YOUNGSVILLE - Xerium Technologies, which has warned it may seek bankruptcy protection if it can't restructure its debt, reported a first-quarter loss of $4.7 million.

The Youngsville company, which makes equipment used in paper production, last year had first-quarter profit of $3 million.

Xerium also reported that quarterly sales rose 10.4 percent from the same period a year earlier to $159 million. Excluding benefits from currency exchange rates, sales rose 2.4 percent.

The company has said it received waivers from its lenders until May 31, giving it more time to improve its financial health or revise the terms of its nearly $700 million of debt.

The company is required to maintain certain ratios of debt to profit, which it is struggling to meet as sales slow in the United States and Europe.

"We remain in active discussions with our lending group to ... avoid default and allow Xerium greater financial and operating flexibility going forward," said Stephen Light, the company's CEO.

"In concert with these discussions, we are finalizing a revised, long-range business plan designed to increase cash generation over the next few years through improved operating efficiencies" and other steps, he added.

Xerium has 35 manufacturing facilities in 15 countries and 3,800 employees, including about 50 at its Youngsville headquarters in Franklin County, northeast of Raleigh.

Xerium released its latest financial results after the close of regular stock-market trading Wednesday. Its shares rose 12 cents to close at $2.43, but are down 73 percent in the past year.