11.07.24
Mativ reported earnings results for the three months ended September 30, 2024. On November 30, 2023, Mativ completed the sale of its Engineered Papers business. Financial results for continuing operations exclude Engineered Papers in all periods. Mativ’s sales of $498.5 million increased 0.1% year over year, and 1.4% on an organic basis.
Filtration & Advanced Materials (FAM) segment sales, comprised primarily of filtration media and components, advanced films, coating and converting solutions, and extruded mesh products, were $189.6 million, down 3.2% versus the prior year period, as higher volumes in filtration & netting were more than offset by lower volumes in advanced films along with lower selling prices.
CEO Julie Schertell comments, "We saw meaningful increases in volume and profitability in Filtration and our overall SAS segment during the third quarter, with SAS (Sustainable & Adhesive Solutions) segment adjusted EBITDA increasing almost 20% year over year. This was somewhat offset by results in Advanced Films, which were impacted by automotive and construction end markets. As such, we have launched a turnaround effort specific to Advanced Films focused on demand generation, operational performance and increased customer and end market diversification. This turnaround effort will be similar to the approach we used for Healthcare throughout 2023, which year-to-date, resulted in above-market sales growth of more than 5% and materially improved profitability versus the same period in 2023.
“Given the prevailing macro-economic conditions and the slow pace of demand recovery, we continue to prioritize those things that we can control and execute on actions to mitigate external market factors, such as the $20 million reduction in non-operating cost announced earlier this year. Additionally, we are increasing capacity in our growth categories of filtration, specialty tapes, release liners and medical films, while at the same time reducing cost and optimizing our supply chain by reducing our plant footprint from 48 sites at the time of the merger to 35 sites today and our warehousing footprint by more than 25%. These actions reduce cost and complexity, and support sustained margin improvements as demand returns.”
Filtration & Advanced Materials (FAM) segment sales, comprised primarily of filtration media and components, advanced films, coating and converting solutions, and extruded mesh products, were $189.6 million, down 3.2% versus the prior year period, as higher volumes in filtration & netting were more than offset by lower volumes in advanced films along with lower selling prices.
CEO Julie Schertell comments, "We saw meaningful increases in volume and profitability in Filtration and our overall SAS segment during the third quarter, with SAS (Sustainable & Adhesive Solutions) segment adjusted EBITDA increasing almost 20% year over year. This was somewhat offset by results in Advanced Films, which were impacted by automotive and construction end markets. As such, we have launched a turnaround effort specific to Advanced Films focused on demand generation, operational performance and increased customer and end market diversification. This turnaround effort will be similar to the approach we used for Healthcare throughout 2023, which year-to-date, resulted in above-market sales growth of more than 5% and materially improved profitability versus the same period in 2023.
“Given the prevailing macro-economic conditions and the slow pace of demand recovery, we continue to prioritize those things that we can control and execute on actions to mitigate external market factors, such as the $20 million reduction in non-operating cost announced earlier this year. Additionally, we are increasing capacity in our growth categories of filtration, specialty tapes, release liners and medical films, while at the same time reducing cost and optimizing our supply chain by reducing our plant footprint from 48 sites at the time of the merger to 35 sites today and our warehousing footprint by more than 25%. These actions reduce cost and complexity, and support sustained margin improvements as demand returns.”
