Net revenue for this year’s first quarter was $351.8 million, up 5.6% versus the first quarter of 2006. The impact of acquisitions and divestitures, as well as foreign currency translation, favorably contributed 9.4 and 2.4 percentage points, respectively, to net revenue growth. Average selling prices contributed 4.1 percentage points and volume declines reduced growth by 10.3 percentage points year-over-year. Volume was adversely impacted by weakness in the automotive, new housing and durable goods end markets in North America.
First quarter net income increased 44% from $14.5 million in last year’s first quarter to $20.8 million. Profitable pricing processes, mix management and comprehensive cost controls were the primary factors leading to the increased earnings.
“We are pleased with our first quarter results and remain optimistic in our outlook in spite of accelerated weakness in some of our markets in North America,” said Michele Volpi, president and CEO. “The strong capabilities we have created as an organization are enabling us to succeed in the current environment. Based upon the strong performance in the first quarter and the confidence we have in our strategy, processes, and ability to execute, we are raising our expectations for the year.”