Dallas, Texas 06/29/2015 (Financialstrend) – John M. Hines is to stand down from Alliance One International, Inc. (NYSE:AOI) Board on August 13, 2015 when the company holds its Annual Shareholders meeting. Hines has been with the company for 23 years having served as the executive vice president from 1992 to 1996.
Alliance One International, Inc. (NYSE:AOI) CEO and President Pieter Sikkel said Hines experience has been of great help in shaping the company’s vision and strategy over the years. Hines was part of the management team that prepared the company in responding to the ever-changing economic and market conditions that continues to face the industry.
Hines is stepping down having seen the company post an impressive fourth quarter where net income came in at $3.8 million against a net loss posted for the same period last year. However, the company’s net sales declined by 12.3% following the deconsolidation of a Brazilian subsidiary. The company’s sales in the quarter faced challenges attributed to global oversupply as demand continued to fizzle.
Improving market Fundamentals
Alliance One International, Inc. (NYSE:AOI) remains bullish on global oversupply returning to equilibrium in the current quarter, which should result in improved sales sequentially. The company has also been utilizing its surplus cash to reduce its long-term debt having already canceled $15 million of 9.875% Senior Secured Second Lien Notes, purchased in the previous fiscal year.
The company’s liquidity position remains strong according to the CEO even as the company moves to erase a good chunk of the total debt by year end. Alliance One International, Inc. (NYSE:AOI) closed the 2015 fiscal year with $143.8 million in cash and $669.4 million in available credit as well as $10.9 million exclusively for letters of credit.
Alliance One International, Inc. (NYSE:AOI) is also pursuing a restructuring and efficiency improvement program that the CEO expects to generate between $30 and$35 million in recurring annualized savings. The company also plans to optimize its global footprint as part of the cost savings program.