Lydall Announces Results for First Quarter Ended March 31, 2001

Apr 24, 2001, 01:00 ET from Lydall, Inc.

    MANCHESTER, Conn., April 24 /PRNewswire Interactive Press Release/ --
 LYDALL, INC. (NYSE:   LDL) today announced financial results for the first
 quarter ended March 31, 2001.
     Income from continuing operations was $1.7 million, or $.11 per diluted
 share, before a pretax impairment loss of $.8 million, or $.03 per share.
 This compares with income from continuing operations of $.18 per diluted share
 in the first quarter of 2000, exclusive of a gain on the sale of a gasket
 business of $.24 per share.
     Net sales for the quarter totaled $58.3 million compared with
 $69.7 million for the same period of 2000.  Gross margin equaled
 $16.6 million, or 28.5 percent of sales, compared with $17.6 million, or
 25.2 percent of sales, for the first quarter 2000.
     On April 2, 2001, Lydall sold certain assets of its fiberboard business
 and announced the corresponding closure of its Tennessee plant.  As a result,
 an impairment charge of $.03 per share on the assets of that business was
 recorded in the first quarter.  Additionally, severance and closing costs of
 $.05 to $.06 per share will be recorded in the second quarter.
     In February 2001, the Company discontinued its Paperboard Segment, which
 consisted primarily of a materials-handling business and a boxboard mill.
 This action resulted in a net gain of $.05 per share.  Prior to being
 discontinued, the segment incurred an operating loss of $.02 per share.  The
 operating results of this segment as well as the gain on disposition have been
 segregated from continuing operations and reported as discontinued operations
 for all periods presented.
 
                                                   1st Quarter Ended
                                                3/31/01         3/31/00
 
     Income from continuing operations
      before nonrecurring events                   $.11            $.18
 
     Impairment charge on assets of
      fiberboard operation                         (.03)             --
 
     Gain on sale of gasket business                 --             .24
 
     Net income from continuing operations          .08             .42
 
     Loss from discontinued operations             (.02)             --
 
     Net gain on discontinuation
      and disposal of segments                      .05             .01
 
     Net Income                                    $.11            $.43
 
     Commenting on the quarter, Christopher R. Skomorowski, President and Chief
 Executive Officer of Lydall, Inc., commented, "The sale of non-core businesses
 and closing of unprofitable operations during the first quarter of 2001
 completed Lydall's previously announced restructuring plan.  We have now
 narrowed Lydall's strategic focus to our two core businesses --
 filtration/separation and thermal/acoustical.  Lydall will also continue to
 operate and grow its Lydall Transport, Ltd. subsidiary, a provider of total
 logistics services and an important service provider to our core businesses.
     "Lower than initially anticipated income in the quarter is attributable to
 lower sales of specialty substrates used in industrial applications such as
 electrical insulation and commercial building materials and industrial thermal
 products used in consumer appliances and high-temperature manufacturing
 processes.  These factors combined with unusually high energy costs
 contributed to a slower than expected start to the year.  Natural gas prices
 have eased during the second quarter and less expensive sources of energy,
 where switching is available, are being utilized to mitigate costs."
     Mr. Skomorowski went on to say, "We view this slow start as a temporary
 setback.  As anticipated, our automotive business is recovering sharply from
 the first quarter, and we continue to benefit from new-product introductions
 to that market.  Our core thermal/acoustical and filtration/separation
 businesses remain healthy, and we are seeing strengthening performance overall
 as we move into the second quarter.  Our financial position is exceptionally
 strong, and we are projecting solid cash flow from operations in 2001.
 Although it remains early in an unusual year, our current pace of improvement
 suggests that attaining the low end of our forecast range of $.90 to $1.05 per
 share is achievable for 2001."
 
