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    Breaking News

    Lydall’s Sales Increase Nearly 10%

    Interface acquisition helped grow sales in the third quarter

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    11.06.18
    Lydall’s net sales in the third quarter of 2018 increased by $17.8 million, or 9.9%, to $197.9 million, compared to $180 million in the third quarter of 2017. Acquisitions in the third quarter of 2018 increased Performance Materials ("PM") segment net sales by $13.4 million, which was partially offset by a decline in organic sales of 3.8% primarily due to lower sales in the legacy product insulation and cryogenic markets. The Thermal Acoustical Solutions segment ("TAS") reported organic sales growth of 3.3% from increased global parts sales, while the Technical Nonwovens ("TNW") segment realized 1.6% organic sales growth led by improved demand for industrial filtration products primarily in the European market.

    Dale G. Barnhart, president and chief executive officer, states, “Sales increased nearly 10% from third quarter 2017, led by September sales from our acquisition of Interface Performance Materials, and healthy organic growth. While we anticipated improved consolidated margins sequentially from second quarter 2018, unfavorable product mix and volume shortfalls, including tariff related reductions in China, impacted margins in the Performance Materials segment. The expected volume recovery from a supplier fire in the second quarter was lower than expected, resulting in lower sales and margins in our Thermal Acoustical Solutions segment. Also, increased raw material costs contributed to lower than expected margins in the third quarter of 2018.

    "The Interface acquisition, which closed on August 31, 2018, contributed $11.8 million to the top line during the quarter, which was in line with expectations. The transaction further advances Lydall’s engineered materials offering in new markets using manufacturing technologies that are core to our business. While early on, we are very pleased with the progress being made on the integration."
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