05.11.15
Lydall’s net sales were $127.3 million in the first quarter of 2015 compared to $125.2 million in the first quarter of 2014. Operating income was $10.1 million, or 7.9% of net sales, compared to $7.6 million, or 6.1% of net sales, in the first quarter of 2014. Net income was $18.9 million in the first quarter of 2015 compared to $3.7 million in the first quarter of 2014.
“Our first quarter results experienced pressure from unfavorable foreign currency translation and lower tooling sales, as well as a reduction in net sales and operating margin in our Performance Materials segment,” says Dale Barnhart, president and CEO. “This was primarily a result of weakness in demand for cryogenic insulation products serving the liquid natural gas market given the sharp decline in the price of oil. Stable demand for automotive parts in our Thermal/Acoustical Metals and Thermal/Acoustical Fibers segments helped to offset these items, and progress was made in increasing the operating margin performance of our automotive businesses. Additionally, operating margin of over 9% was achieved in our Industrial Filtration segment.
“Looking forward to the balance of the year, the company expects global demand from our automotive customers to continue to be healthy and the Thermal/Acoustical Fibers segment to benefit from increased demand from a key customer that is in the process of bringing a plant back to full rate production following a planned shutdown. In our Industrial Filtration segment, we are seeing signs of continued strength in orders and backlog as the first half of the year is typically stronger than the second half due to normal seasonality. In the Performance Materials segment, we expect some headwinds in the North American filtration market and weakness in the global liquid natural gas markets to persist.”
“Our first quarter results experienced pressure from unfavorable foreign currency translation and lower tooling sales, as well as a reduction in net sales and operating margin in our Performance Materials segment,” says Dale Barnhart, president and CEO. “This was primarily a result of weakness in demand for cryogenic insulation products serving the liquid natural gas market given the sharp decline in the price of oil. Stable demand for automotive parts in our Thermal/Acoustical Metals and Thermal/Acoustical Fibers segments helped to offset these items, and progress was made in increasing the operating margin performance of our automotive businesses. Additionally, operating margin of over 9% was achieved in our Industrial Filtration segment.
“Looking forward to the balance of the year, the company expects global demand from our automotive customers to continue to be healthy and the Thermal/Acoustical Fibers segment to benefit from increased demand from a key customer that is in the process of bringing a plant back to full rate production following a planned shutdown. In our Industrial Filtration segment, we are seeing signs of continued strength in orders and backlog as the first half of the year is typically stronger than the second half due to normal seasonality. In the Performance Materials segment, we expect some headwinds in the North American filtration market and weakness in the global liquid natural gas markets to persist.”