     Thermal/Acoustical Segment
     Thermal/Acoustical net sales were $32.1 million, 27 percent lower than the
 first quarter of 2000 and relatively flat with the fourth quarter of 2000.
 The decrease from the same quarter 2000 was attributable to the absence of
 two German operations sold at the end of the third quarter of 2000 which had
 contributed sales of approximately $14 million in the first quarter last year.
 After adjustment for the divested operations, net sales of the
 Thermal/Acoustical Segment increased by approximately $2.0 million over the
 same quarter last year, reflecting healthy growth from new automotive product
 sales during the quarter despite a generally depressed automotive market and
 lower demand for high-temperature industrial materials.
     Operating income for the Thermal/Acoustical Segment was $4.6 million, an
 8 percent improvement over the same quarter last year and about even with the
 fourth quarter of 2000.  Operating margins improved significantly from
 9.7 percent in the first quarter of 2000 to over 14 percent in the first
 quarter of 2001.  The sale of the two unprofitable German operations that had
 been a drain on overall margins accounted for much of the improvement.
     On April 18, 2001, Lydall announced that it had formed a strategic
 alliance with BGF Industries, Inc.  By virtue of the agreement, Lydall is the
 exclusive representative of BGF products for thermal applications in the
 appliance market.  The agreement enhances Lydall's position as a thermal
 solutions provider to the consumer appliance market and significantly broadens
 the Company's product offering in this area.  The Lydall and BGF partnership
 will also focus on new product development.
 
     Filtration/Separation Segment
     Filtration/Separation net sales were $17.6 million, an increase of
 8 percent over the same quarter last year and about even with the fourth
 quarter 2000.  A number of new qualifications for the Company's Bio-Pak(TM)
 customized sterile containers for biopharmaceutical applications were obtained
 during the quarter.  High-efficiency air filtration media sales were
 particularly strong in Europe, and U.S. demand remained solid.  Demand for
 consumer products in particular slowed in the Far East.
     Filtration/Separation operating income was $.6 million lower for the first
 quarter 2001 than for the same quarter in the previous year and $.6 million
 lower than the fourth quarter of 2000 as well.  Lower operating income was
 primarily due to increased raw material costs for air filtration media and
 increased spending associated with the introduction of the Bio-Pak(TM) product
 line.  Price increases were instituted during the quarter to offset increases
 in the cost of microglas and polyester fibers going forward.
     Several new development efforts began in the first quarter of 2001.  A
 high-efficiency membrane media was introduced into consumer and clean space
 markets for HEPA and ULPA filtration.  The products, the first in a family of
 enhanced media, offer higher efficiency, improved airflow, and cleanability.
 Lydall plans to introduce additional new products by combining different
 technologies available within the Company to deliver synthetic pleatable media
 for consumer and commercial industrial markets.  These media will deliver
 increased airflow without sacrificing efficiency.  The introduction of these
 products is in the early stages, and the Company does not expect to see
 significant commercial sales until the latter half of the year.
 
     Other Products and Services
     Net sales of Other Products and Services were 9 percent lower in the first
 quarter of 2001 compared with the first quarter of 2000.  The absence of
 approximately $.5 million of gasket sales, a business that was sold in the
 first quarter of 2000, accounted for a portion of the net decrease.  Lower
 demand for the Company's specialty substrates was partially offset by growth
 of Lydall Transport, Ltd.  The fiberboard business, which was sold at the
 beginning of the second quarter, generated net sales of $1.6 million and was
 essentially breakeven for the first quarter of 2001.
     Operating income of Other Products and Services was down by 23 percent
 from the comparable quarter of 2000 primarily related to lower sales volume.
 Lydall Transport, Ltd. generated operating income improvement in spite of
 exceptionally high fuel costs.
 
