Alliance One International, Inc. Tel: 919 379 4300
8001 Aerial Center Parkway Fax: 919 379 4346
Post Office Box 2009 www.aointl.com
Morrisville, NC 27560-2009
Contacts: Joel L. Thomas
Alliance One International Reports Fiscal Year 2013 Third Quarter Results
Morrisville, NC - June 17, 2013 - Alliance One International, Inc. (NYSE: AOI) today announced improved operating results for its fiscal year ended March 31, 2013 driven by revenue and operating income growth.
Fiscal Year Results
For the year ended March 31, 2013, the Company reported net income of $24.0 million, or $0.27 per basic share, compared to net income of $29.5 million, or $0.34 per basic share last year.
Sales and other operating revenues improved versus last year $93.0 million to $2,243.8 million consistent with the plan of leveraging the Company's lower cost position in the markets that it operates. This year cost of goods sold included $14.3 million of foreign exchange hedging expense primarily due to significant Brazilian Real depreciation versus the U.S. dollar during the first quarter, while last year we recognized $6.0 million of income. The $20.3 million cost increase versus last year directly impacted gross profit. Additionally, monitor expense remained similar to last year and should no longer impact results after the second quarter next fiscal year and is also not part of recurring core operating costs. A portion of cost and efficiency improvements are evident with an additional $1.8 million decrease in selling, general and administrative expense to $145.8 million, when compared to last fiscal year and reduced by $12.2 million since 2011, driven by head count reduction. Finally, operating income of $160.3 million this year, included $24.1 million pursuant to a Brazilian excise tax case ruling, compared to $13.7 million of gains last year, on a Brazilian real property exchange.
Mr. Pieter Sikkel, Chief Executive Officer and President said, “We are encouraged by our sales improvements this year, however there remain significant opportunities to improve our performance and we have further objectives to meet as part of reaching our goals. With South America returning to a more normal purchasing cycle and delayed shipments from some regions, inventory at year end was higher than anticipated, but well positioned. Our global team has pushed hard the last 28 months to deliver our restructuring plan laid out in December 2010. Our cost structure has improved substantially and has strengthened our market position, which is clear with sales that have improved from fiscal year 2011 by $149.7 million. We have evaluated our financial performance this year compared to last year, focusing on core operating results versus non-core expense and income. Understanding that we have now completed the second crop cycle since we began repositioning our business, we continue to progress in line with our internal plan and expect continued improvements as we move forward.
Mr. Sikkel concluded, “Strategic investment remains a primary focus and this year we deployed $39.9 million to further improve factory efficiencies and enhance our supply chain. Investment in farmer
The following information was filed by Alliance One International, Inc. (AOI) on Monday, June 17, 2013 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.
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Ticker: AOI CIK: 939930 Form Type:10-K Annual Report Accession Number: 0000939930-13-000034 Submitted to the SEC: Mon Jun 17 2013 5:04:24 PM EST Accepted by the SEC: Mon Jun 17 2013 Period: Sunday, March 31, 2013 Industry: Wholesale Farm Product Raw Materials