01.01.03
Location: Manchester, CT
Sales: $90 million
Description: Key Personnel
Roger Widmann, chairman of the board; David Freeman, president and CEO; Christopher Skomorowski, executive vice president and COO; Thomas Smith, vice president, controller and interim CFO; Raymond Grupinski, group president; Kevin Lynch, group president; Bill Franks, president of Lydall Transport, Ltd.; Steven Thompson, vice president-investor relations and secretary; Mona Estey, vice president-human resources; Mary Tremblay, general counsel; Richard Kopp, chief information officer
ISO Status
Axohm ISO 9002 certified; Technical Papers ISO 9001 certified; Manning Green Island, ISO 9001 certified; Westex, Hamptonville, NC; Columbus, OH and St. Johnsbury, VT ISO 9001 and QS 9000, 3rd Edition certified; Charter Medical ISO 9001 certified, Lakewood, NJ FDA-registered manufacturer; Winston-Salem, NC FDA-registered distributor
Major Markets
Heat management solutions, air and liquid filtration, medical devices, flame barriers, electrical insulation
Plants
Rochester, NY; Saint Rivalain, France; Winston-Salem, NC; Hamptonville, NC; Columbus, OH; St. Johnsbury, VT; Green Island, NY; Ossipee, NH; Meinerzhagen, Germany
Brand Names
Lytherm, Manniglass, Manniweb, Affinity, Zero Clearance, dbLyte, Lypore, Lydair, Actipure, Technomat,
Increased focus on foreign markets, particularly in Europe and Asia, stepped up product development efforts and a look at spending practices are three of the core principles that should guide Lydall, Manchester, CT, toward future growth. The company has been able to significantly increase sales in its core segments during the past several years, despite economic difficulties, and sees no reason why this growth shouldn’t continue.
With a new CEO in place—David Freeman, a Lydall board member since 1998, who was named to the position in July 2003—Lydall has been focusing on streamlining its administrative costs to free up funds for its research and development and sales and marketing efforts. “Organic growth is a strong priority for us,” Mr. Freeman explained. “We are hoping to expand our efforts to bring new technologies into existing operations and markets.”
Former CEO, Christopher Skomorowski has been named chief operating officer. He and Mr. Freeman will work together to focus on growth opportunities for the company.
In recent years, acquisitions have proved profitable for Lydall as it has grown its business from two core markets—thermal and acoustical and filtration and separation. In 1998, when the company announced its intention to focus on these two areas, they together represented about 61% of sales. Today, the two comprise 89% of Lydall’s business, and company executives are still eyeing growth in these segments, which together achieve sales of about $224 million a year. Mr. Freeman said that an ideal acquisition that complements existing technology, in one of the two core areas, would be ideal for Lydall’s future. “Lydall has had some good acquisitions in the past,” he added. “This is a good way of growing and bringing new technology into existing operations and markets.
Currently, thermal/acoustical is the largest of the two segments, representing about 60% of overall sales. Of these, the bulk can be attributed to automotives where the company develops acoustical and insulation products. This segment has continued to perform well for Lydall both through increased marketshare and new applications in the segment. Smaller areas for the thermal and acoustical segment, such as duct liners in commercial buildings, have been negatively impacted by the soft global economy.
Lydall’s automotives business has been boosted by two major product introductions in recent years. Manufactured in Hamptonville, NC, ZeroClearance is a composite peel-and-stick product comprised of high performance aluminum sheeting in varying thicknesses, a mechanically needlepunched, pre-shrunk, polyester-based composite and a unique, high-temperature, pressure-sensitive adhesive on the back of the attachment. They can provide thermal protection independently or can act as a component of complete systems to enhance performance in certain trouble areas. By combining the thermal reflectance of an integrated thermal layer with the inherently low thermal conductivity of the core material, ZeroClearance acts as both a radiation and conduction barrier.
Additionally, dBCore is an acoustical nonwoven material that achieves superior sound abatement levels without noxious odors or environmental containment problems. This material is seeing a great deal of use as tunnel insulators for transmissions in trucks and sports utility vehicles. Lydall currently sells dbCore, which was launched last year, in the U.S., but plans are underway for a European rollout. If this roll out is as successful as expected, a European production line would likely follow ensue, according to Mr. Skomorowski. “We’ve been picking up share piece by piece in Europe, across all of our businesses,” he explained. “It’s becoming more and more important to us.”
Meanwhile, the company’s smaller segment, filtration, has been boosted by efforts into carbon wrap filters—for water filtration—and diesel filtration—for smaller particle size filtration. These new products are outpacing growth in Lydall’s more traditional product line, such as microglass filtration media, which is growing 4-5%annually . In the future, executives expect to see more growth come from the liquid side of the business.
