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Jun 30, 2020
Mativ Q2 2020 Earnings Report
SWM's second quarter results reflected EP segment profit stability and AMS portfolio resilience amidst COVID-19 challenges.
Key Takeaways
SWM reported a 6% decrease in total sales to $254.2 million but demonstrated portfolio resilience with stable Engineered Papers segment profits and Advanced Materials & Structures segment performance despite COVID-19 impacts. Adjusted EPS was $0.90, reflecting solid execution and overall resilience.
Second quarter results reflected EP segment profit stability and AMS portfolio resilience in the face of COVID-19
Total sales were $254.2 million, down 6%
GAAP operating profit was $34.4 million, or 13.5% of sales, down 22%
Adjusted EPS was $0.90, down 15%
Forward Guidance
SWM remains quite profitable, generating high free cash flow and maintaining a strong balance sheet.
Positive Outlook
- SWM is successfully navigating the global economic challenges and health concerns related to COVID-19.
- Employee base performed exceptionally well, protecting the health of their colleagues while continuing to provide quality products and services to their customers.
- All sites are now open and fully operational.
- SWM remains quite profitable, generating high free cash flow and maintaining a strong balance sheet.
- Still pushing forward on long-term strategic initiatives across the business, ranging from commercial synergy projects related to Tekra, new product development in both AMS and EP, and company-wide cost improvement efforts.
Challenges Ahead
- Organic sales declined 15%.
- GAAP operating profit was $34.4 million, or 13.5% of sales, down 22%.
- Adjusted operating profit was $43.2 million, or 17.0% of sales, down 15%.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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