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"Lydall Announces Financial Results for the Third Quarter Ended September 30, 2015
Lydall, Inc.
11 minutes ago


Adjusted EPS of $0.59 per share, up 44% from adjusted Q3 2014 EPS
Sales of $131.2 million, with organic sales growth of 5.9%
Gross margin of 24.1%, up 280 basis points
Operating margin of 11.3%, up 330 basis points versus adjusted Q3 2014

MANCHESTER, Conn., Nov. 03, 2015 (GLOBE NEWSWIRE) -- Lydall, Inc. (LDL) today announced financial results for the third quarter ended September 30, 2015.

Net sales were $131.2 million compared to $134.2 million in the third quarter of 2014. Organic sales growth of 5.9% was offset by unfavorable foreign currency translation and the divestiture of a non-core business in the first quarter of 2015.

Net income was $11.2 million, or $0.66 per diluted share, compared to $4.2 million, or $0.24 per diluted share, in the third quarter of 2014. Excluding discrete tax benefits of approximately $1.2 million, or $0.07 per share, adjusted earnings per share were $0.59, compared to adjusted earnings per share of $0.41 for the third quarter of 2014.

Dale Barnhart, President and Chief Executive Officer, stated, “We achieved another strong quarter delivering solid organic growth, excellent margin expansion and markedly improved earnings per share. The Fibers and Industrial Filtration segments both delivered double-digit organic sales growth, while the Metals segment achieved organic sales growth in excess of 9%. These increases were due to robust demand from the automotive platforms we serve and continued execution in driving planned synergy programs in the Industrial Filtration segment. Our Performance Materials segment reported a marginal reduction in organic sales primarily from lower demand for insulation products, as we continue to experience oil price-driven market softness. In terms of profitability, the Fibers segment was the most significant contributor to the Company’s overall expansion in margin due to higher parts sales, lower raw material costs and labor and overhead efficiencies.”

Below are financial highlights comparing quarter ended September 30, 2015 (“Q3 2015”) results to quarter ended September 30, 2014 (“Q3 2014”) results:

Net sales decreased by $3.0 million, or 2.2%; organic sales grew by 5.9% and tooling net sales increased by 0.5%; these results were offset by 4.8% of unfavorable foreign currency translation and lower net sales as a result of a divested business of 3.8%;
Gross margin increased 280 basis points to 24.1%, compared to 21.3% in Q3 2014, primarily due to improvements in the Thermal/Acoustical Fibers, Industrial Filtration and Performance Materials segments;
Operating margin was 11.3% in Q3 2015, compared to 4.3% in Q3 2014; adjusted operating margin was 8.0% in Q3 2014, which excluded a one-time pension settlement expense of $4.9 million, operating income of $0.5 million from a divested business and a purchase accounting adjustment of $0.2 million related to the Industrial Filtration acquisition; and
Effective tax rate was 24.4%, compared to 30.2% in Q3 2014, resulting from discrete tax benefits of approximately $1.2 million in the third quarter of 2015, which primarily related to research and development tax credits and the release of reserves for previously uncertain tax positions for tax years that have statutorily closed.

Mr. Barnhart added, “Looking forward to the remainder of 2015, we expect to close out the year with another solid quarter, with anticipated sales and earnings growth compared to the final quarter of 2014. Demand for our automotive products in the Fibers and Metals segments continues to be strong in both North America and Europe. We are seeing stable global order activity in the Industrial Filtration segment, and expect market conditions affecting our Performance Materials segment to be consistent with recent periods.” ......................"

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