As Lydall releases figures for the second quarter of 2009, CEO Dale Barnhart says the company is well positioned to deliver improved financial results and cash generation during the remainder of 2009.
Net sales for the second quarter were $56m compared to $84m for the same period in 2008.
Excluding the impact of foreign currency translation, net sales decreased by $24.6m or 29.3% in the second quarter of 2009, compared with the second quarter of 2008.
Net sales for the six months ended 30th June 2009 were $110.3m compared with $173.9m for the comparable period of 2008.
Excluding the impact of foreign currency translation, net sales decreased by $57m, or 32.8%, in the first half of 2009 compared with the first half of last year.
Dale Barnhart, President and Chief Executive Officer commented, $quot;Difficult global economic conditions continued to impact all of the markets that Lydall serves, negatively affecting our financial results for the second quarter.”
“Again this quarter, the Thermal/Acoustical segment was impacted by exceptionally low automobile production in the U.S. and Europe. Our Performance Materials segment and Other Products and Services were also impacted by lower demand.”
$quot;We remained focused on aggressively lowering our cost structure, managing cash, and reducing working capital. From a working capital perspective, we reduced our inventory levels by $5.2 million, or 12%, at June 30, 2009 as compared to March 31, 2009.”
“Continued cost reductions included a further reduction in our global workforce by approximately 10% since the end of the first quarter. Overall, since June 30, 2008, the Company has lowered its total headcount by approximately 27%.”
“Despite the company's net loss for the second quarter of 2009, the company's working capital improvements and management of cash resulted in it generating cash from operating activities in the quarter.”
$quot;Going forward in 2009, we anticipate the significant progress we have made in improving our business operating processes through Lean Six Sigma, coupled with the major cost reductions from the North American automotive consolidation, will improve the Company's financial results as our markets begin to stabilize.”
“We have managed the impact of the global recession on revenue by rapidly reducing our cost structure which has allowed the company to fund the automotive consolidation and key growth initiatives while maintaining a healthy balance sheet with no significant debt. I believe Lydall is well positioned to deliver improved financial results and cash generation during the remainder of 2009.$quot;