08.10.20
Neenah's consolidated net sales of $161.4 million in the second quarter of 2020 decreased 36% compared with $253.4 million in the second quarter of 2019. The decline in revenues resulted primarily from lower volumes caused by major adverse impacts of Covid-19. Net sales declined 28% in Technical Products and 48% in Fine Paper and Packaging, with a more pronounced decline in the Fine Paper and Packaging segment due to its shorter supply chain and reductions in end use demand for commercial print papers used primarily in advertising and marketing campaigns. Impacts from lower net selling prices and unfavorable currency translation effects were minimal in the quarter.
“I was pleased with the strong execution and aggressive cost reductions our teams delivered in response to the COVID-19 slowdown in our markets. Demand in each of our business segments sequentially improved throughout the quarter, and the actions we’ve taken will make us more efficient going forward. While these actions along with impacts on demand from the pandemic resulted in a large non-cash charge in the quarter, our financial position and liquidity remain sound, as evidenced by our strong cash flow and successful debt refinancing,” says Julie Schertell, chief executive officer. “This financial strength gives us flexibility to continue to execute our growth strategies, while maintaining a prudent balance sheet and providing returns to shareholders, including a meaningful dividend.”
“I was pleased with the strong execution and aggressive cost reductions our teams delivered in response to the COVID-19 slowdown in our markets. Demand in each of our business segments sequentially improved throughout the quarter, and the actions we’ve taken will make us more efficient going forward. While these actions along with impacts on demand from the pandemic resulted in a large non-cash charge in the quarter, our financial position and liquidity remain sound, as evidenced by our strong cash flow and successful debt refinancing,” says Julie Schertell, chief executive officer. “This financial strength gives us flexibility to continue to execute our growth strategies, while maintaining a prudent balance sheet and providing returns to shareholders, including a meaningful dividend.”