     Lydall, Inc. is a New York Stock Exchange listed company, headquartered in
 Manchester, Connecticut.  The Company, with nine operations in the U. S., one
 in France, one in Germany, and offices in Japan, focuses on specialty
 engineered products for the thermal/acoustical and filtration/separation
 markets.
     Stockholders are referred to Lydall's Annual Report and Form 10-K,
 "Management's Discussion and Analysis of Financial Condition and Results of
 Operations - Forward-Looking Information," which outlines certain risks
 regarding the Company's forward-looking statements.  Such risks include:  a
 major downturn of the automotive market, which accounted for approximately
 45 percent of Lydall's first quarter 2001 sales, and significant, unforeseen
 changes in raw material pricing, specifically, aluminum used in most of the
 Company's heat-shield products.  Also, the timing and degree of success of
 new-product programs impact Lydall's projected results.  For further details
 on these risks and other pertinent information on Lydall, copies of the
 Company's Forms 10-K, 10-Q and 8-K are available on Lydall's web site
 (www.lydall.com).  Information may also be obtained from Lydall's toll-free
 investor information service at 877-LDL-NYSE (535-6973).  Company Contact:
 Carole F. Butenas, Vice President - Investor Relations, at One Colonial Road,
 Manchester, CT 06040; Tel. 860-646-1233, e-mail: investor@lydall.com.
 
 
     Summary of Operations
     In thousands except per-share data
     (Unaudited)                                           First Quarter
                                                          Ended March 31,
                                                       2001            2000
 
      Net sales                                     $58,266         $69,733
      Cost of sales                                  41,672          52,135
      Gross margin                                   16,594          17,598
      Selling, product development,
            and administrative expenses              13,510          13,074
      Operating income                                3,084           4,524
      Impairment loss                                   760              --
      Other (income) expense:
            Investment income                           (37)            (16)
            Interest expense                            333             490
            Foreign currency transaction loss           148              76
            Gain from sale of operations                 --          (6,065)
            Other                                        33            (312)
                                                        477          (5,827)
      Income from continuing operations
            before income taxes                       1,847          10,351
      Income tax expense                                610           3,832
      Income from continuing operations               1,237           6,519
      Discontinued operations:
            (Loss) income from operations of
             discontinued segments, net of tax
             (benefit) expense of $(181) and $95,
             respectively                              (308)            215
            Gain on disposal of discontinued
             operations, net of tax expense of $448
                 and $44, respectively                  763              71
      Gain from discontinued operations                 455             286
      Net income                                     $1,692          $6,805
 
      Basic earnings per common share:
            Continuing operations                     $0.08           $0.42
            Discontinued operations                    0.03            0.01
            Net income                                $0.11           $0.43
      Diluted earnings per common share:
            Continuing operations                     $0.08           $0.42
            Discontinued operations                    0.03            0.01
            Net income                                $0.11           $0.43
 
      Weighted average common stock outstanding      15,865          15,706
      Weighted average common stock and
       equivalents outstanding                       15,979          15,740
 
 
     Summary of Segment Information
     In thousands
     (Unaudited)
                                                             First Quarter
                                                            Ended March 31,
                                                        2001              2000
             Net Sales
 
           Thermal/Acoustical                        $32,101           $44,231
           Filtration/Separation                      17,566            16,221
           Other                                       9,316            10,271
           Reconciling Items                            (717)             (990)
           Consolidated Totals                       $58,266           $69,733
 
             Operating Income
 
           Thermal/Acoustical                        $ 4,618           $ 4,283
           Filtration/Separation                       1,784             2,422
           Other                                         677               878
           Reconciling Items                          (3,995)           (3,059)
           Consolidated Totals                       $ 3,084           $ 4,524
 
      Financial Position                              As of
      In thousands except ratio data                March 31,        As of
                                                      2001        December 31,
                                                  (Unaudited)         2000
      Cash, cash equivalents, and
           short-term investments                     $4,166           $2,220
      Working capital                                $46,560          $54,550
      Total debt                                     $19,364          $32,028
      Stockholders' equity                          $113,317         $111,753
      Total capitalization                          $132,681         $143,781
      Current ratio                                     2.21             2.32
      Total debt/total capitalization                    .15             0.22
 
 
     Common Stock Data
     First quarter ended March 31,                      2001              2000
 
     High                                             $11.49             $8.94
     Low                                               $8.69             $6.31
     Last                                             $10.40             $8.75
 
     1,181,500 shares of Lydall common stock (LDL) were traded on the New York
 Stock Exchange during the first quarter of 2001.
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X46555638
 