The boost that new products have given Lydall is significant, accounting for 15% of total sales in 2002, and it is no wonder why Lydall executives are shifting more resources on new product development. Clearly, they are the means by which future growth will be achieved.
“We have really tried to be driven by the needs of the marketplace,” Mr. Freeman explained. “When you know where the market is going, it is easier to find growth opportunities.”
Currently about $90 million of the company’s total sales of $253 million are related to its nonwovens business. Of these sales, about one-third are conducted outside of the U.S., mainly in Europe and Asia.
As part of its effort to drive sales in Asia, Lydall has recently opened a business center in Taiwan, which will provide sales, marketing and technical support in the region. “This will provide us with a window into the Asian market and allow us to see the benefits and disadvantages of doing business in the region,” Mr. Freeman explained. “We consider it a prudent way of entering a market.”
Lydall’s previous efforts in Asia consisted of a sole sales office in Japan. Recent market shifts, however, have necessitated a presence on mainland China, where executives predict sales to double within the next several years. If the business center proves Asia is an important part of Lydall’s business, a manufacturing presence there could be next, according to executives.
In Europe, Lydall’s Saint-Rivalain, France site continues to be important, supplying goods globally. Thanks to the relocation of a meltblown line—formerly housed in Rochester, NH—in early 2002, France now holds the same capabilities as Lydall’s U.S. operation. The only difference in the U.S. lines is they can run faster, something that Lydall will change through capital improvements in upcoming years.
Looking ahead, streamlining administrative costs will be the first step in boosting Lydall’s profitability. The company has already finalized a plan to consolidate its Charter Medical business, a manufacturer of products designed to manage vital fluids in the blood and biopharmaceutical industries, and subsequently save costs. The company is now closing its Lakewood, NJ facility, an initiative announced in April. The operation will be consolided into Charter Medical’s Winston-Salem, NC site. Officials indicated that costs of $600,000 associated with the plant closing will be recouped in operating and administrative efficiencies within the first year of the consolidation.
“We are examining the expenses of our business and trying to streamline the administrative side,” Mr. Freeman said. “This will help us achieve our number one priority—organic growth—in the future.”
Sales: $90 million
Description: Key Personnel
Roger Widmann, chairman of the board; David Freeman, president and CEO; Christopher Skomorowski, executive vice president and COO; Thomas Smith, vice president, controller and interim CFO; Raymond Grupinski, group president; Kevin Lynch, group president; Bill Franks, president of Lydall Transport, Ltd.; Steven Thompson, vice president-investor relations and secretary; Mona Estey, vice president-human resources; Mary Tremblay, general counsel; Richard Kopp, chief information officer
ISO Status
Axohm ISO 9002 certified; Technical Papers ISO 9001 certified; Manning Green Island, ISO 9001 certified; Westex, Hamptonville, NC; Columbus, OH and St. Johnsbury, VT ISO 9001 and QS 9000, 3rd Edition certified; Charter Medical ISO 9001 certified, Lakewood, NJ FDA-registered manufacturer; Winston-Salem, NC FDA-registered distributor
Major Markets
Heat management solutions, air and liquid filtration, medical devices, flame barriers, electrical insulation
Plants
Rochester, NY; Saint Rivalain, France; Winston-Salem, NC; Hamptonville, NC; Columbus, OH; St. Johnsbury, VT; Green Island, NY; Ossipee, NH; Meinerzhagen, Germany
Brand Names
Lytherm, Manniglass, Manniweb, Affinity, Zero Clearance, dbLyte, Lypore, Lydair, Actipure, Technomat,
Increased focus on foreign markets, particularly in Europe and Asia, stepped up product development efforts and a look at spending practices are three of the core principles that should guide Lydall, Manchester, CT, toward future growth. The company has been able to significantly increase sales in its core segments during the past several years, despite economic difficulties, and sees no reason why this growth shouldn’t continue.
With a new CEO in place—David Freeman, a Lydall board member since 1998, who was named to the position in July 2003—Lydall has been focusing on streamlining its administrative costs to free up funds for its research and development and sales and marketing efforts. “Organic growth is a strong priority for us,” Mr. Freeman explained. “We are hoping to expand our efforts to bring new technologies into existing operations and markets.”
Former CEO, Christopher Skomorowski has been named chief operating officer. He and Mr. Freeman will work together to focus on growth opportunities for the company.
