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Nederman Holding AB, Sweden
COMPANY WATCH
Nederman Holding AB, Sweden
Lydall Inc, USA
Key Figures (US$ million) Third quarter ended 30.9 2016 2015
Net Sales Of Which: Performance Materials Technical Nonwovens
155.7 28.8 52.3
26.4 34.2
Cost of Sales
117.5
99.5
R&D Expenses
Gross Margin
38.2
31.7
Operating Income/(Loss) Of Which: Performance Materials Technical Nonwovens
18.3
14.8
3.3 5.7
2.5 3.6
Net Income/(Loss)
12.8
11.2
Net Sales
2287.2
2299.4
Cost of Goods Sold
1477.7
1485.3
809.5
814.1
6.0
3.7
Operating Profit
164.8
153.8
Net Result
111.0
91.5
131.2
Key Figures (SEK million) Third quarter ended 30.9 2016 2015
Nine months ended 30.9 2016 2015
Net Sales Of Which: Performance Materials Technical Nonwovens
422.7
393.1
85.2 111.3
77.5 104.3
Cost of Sales
316.1
299.8
Gross Margin
106.6
93.3
Operating Income/(Loss) Of Which: Performance Materials Technical Nonwovens
47.5
41.9
10.1 12.8
6.1 11.1
Net Income/(Loss)
32.8
40.9
COMMENT Lydall has posted third quarter fiscal 2016 net sales of US$155.7 million, up 18.7% on the year prior. Sales were up in all four of the company’s segments, with the biggest rise of 53.1% in the Technical Nonwovens division reflecting its acquisition of Texel. Technical Nonwovens segment sales surged to US$52.3 million, with the US$23.2 million contribution from Texel offsetting lower demand for power generation industrial filtration products. Revenues in the Performance Materials segment were up 9.0% on the 2015 comparator at US$28.8 million primarily
December 2016
due to improved demand for filtration products, particularly in North America and Europe, coupled with additional sales from new product development launches in Europe. Net profit for the period was up 14.3% on the year earlier at US$12.8 million. Dale Barnhart, Lydall’s president and CEO, said he expected the improved demand enjoyed by the filtration markets in its Performance Materials segment to continue for the remainder of the year, although this would be tempered by planned fourth quarter shutdowns at certain customers. n www.lydall.com
Net Sales
792.0
796.7
Cost of Goods Sold
512.3
515.3
Gross Profit
279.7
281.4
1.7
1.2
Operating Profit
68.6
51.4
Net Result
47.9
28.7
Nine months ended 30.9 2016 2015
Gross Profit R&D Expenses
COMMENT Industrial air filtration specialist Nederman had a mixed third quarter of fiscal 2016 with net sales and new orders both down on year earlier, but profitability increasing. Net sales for the period reached SEK792.0 million, down 0.6% on the prior year. Orders were more severely impacted, falling 17.7% to SEK696.6 million. In contrast, operating profit for the quarter was up 33.5% on the 2015 comparator at SEK68.6 million, while net profit surged 66.9% to SEK47.9 million. Nederman’s CEO Sven Kristensson said the company had seen weak demand in Europe during June and July after the UK’s decision to leave the European Union, but there had been a strong recovery in September. “The European
market is judged now to be considerably more stable than right after the UK referendum,” he said. Kristensson added that notable achievements in the quarter had included the completion of the planned cost and structural adjustments in its Thailand and Australia operations. For the corresponding nine month period, Nederman’s net sales were down 0.5% to SEK2.3 billion, while its new orders were down 11.4% at SEK2.2 billion. “Our greatest challenge is the uncertainty around sales of major projects in the USA and China,” Kristensson outlined. “Demand in the USA has been affected by the slowdown in industrial production in the last 12 months.” n www.nederman.com
Filtration Industry Analyst
11
Nederman Holding AB, Sweden
Lydall Inc, USA
Key Figures (US$ million) Third quarter ended 30.9 2016 2015
Net Sales Of Which: Performance Materials Technical Nonwovens
155.7 28.8 52.3
26.4 34.2
Cost of Sales
117.5
99.5
R&D Expenses
Gross Margin
38.2
31.7
Operating Income/(Loss) Of Which: Performance Materials Technical Nonwovens
18.3
14.8
3.3 5.7
2.5 3.6
Net Income/(Loss)
12.8
11.2
Net Sales
2287.2
2299.4
Cost of Goods Sold
1477.7
1485.3
809.5
814.1
6.0
3.7
Operating Profit
164.8
153.8
Net Result
111.0
91.5
131.2
Key Figures (SEK million) Third quarter ended 30.9 2016 2015
Nine months ended 30.9 2016 2015
Net Sales Of Which: Performance Materials Technical Nonwovens
422.7
393.1
85.2 111.3
77.5 104.3
Cost of Sales
316.1
299.8
Gross Margin
106.6
93.3
Operating Income/(Loss) Of Which: Performance Materials Technical Nonwovens
47.5
41.9
10.1 12.8
6.1 11.1
Net Income/(Loss)
32.8
40.9
COMMENT Lydall has posted third quarter fiscal 2016 net sales of US$155.7 million, up 18.7% on the year prior. Sales were up in all four of the company’s segments, with the biggest rise of 53.1% in the Technical Nonwovens division reflecting its acquisition of Texel. Technical Nonwovens segment sales surged to US$52.3 million, with the US$23.2 million contribution from Texel offsetting lower demand for power generation industrial filtration products. Revenues in the Performance Materials segment were up 9.0% on the 2015 comparator at US$28.8 million primarily
December 2016
due to improved demand for filtration products, particularly in North America and Europe, coupled with additional sales from new product development launches in Europe. Net profit for the period was up 14.3% on the year earlier at US$12.8 million. Dale Barnhart, Lydall’s president and CEO, said he expected the improved demand enjoyed by the filtration markets in its Performance Materials segment to continue for the remainder of the year, although this would be tempered by planned fourth quarter shutdowns at certain customers. n www.lydall.com
Net Sales
792.0
796.7
Cost of Goods Sold
512.3
515.3
Gross Profit
279.7
281.4
1.7
1.2
Operating Profit
68.6
51.4
Net Result
47.9
28.7
Nine months ended 30.9 2016 2015
Gross Profit R&D Expenses
COMMENT Industrial air filtration specialist Nederman had a mixed third quarter of fiscal 2016 with net sales and new orders both down on year earlier, but profitability increasing. Net sales for the period reached SEK792.0 million, down 0.6% on the prior year. Orders were more severely impacted, falling 17.7% to SEK696.6 million. In contrast, operating profit for the quarter was up 33.5% on the 2015 comparator at SEK68.6 million, while net profit surged 66.9% to SEK47.9 million. Nederman’s CEO Sven Kristensson said the company had seen weak demand in Europe during June and July after the UK’s decision to leave the European Union, but there had been a strong recovery in September. “The European
market is judged now to be considerably more stable than right after the UK referendum,” he said. Kristensson added that notable achievements in the quarter had included the completion of the planned cost and structural adjustments in its Thailand and Australia operations. For the corresponding nine month period, Nederman’s net sales were down 0.5% to SEK2.3 billion, while its new orders were down 11.4% at SEK2.2 billion. “Our greatest challenge is the uncertainty around sales of major projects in the USA and China,” Kristensson outlined. “Demand in the USA has been affected by the slowdown in industrial production in the last 12 months.” n www.nederman.com
Filtration Industry Analyst
11