Manchester filtration-thermal/acoustics-sealing products maker Lydall Inc. Wednesday reported a $70.5 million fourth-quarter loss as declining sales and a major impairment charge to one its business segments sunk its bottom line.
Lydall’s $4.07 per share fourth-quarter loss reversed a $7.2 million, or 42 cents per share, profit reported in the year-ago period.
During the quarter, Lydall was forced to write down the value of a key business segment — performance materials — that created a $64.2 million impairment charge against its bottom line. The performance materials business, which offers filtration and insulation products for air, fluid power, and industrial applications, saw its sales decline 15% during the quarter to $55.8 million.
The company’s overall sales for the quarter totaled $193.3 million, down 7% from the year-ago period. Lydall’s technical nonwovens business also saw lower sales.
Lydall’s stock was down about 7% in early morning trading Wednesday to $19.46.
“Fourth quarter results were disappointing,” said Randall B. Gonzales, Lydall’s executive vice president and CFO. “Organic sales declined 8.3% on further weakening of demand for fiber based gasket solutions in the interface business, lower demand for industrial filtration products in China and Europe, and lower domestic automotive volumes attributable to the General Motors strike.”
For the year Lydall posted a $70.5 million, $4.08 per share, loss compared a $34.6 million, or $2.03 per share, profit in 2018.