In recent years, acquisitions have proved profitable for Lydall as it has grown its business from two core markets—thermal and acoustical and filtration and separation. In 1998, when the company announced its intention to focus on these two areas, they together represented about 61% of sales. Today, the two comprise 89% of Lydall’s business, and company executives are still eyeing growth in these segments, which together achieve sales of about $224 million a year. Mr. Freeman said that an ideal acquisition that complements existing technology, in one of the two core areas, would be ideal for Lydall’s future. “Lydall has had some good acquisitions in the past,” he added. “This is a good way of growing and bringing new technology into existing operations and markets.
Currently, thermal/acoustical is the largest of the two segments, representing about 60% of overall sales. Of these, the bulk can be attributed to automotives where the company develops acoustical and insulation products. This segment has continued to perform well for Lydall both through increased marketshare and new applications in the segment. Smaller areas for the thermal and acoustical segment, such as duct liners in commercial buildings, have been negatively impacted by the soft global economy.
Lydall’s automotives business has been boosted by two major product introductions in recent years. Manufactured in Hamptonville, NC, ZeroClearance is a composite peel-and-stick product comprised of high performance aluminum sheeting in varying thicknesses, a mechanically needlepunched, pre-shrunk, polyester-based composite and a unique, high-temperature, pressure-sensitive adhesive on the back of the attachment. They can provide thermal protection independently or can act as a component of complete systems to enhance performance in certain trouble areas. By combining the thermal reflectance of an integrated thermal layer with the inherently low thermal conductivity of the core material, ZeroClearance acts as both a radiation and conduction barrier.
Additionally, dBCore is an acoustical nonwoven material that achieves superior sound abatement levels without noxious odors or environmental containment problems. This material is seeing a great deal of use as tunnel insulators for transmissions in trucks and sports utility vehicles. Lydall currently sells dbCore, which was launched last year, in the U.S., but plans are underway for a European rollout. If this roll out is as successful as expected, a European production line would likely follow ensue, according to Mr. Skomorowski. “We’ve been picking up share piece by piece in Europe, across all of our businesses,” he explained. “It’s becoming more and more important to us.”
Meanwhile, the company’s smaller segment, filtration, has been boosted by efforts into carbon wrap filters—for water filtration—and diesel filtration—for smaller particle size filtration. These new products are outpacing growth in Lydall’s more traditional product line, such as microglass filtration media, which is growing 4-5%annually . In the future, executives expect to see more growth come from the liquid side of the business.
The boost that new products have given Lydall is significant, accounting for 15% of total sales in 2002, and it is no wonder why Lydall executives are shifting more resources on new product development. Clearly, they are the means by which future growth will be achieved.
“We have really tried to be driven by the needs of the marketplace,” Mr. Freeman explained. “When you know where the market is going, it is easier to find growth opportunities.”
Currently about $90 million of the company’s total sales of $253 million are related to its nonwovens business. Of these sales, about one-third are conducted outside of the U.S., mainly in Europe and Asia.
As part of its effort to drive sales in Asia, Lydall has recently opened a business center in Taiwan, which will provide sales, marketing and technical support in the region. “This will provide us with a window into the Asian market and allow us to see the benefits and disadvantages of doing business in the region,” Mr. Freeman explained. “We consider it a prudent way of entering a market.”
Lydall’s previous efforts in Asia consisted of a sole sales office in Japan. Recent market shifts, however, have necessitated a presence on mainland China, where executives predict sales to double within the next several years. If the business center proves Asia is an important part of Lydall’s business, a manufacturing presence there could be next, according to executives.
In Europe, Lydall’s Saint-Rivalain, France site continues to be important, supplying goods globally. Thanks to the relocation of a meltblown line—formerly housed in Rochester, NH—in early 2002, France now holds the same capabilities as Lydall’s U.S. operation. The only difference in the U.S. lines is they can run faster, something that Lydall will change through capital improvements in upcoming years.
Looking ahead, streamlining administrative costs will be the first step in boosting Lydall’s profitability. The company has already finalized a plan to consolidate its Charter Medical business, a manufacturer of products designed to manage vital fluids in the blood and biopharmaceutical industries, and subsequently save costs. The company is now closing its Lakewood, NJ facility, an initiative announced in April. The operation will be consolided into Charter Medical’s Winston-Salem, NC site. Officials indicated that costs of $600,000 associated with the plant closing will be recouped in operating and administrative efficiencies within the first year of the consolidation.
“We are examining the expenses of our business and trying to streamline the administrative side,” Mr. Freeman said. “This will help us achieve our number one priority—organic growth—in the future.”