 

SOURCE Lydall, Inc.
    MANCHESTER, Conn., April 24 /PRNewswire Interactive Press Release/ --
 LYDALL, INC. (NYSE:   LDL) today announced financial results for the first
 quarter ended March 31, 2001.
     Income from continuing operations was $1.7 million, or $.11 per diluted
 share, before a pretax impairment loss of $.8 million, or $.03 per share.
 This compares with income from continuing operations of $.18 per diluted share
 in the first quarter of 2000, exclusive of a gain on the sale of a gasket
 business of $.24 per share.
     Net sales for the quarter totaled $58.3 million compared with
 $69.7 million for the same period of 2000.  Gross margin equaled
 $16.6 million, or 28.5 percent of sales, compared with $17.6 million, or
 25.2 percent of sales, for the first quarter 2000.
     On April 2, 2001, Lydall sold certain assets of its fiberboard business
 and announced the corresponding closure of its Tennessee plant.  As a result,
 an impairment charge of $.03 per share on the assets of that business was
 recorded in the first quarter.  Additionally, severance and closing costs of
 $.05 to $.06 per share will be recorded in the second quarter.
     In February 2001, the Company discontinued its Paperboard Segment, which
 consisted primarily of a materials-handling business and a boxboard mill.
 This action resulted in a net gain of $.05 per share.  Prior to being
 discontinued, the segment incurred an operating loss of $.02 per share.  The
 operating results of this segment as well as the gain on disposition have been
 segregated from continuing operations and reported as discontinued operations
 for all periods presented.
 
                                                   1st Quarter Ended
                                                3/31/01         3/31/00
 
     Income from continuing operations
      before nonrecurring events                   $.11            $.18
 
     Impairment charge on assets of
      fiberboard operation                         (.03)             --
 
     Gain on sale of gasket business                 --             .24
 
     Net income from continuing operations          .08             .42
 
     Loss from discontinued operations             (.02)             --
 
     Net gain on discontinuation
      and disposal of segments                      .05             .01
 
     Net Income                                    $.11            $.43
 
     Commenting on the quarter, Christopher R. Skomorowski, President and Chief
 Executive Officer of Lydall, Inc., commented, "The sale of non-core businesses
 and closing of unprofitable operations during the first quarter of 2001
 completed Lydall's previously announced restructuring plan.  We have now
 narrowed Lydall's strategic focus to our two core businesses --
 filtration/separation and thermal/acoustical.  Lydall will also continue to
 operate and grow its Lydall Transport, Ltd. subsidiary, a provider of total
 logistics services and an important service provider to our core businesses.
     "Lower than initially anticipated income in the quarter is attributable to
 lower sales of specialty substrates used in industrial applications such as
 electrical insulation and commercial building materials and industrial thermal
 products used in consumer appliances and high-temperature manufacturing
 processes.  These factors combined with unusually high energy costs
 contributed to a slower than expected start to the year.  Natural gas prices
 have eased during the second quarter and less expensive sources of energy,
 where switching is available, are being utilized to mitigate costs."
     Mr. Skomorowski went on to say, "We view this slow start as a temporary
 setback.  As anticipated, our automotive business is recovering sharply from
 the first quarter, and we continue to benefit from new-product introductions
 to that market.  Our core thermal/acoustical and filtration/separation
 businesses remain healthy, and we are seeing strengthening performance overall
 as we move into the second quarter.  Our financial position is exceptionally
 strong, and we are projecting solid cash flow from operations in 2001.
 Although it remains early in an unusual year, our current pace of improvement
 suggests that attaining the low end of our forecast range of $.90 to $1.05 per
 share is achievable for 2001."
 
