	811				114			Proceeds from options exercised			1,079				415
	26				18			Excess tax benefit of options exercised			37				53
	(4,390	)			(4,066	)		Dividends paid			(12,528	)			(11,560	)
	(25,684	)			(32,283	)		Net cash (used in) financing activities			(64,602	)			(46,794	)
	3,054				(12,892	)		Effect of exchange rate changes on cash and cash equivalents			4,647				(2,648	)
	9,347				(27,278	)		Increase/(decrease) in cash and cash equivalents			55,030				7,467
	-				(306	)		Change in cash balances of discontinued operations			-				(1,282	)
	164,592				151,694			Cash and cash equivalents at beginning of period			118,909				117,925
$	173,939			$	124,110			Cash and cash equivalents at end of period		$	173,939			$	124,110

Source: Albany International Corp.

Investors:
Albany International Corp.
John Cozzolino, 518-445-2281
john.cozzolino@albint.com
or
Media:
Albany International Corp.
Susan Siegel, 603-330-5866
susan.siegel@albint.com
or
Kekst and Company for Albany International
Michael Herley, 212-521-4897
michael-herley@kekst.com