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Nederman Holding AB, Sweden
COMPANY WATCH
Lydall Inc, USA
Nederman Holding AB, Sweden
Key Figures (US$ million) Second quarter ended 30.6 2016
Key Figures (SEK million) Second quarter ended 30.6 2016
2015
Order Intake
726.5
812.2
Net Sales
770.5
775.5
Cost of Goods Sold
489.8
499.5
Gross Profit
280.7
276.0
2015
Net Sales Of Which: Performance Materials Segment Industrial Filtration Segment
137.2
134.6
30.0 27.8
26.0 35.9
Operating Income Of Which: Performance Materials Segment Industrial Filtration Segment
15.5
17.0
4.7 3.2
2.3 4.6
Net Income
10.8
10.8
R&D Expenses
Six months ended 30.6 2016 266.9
261.9
56.3 59.0
51.1 70.1
Operating Income Of Which: Performance Materials Segment Industrial Filtration Segment
29.2
27.1
6.8 7.1
3.6 7.7
Net Income
20.0
29.8
Filtration Industry Analyst
64.3
Net Result
43.1
38.9
Six months ended 30.6 2016
2015
Order Intake
1465.3
1592.9
Net Sales
1495.2
1502.7
Cost of Goods Sold
965.4
970.0
Gross Profit
529.8
532.7
4.3
2.5
Operating Profit
96.2
102.4
Net Result
63.2
62.8
R&D Expenses
COMMENT
COMMENT
10
1.0
65.4
2015
Net Sales Of Which: Performance Materials Segment Industrial Filtration Segment
Lydall Inc’s net sales in the second quarter of 2016 increased 2.0% to US$137.2 million, compared to US$134.6 million in the second quarter of 2015. Increased net sales in the Performance Materials, Thermal/Acoustical Fibers and Thermal/Acoustical Metals segments of 15.1%, 13.2% and 9.2%, respectively, were partially offset by a sales decline of 22.5% in the Industrial Filtration segment. Net income in the second quarter of 2016 was US$10.8 million, compared to US$10.8 million in the second quarter of 2015. Dale Barnhart, Lydall president and CEO, said that from a revenue perspective, the Performance Materials segment reported sales growth of 15.1% due to share and market gains in air filtration, and to a lesser
2.3
Operating Profit
extent, timing of certain sales in life sciences filtration. The company also continued to benefit from solid performance in the Thermal/Acoustical Fibers and Thermal/Acoustical Metals segments. “In the Industrial Filtration segment, weakness in the power generation markets persisted as well as general market softness in China, resulting in a sales decline of 22.5% quarter-onquarter, but the business was able to improve gross margin as a result of favourable product mix and lower raw material costs,” said Barnhart. Starting with the third quarter 2016 reporting, the recently acquired Texel will be included in Lydall’s Industrial Filtration operating segment, which will be renamed Technical Nonwovens. ■ www.lydall.com
Industrial air filtration specialist Nederman has posted net sales of SEK770.5 million for the second quarter of fiscal 2016, a decrease of 0.6% on the prior year. On an organic basis they fell 0.2%. Orders were down more sharply falling 10.5%, or 10.3% on an organic basis, to SEK726.5 million. “The low orders received is primarily due to the time lag in major projects in North America, which resulted in no major orders booked in this market during the quarter,” Nederman’s CEO Sven Kristensson said. “The number of projects tendered for in North America is still at a good level, but it is difficult to predict when these projects will be taken forward.” New orders plummeted 21.3% in the Americas to
SEK544.7 million and also fell in the Europe, Middle East and Africa (EMEA) region, where they were down 3.1% to SEK721.5 million. In contrast they were up 27.6% in the company’s Asia Pacific markets to SEK199.1 million, although Kristensson added that the region still posed challenges. “We are prepared to invest in Asia but recognise at the same time that profitability in the business segment is not satisfactory,” he said. “We are therefore implementing measures to further review our operations in the region and to adapt our offering to a greater extent to the market conditions. These measures have already given rise to some improvement during the quarter.” ■ www.nederman.com