     Thermal/Acoustical Segment
     Thermal/Acoustical net sales were $32.1 million, 27 percent lower than the
 first quarter of 2000 and relatively flat with the fourth quarter of 2000.
 The decrease from the same quarter 2000 was attributable to the absence of
 two German operations sold at the end of the third quarter of 2000 which had
 contributed sales of approximately $14 million in the first quarter last year.
 After adjustment for the divested operations, net sales of the
 Thermal/Acoustical Segment increased by approximately $2.0 million over the
 same quarter last year, reflecting healthy growth from new automotive product
 sales during the quarter despite a generally depressed automotive market and
 lower demand for high-temperature industrial materials.
     Operating income for the Thermal/Acoustical Segment was $4.6 million, an
 8 percent improvement over the same quarter last year and about even with the
 fourth quarter of 2000.  Operating margins improved significantly from
 9.7 percent in the first quarter of 2000 to over 14 percent in the first
 quarter of 2001.  The sale of the two unprofitable German operations that had
 been a drain on overall margins accounted for much of the improvement.
     On April 18, 2001, Lydall announced that it had formed a strategic
 alliance with BGF Industries, Inc.  By virtue of the agreement, Lydall is the
 exclusive representative of BGF products for thermal applications in the
 appliance market.  The agreement enhances Lydall's position as a thermal
 solutions provider to the consumer appliance market and significantly broadens
 the Company's product offering in this area.  The Lydall and BGF partnership
 will also focus on new product development.
 
     Filtration/Separation Segment
     Filtration/Separation net sales were $17.6 million, an increase of
 8 percent over the same quarter last year and about even with the fourth
 quarter 2000.  A number of new qualifications for the Company's Bio-Pak(TM)
 customized sterile containers for biopharmaceutical applications were obtained
 during the quarter.  High-efficiency air filtration media sales were
 particularly strong in Europe, and U.S. demand remained solid.  Demand for
 consumer products in particular slowed in the Far East.
     Filtration/Separation operating income was $.6 million lower for the first
 quarter 2001 than for the same quarter in the previous year and $.6 million
 lower than the fourth quarter of 2000 as well.  Lower operating income was
 primarily due to increased raw material costs for air filtration media and
 increased spending associated with the introduction of the Bio-Pak(TM) product
 line.  Price increases were instituted during the quarter to offset increases
 in the cost of microglas and polyester fibers going forward.
     Several new development efforts began in the first quarter of 2001.  A
 high-efficiency membrane media was introduced into consumer and clean space
 markets for HEPA and ULPA filtration.  The products, the first in a family of
 enhanced media, offer higher efficiency, improved airflow, and cleanability.
 Lydall plans to introduce additional new products by combining different
 technologies available within the Company to deliver synthetic pleatable media
 for consumer and commercial industrial markets.  These media will deliver
 increased airflow without sacrificing efficiency.  The introduction of these
 products is in the early stages, and the Company does not expect to see
 significant commercial sales until the latter half of the year.
 
     Other Products and Services
     Net sales of Other Products and Services were 9 percent lower in the first
 quarter of 2001 compared with the first quarter of 2000.  The absence of
 approximately $.5 million of gasket sales, a business that was sold in the
 first quarter of 2000, accounted for a portion of the net decrease.  Lower
 demand for the Company's specialty substrates was partially offset by growth
 of Lydall Transport, Ltd.  The fiberboard business, which was sold at the
 beginning of the second quarter, generated net sales of $1.6 million and was
 essentially breakeven for the first quarter of 2001.
     Operating income of Other Products and Services was down by 23 percent
 from the comparable quarter of 2000 primarily related to lower sales volume.
 Lydall Transport, Ltd. generated operating income improvement in spite of
 exceptionally high fuel costs.
 
