Lydall Provides COVID-19-Related Business Update Announces Ramp-down of its Automotive Facilities
March 20 2020 - 4:15PM
LYDALL, INC. (NYSE: LDL) today announced the ramp-down of its
manufacturing facilities in Hamptonville and Yadkinville, North
Carolina; Meinerzhagen, Germany; and St. Nazaire, France in
response to a number of Lydall’s largest automotive OEM customers
having temporarily ceased operations due to the impact of the
COVID-19 (coronavirus) pandemic on the global economy. As a
result of these actions and a government-mandated shutdown in
Pennsylvania, more than 500 U.S. employees will be laid off and
nearly 500 employees in Europe have been asked to stay home.
“The decision to ramp-down production at these facilities was
not made lightly,” said Sara A. Greenstein, Lydall’s President and
Chief Executive Officer. “It was driven by a sharp and immediate
decrease in customer demand from the automotive industry and was
necessary for the sustainability of our business.”
Lydall is offering support and resources to the employees
affected by these actions, including guidance on receiving
unemployment or other social benefits.
“Although we are dealing with an unprecedented event in terms of
size, scope and scale, we are cautiously optimistic that this is a
short-term crisis from which we will recover,” Ms. Greenstein
added. “While we are quickly responding to the change in
demand of our automotive customers, other parts of our business
remain stable. Our China operations for all three business
segments are seeing an increase in orders and a majority of our
employees are back at work.
“To ensure adequate liquidity, we have contingency plans in
place, are focused on minimizing operational expenses, strong
working capital management and have drawn $20 million on our
existing credit facility. We are confident that by making
these tough and necessary decisions early on we are better
positioned to navigate further uncertainties and business
disruptions caused by COVID-19."
Cautionary Note Concerning Forward-Looking Statements
This press release contains “forward-looking statements” within
the Private Securities Litigation Reform Act of 1995. Any
statements contained in this press release that are not statements
of historical fact, including statements about the expected impact
of the coronavirus on the Company's businesses may be deemed to be
forward-looking statements. All such forward-looking
statements are intended to provide management’s current
expectations for the future operating and financial performance of
the Company based on current expectations and assumptions relating
to the Company’s business, the economy and other future
conditions. Investors, therefore, are cautioned
against relying on any of these forward-looking statements.
They are neither statements of historical fact nor guarantees or
assurances of future performance.
These forward-looking statements speak only as of the date of
this press release, and Lydall does not assume any obligation to
update or revise any forward-looking statement made in this press
release or that may from time to time be made by or on behalf of
the Company.
Lydall, Inc. is a New York Stock Exchange listed company,
headquartered in Manchester, Connecticut with global manufacturing
operations producing specialty engineered products for the
thermal/acoustical and filtration/separation markets. For more
information, visit http://www.lydall.com. Lydall® is a
registered trademark of Lydall, Inc. in the U.S. and other
countries.
For further information contact:
Brendan Moynihan
Vice President, Financial Planning and Investor Relations
Telephone 860-646-1233
Facsimile 860-646-8847
www.lydall.com
info@lydall.com
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