September 2016
Lydall Inc, USA
Nederman Holding AB, Sweden
Key Figures (US$ million) Second quarter ended 30.6 2016
Key Figures (SEK million) Second quarter ended 30.6 2016
2015
Order Intake
726.5
812.2
Net Sales
770.5
775.5
Cost of Goods Sold
489.8
499.5
Gross Profit
280.7
276.0
2015
Net Sales Of Which: Performance Materials Segment Industrial Filtration Segment
137.2
134.6
30.0 27.8
26.0 35.9
Operating Income Of Which: Performance Materials Segment Industrial Filtration Segment
15.5
17.0
4.7 3.2
2.3 4.6
Net Income
10.8
10.8
R&D Expenses
Six months ended 30.6 2016 266.9
261.9
56.3 59.0
51.1 70.1
Operating Income Of Which: Performance Materials Segment Industrial Filtration Segment
29.2
27.1
6.8 7.1
3.6 7.7
Net Income
20.0
29.8
Filtration Industry Analyst
64.3
Net Result
43.1
38.9
Six months ended 30.6 2016
2015
Order Intake
1465.3
1592.9
Net Sales
1495.2
1502.7
Cost of Goods Sold
965.4
970.0
Gross Profit
529.8
532.7
4.3
2.5
Operating Profit
96.2
102.4
Net Result
63.2
62.8
R&D Expenses
COMMENT
COMMENT
10
1.0
65.4
2015
Net Sales Of Which: Performance Materials Segment Industrial Filtration Segment
Lydall Inc’s net sales in the second quarter of 2016 increased 2.0% to US$137.2 million, compared to US$134.6 million in the second quarter of 2015. Increased net sales in the Performance Materials, Thermal/Acoustical Fibers and Thermal/Acoustical Metals segments of 15.1%, 13.2% and 9.2%, respectively, were partially offset by a sales decline of 22.5% in the Industrial Filtration segment. Net income in the second quarter of 2016 was US$10.8 million, compared to US$10.8 million in the second quarter of 2015. Dale Barnhart, Lydall president and CEO, said that from a revenue perspective, the Performance Materials segment reported sales growth of 15.1% due to share and market gains in air filtration, and to a lesser
2.3
Operating Profit
extent, timing of certain sales in life sciences filtration. The company also continued to benefit from solid performance in the Thermal/Acoustical Fibers and Thermal/Acoustical Metals segments. “In the Industrial Filtration segment, weakness in the power generation markets persisted as well as general market softness in China, resulting in a sales decline of 22.5% quarter-onquarter, but the business was able to improve gross margin as a result of favourable product mix and lower raw material costs,” said Barnhart. Starting with the third quarter 2016 reporting, the recently acquired Texel will be included in Lydall’s Industrial Filtration operating segment, which will be renamed Technical Nonwovens. ■ www.lydall.com
Industrial air filtration specialist Nederman has posted net sales of SEK770.5 million for the second quarter of fiscal 2016, a decrease of 0.6% on the prior year. On an organic basis they fell 0.2%. Orders were down more sharply falling 10.5%, or 10.3% on an organic basis, to SEK726.5 million. “The low orders received is primarily due to the time lag in major projects in North America, which resulted in no major orders booked in this market during the quarter,” Nederman’s CEO Sven Kristensson said. “The number of projects tendered for in North America is still at a good level, but it is difficult to predict when these projects will be taken forward.” New orders plummeted 21.3% in the Americas to
SEK544.7 million and also fell in the Europe, Middle East and Africa (EMEA) region, where they were down 3.1% to SEK721.5 million. In contrast they were up 27.6% in the company’s Asia Pacific markets to SEK199.1 million, although Kristensson added that the region still posed challenges. “We are prepared to invest in Asia but recognise at the same time that profitability in the business segment is not satisfactory,” he said. “We are therefore implementing measures to further review our operations in the region and to adapt our offering to a greater extent to the market conditions. These measures have already given rise to some improvement during the quarter.” ■ www.nederman.com
September 2016