     Lydall, Inc. is a New York Stock Exchange listed company, headquartered in
 Manchester, Connecticut.  The Company, with nine operations in the U. S., one
 in France, one in Germany, and offices in Japan, focuses on specialty
 engineered products for the thermal/acoustical and filtration/separation
 markets.
     Stockholders are referred to Lydall's Annual Report and Form 10-K,
 "Management's Discussion and Analysis of Financial Condition and Results of
 Operations - Forward-Looking Information," which outlines certain risks
 regarding the Company's forward-looking statements.  Such risks include:  a
 major downturn of the automotive market, which accounted for approximately
 45 percent of Lydall's first quarter 2001 sales, and significant, unforeseen
 changes in raw material pricing, specifically, aluminum used in most of the
 Company's heat-shield products.  Also, the timing and degree of success of
 new-product programs impact Lydall's projected results.  For further details
 on these risks and other pertinent information on Lydall, copies of the
 Company's Forms 10-K, 10-Q and 8-K are available on Lydall's web site
 (www.lydall.com).  Information may also be obtained from Lydall's toll-free
 investor information service at 877-LDL-NYSE (535-6973).  Company Contact:
 Carole F. Butenas, Vice President - Investor Relations, at One Colonial Road,
 Manchester, CT 06040; Tel. 860-646-1233, e-mail: investor@lydall.com.
 
 
     Summary of Operations
     In thousands except per-share data
     (Unaudited)                                           First Quarter
                                                          Ended March 31,
                                                       2001            2000
 
      Net sales                                     $58,266         $69,733
      Cost of sales                                  41,672          52,135
      Gross margin                                   16,594          17,598
      Selling, product development,
            and administrative expenses              13,510          13,074
      Operating income                                3,084           4,524
      Impairment loss                                   760              --
      Other (income) expense:
            Investment income                           (37)            (16)
            Interest expense                            333             490
            Foreign currency transaction loss           148              76
            Gain from sale of operations                 --          (6,065)
            Other                                        33            (312)
                                                        477          (5,827)
      Income from continuing operations
            before income taxes                       1,847          10,351
      Income tax expense                                610           3,832
      Income from continuing operations               1,237           6,519
      Discontinued operations:
            (Loss) income from operations of
             discontinued segments, net of tax
             (benefit) expense of $(181) and $95,
             respectively                              (308)            215
            Gain on disposal of discontinued
             operations, net of tax expense of $448
                 and $44, respectively                  763              71
      Gain from discontinued operations                 455             286
      Net income                                     $1,692          $6,805
 
      Basic earnings per common share:
            Continuing operations                     $0.08           $0.42
            Discontinued operations                    0.03            0.01
            Net income                                $0.11           $0.43
      Diluted earnings per common share:
            Continuing operations                     $0.08           $0.42
            Discontinued operations                    0.03            0.01
            Net income                                $0.11           $0.43
 
      Weighted average common stock outstanding      15,865          15,706
      Weighted average common stock and
       equivalents outstanding                       15,979          15,740
 
 
     Summary of Segment Information
     In thousands
     (Unaudited)
                                                             First Quarter
                                                            Ended March 31,
                                                        2001              2000
             Net Sales
 
           Thermal/Acoustical                        $32,101           $44,231
           Filtration/Separation                      17,566            16,221
           Other                                       9,316            10,271
           Reconciling Items                            (717)             (990)
           Consolidated Totals                       $58,266           $69,733
 
             Operating Income
 
           Thermal/Acoustical                        $ 4,618           $ 4,283
           Filtration/Separation                       1,784             2,422
           Other                                         677               878
           Reconciling Items                          (3,995)           (3,059)
           Consolidated Totals                       $ 3,084           $ 4,524
 
      Financial Position                              As of
      In thousands except ratio data                March 31,        As of
                                                      2001        December 31,
                                                  (Unaudited)         2000
      Cash, cash equivalents, and
           short-term investments                     $4,166           $2,220
      Working capital                                $46,560          $54,550
      Total debt                                     $19,364          $32,028
      Stockholders' equity                          $113,317         $111,753
      Total capitalization                          $132,681         $143,781
      Current ratio                                     2.21             2.32
      Total debt/total capitalization                    .15             0.22
 
 
     Common Stock Data
     First quarter ended March 31,                      2001              2000
 
     High                                             $11.49             $8.94
     Low                                               $8.69             $6.31
     Last                                             $10.40             $8.75
 
     1,181,500 shares of Lydall common stock (LDL) were traded on the New York
 Stock Exchange during the first quarter of 2001.
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X46555638
 
 SOURCE  Lydall, Inc.