11.04.20
Neenah’s consolidated net sales of $190.7 million in the third quarter of 2020 decreased 18% compared with $231.8 million in the third quarter of 2019. The decline in revenues resulted primarily from lower volumes caused by continued adverse impacts of Covid-19. Net sales declined 6% in Technical Products and 33% in Fine Paper and Packaging from the prior year period, with a more pronounced decline in the Fine Paper and Packaging segment due to reductions in end-use demand for commercial print papers used primarily in advertising and marketing campaigns. Impacts from lower net selling prices were partially offset by favorable currency effects. While down versus prior year, third quarter consolidated net sales increased 18% from the second quarter 2020.
Technical Products quarterly net sales of $123.5 million in 2020 decreased 6% from $131.7 million in the prior year. The revenue decline was primarily due to lower sales in the performance materials business due to Covid-19 that was only partly offset by increased filtration sales, including media for face masks in Europe introduced earlier this year. Modestly lower net selling prices in 2020 were partly offset by favorable currency effects from a stronger euro.
“I was pleased with third quarter results, as we significantly increased revenues from the second quarter and both segments returned to double-digit EBIT margins. As expected, Technical Products led the way, with profits up over 30% versus prior year. Our top line performance, exceptional cash generation and improved profit are a testament to the actions we've taken to drive revenue and manage costs and working capital,” says Julie Schertell, CEO. “Additionally, we continued to advance key initiatives that will create long-term shareholder value, including expanding in targeted growth platforms with innovative new products, and implementing a global manufacturing model expected to deliver over $20 million in annual savings. I'm encouraged by our progress and momentum, and as we head into 2021 we'll remain focused on initiatives that accelerate growth and increase margins, while maintaining our commitment to a strong balance sheet and providing shareholders with an attractive dividend.”
Technical Products quarterly net sales of $123.5 million in 2020 decreased 6% from $131.7 million in the prior year. The revenue decline was primarily due to lower sales in the performance materials business due to Covid-19 that was only partly offset by increased filtration sales, including media for face masks in Europe introduced earlier this year. Modestly lower net selling prices in 2020 were partly offset by favorable currency effects from a stronger euro.
“I was pleased with third quarter results, as we significantly increased revenues from the second quarter and both segments returned to double-digit EBIT margins. As expected, Technical Products led the way, with profits up over 30% versus prior year. Our top line performance, exceptional cash generation and improved profit are a testament to the actions we've taken to drive revenue and manage costs and working capital,” says Julie Schertell, CEO. “Additionally, we continued to advance key initiatives that will create long-term shareholder value, including expanding in targeted growth platforms with innovative new products, and implementing a global manufacturing model expected to deliver over $20 million in annual savings. I'm encouraged by our progress and momentum, and as we head into 2021 we'll remain focused on initiatives that accelerate growth and increase margins, while maintaining our commitment to a strong balance sheet and providing shareholders with an attractive dividend.”
