Lydall Divests Covington Operation; Completes Strategic Restructure

Apr 03, 2001, 01:00 ET from Lydall, Inc.

    MANCHESTER, Conn., April 3 /PRNewswire/ -- Lydall, Inc. (NYSE:   LDL)
 announced the sale of certain assets, including the customer list, of Lydall
 Composite Materials, Covington Operation to Bennett Fleet (Chambly) Inc., a
 Canadian producer and distributor of boxboard, containerboard and specialty
 boards.  In addition, management of the Composite Materials Operation, a small
 fiberboard manufacturer located in Covington, Tennessee, notified the plant's
 45 employees, the Town of Covington, and the State of Tennessee that it would
 be closing the Operation on June 1, 2001.
     At a meeting held today, Steve Floyd, general manager of the Covington
 Operation, told employees that every effort was made to sell the Operation as
 an ongoing business and keep employment in Tennessee.  He said that severely
 declining demand for the operation's two main products -- shoe insole and
 counter materials and composite pencil slats -- made such a sale impossible.
 Mr. Floyd announced that he does not expect to operate the plant between today
 and June 1 except for finishing some converting operations.  He reported that
 Lydall is making outplacement services immediately available to all employees,
 and he assured employees that their pay and benefits would be continued at
 least through June 1.  Additional severance benefits are being offered to
 Composite Materials employees based on years of service.
     Mr. Floyd further commented,  "We deeply regret having to close the
 Covington Operation.  The men and women employed here are dedicated and
 skillful people, and we are committed to easing their transition from Lydall
 to other area employers."
     Walter A. Ruschmeyer, executive vice president and CFO of Lydall, Inc.,
 commented,  "The proceeds from the sale of assets to Bennett Fleet are
 expected to partially offset the costs associated with the closing of the
 Covington Operation.  We expect to incur a net after-tax loss on the sale and
 closing of approximately $1.0 million to $1.3 million, or $.06 to $.08 per
 share, a portion of which will be reflected in the first quarter ended March
 31, 2001 and the remainder of which will be recorded in the second quarter
 ended June 30, 2001."
     With regard to the land, building and remaining assets in Covington, Mr.
 Ruschmeyer said,  "We are actively pursuing the sale of the property and
 equipment and are exploring several opportunities."
     He commented further,  "The sale of the Composite Materials business
 completes Lydall's previously announced restructuring plan.  We have now
 narrowed Lydall's strategic focus on 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 component of our core businesses."
     Lydall, Inc. is a New York Stock Exchange listed company, headquartered in
 Manchester, Connecticut.  The Company, with 9 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 46
 percent of Lydall's fourth quarter 2000 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.
 
 

SOURCE Lydall, Inc.
    MANCHESTER, Conn., April 3 /PRNewswire/ -- Lydall, Inc. (NYSE:   LDL)
 announced the sale of certain assets, including the customer list, of Lydall
 Composite Materials, Covington Operation to Bennett Fleet (Chambly) Inc., a
 Canadian producer and distributor of boxboard, containerboard and specialty
 boards.  In addition, management of the Composite Materials Operation, a small
 fiberboard manufacturer located in Covington, Tennessee, notified the plant's
 45 employees, the Town of Covington, and the State of Tennessee that it would
 be closing the Operation on June 1, 2001.
     At a meeting held today, Steve Floyd, general manager of the Covington
 Operation, told employees that every effort was made to sell the Operation as
 an ongoing business and keep employment in Tennessee.  He said that severely
 declining demand for the operation's two main products -- shoe insole and
 counter materials and composite pencil slats -- made such a sale impossible.
 Mr. Floyd announced that he does not expect to operate the plant between today
 and June 1 except for finishing some converting operations.  He reported that
 Lydall is making outplacement services immediately available to all employees,
 and he assured employees that their pay and benefits would be continued at
 least through June 1.  Additional severance benefits are being offered to
 Composite Materials employees based on years of service.
     Mr. Floyd further commented,  "We deeply regret having to close the
 Covington Operation.  The men and women employed here are dedicated and
 skillful people, and we are committed to easing their transition from Lydall
 to other area employers."
     Walter A. Ruschmeyer, executive vice president and CFO of Lydall, Inc.,
 commented,  "The proceeds from the sale of assets to Bennett Fleet are
 expected to partially offset the costs associated with the closing of the
 Covington Operation.  We expect to incur a net after-tax loss on the sale and
 closing of approximately $1.0 million to $1.3 million, or $.06 to $.08 per
 share, a portion of which will be reflected in the first quarter ended March
 31, 2001 and the remainder of which will be recorded in the second quarter
 ended June 30, 2001."
     With regard to the land, building and remaining assets in Covington, Mr.
 Ruschmeyer said,  "We are actively pursuing the sale of the property and
 equipment and are exploring several opportunities."
     He commented further,  "The sale of the Composite Materials business
 completes Lydall's previously announced restructuring plan.  We have now
 narrowed Lydall's strategic focus on 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 component of our core businesses."
     Lydall, Inc. is a New York Stock Exchange listed company, headquartered in
 Manchester, Connecticut.  The Company, with 9 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 46
 percent of Lydall's fourth quarter 2000 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.
 
 SOURCE  Lydall, Inc.