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Cambrex Reports Fourth Quarter and Full Year 2009 Results
Date:2/10/2010

n two large capital projects for which the majority of work has since been completed.  

Steven M. Klosk, President and Chief Executive Officer, said, "We are pleased to finish 2009 at the high end of our prior earnings guidance, with just over $47 million in EBITDA.  We successfully managed working capital and expense levels throughout the business and reduced net debt by nearly $23 million during the year.

"As we entered 2009 the macro-economy suggested a conservative approach that led us to focus on reducing costs and maximizing cash flow.  While the outlook for the economy appears to have stabilized as we start 2010, our smaller customers continue to face a difficult funding environment and pricing pressures continue to exist in most product categories.  The 2010 forecasts for certain of our larger products are lower than we expected, and in some cases lower than 2009, for a variety of reasons.  We renegotiated an extension of an important contract for certain drug delivery products during the fourth quarter, and made price and volume concessions in order to maintain the majority of the share of this business over the next three years.  These are key factors contributing to our guidance of flat to lower sales and profits for 2010.

"We have opportunities to grow revenues through the advancement of projects in our pipeline of late stage development products, within our controlled substances and drug delivery categories and through the launch of new generic APIs.  However, we are convinced that we need to invest more aggressively, both internally and externally, in niche markets, novel technologies, and new geographies that generate sustainable growth.  Of course, we will continue to identify ways to further reduce costs and increase cash flow as we focus on growing the business."

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