Lydall, Inc. (NYSE:LDL) Q1 2020 Earnings Conference Call - Final Transcript

May 12, 2020 • 10:00 am ET

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Lydall, Inc. (NYSE:LDL) Q1 2020 Earnings Conference Call - Final Transcript

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Q & A
Operator
Operator

[Operator instructions] First question comes from Chris Moore, CJS. Please go ahead.

Analyst
Chris Moore

Hey, good morning guys. Yeah. Maybe the first question would be for Sara. So, obviously, ramp-down production in all three businesses that serve the auto end markets. Just trying to get a sense as to whether they -- kind of whether they would be ramped up at different times? And then kind of looking out into, say, the first half of 2021, which one of those will look the most different in terms of size, employees, cost structure, things of that nature? Trying to get a sense of how this likely will evolve.

Executive
Sara Greenstein

Sure. Let me kind of take that piece by piece. So, first of all, we ramped down quickly in response to the automotive end markets ceasing operations. And we did that on a country-by-country basis, directly related to our demand signal in each of those countries. As you well know, the automotive end market came down very quickly in Europe and the US in March. And our sites that serve those customers came down very quickly. And I think in our prepared remarks, we said, it was about 1,000 employees that we furloughed in very short order in direct response to the automotive end market ceasing operations across Europe and the US Now when you think about ramping up, I'm sure you hear the news as we do. But there is a slow ramp-up beginning in Europe.

Operator
Operator

[Operator instructions] First question comes from Chris Moore, CJS. Please go ahead.

Analyst
Chris Moore

Hey, good morning guys. Yeah. Maybe the first question would be for Sara. So, obviously, ramp-down production in all three businesses that serve the auto end markets. Just trying to get a sense as to whether they -- kind of whether they would be ramped up at different times? And then kind of looking out into, say, the first half of 2021, which one of those will look the most different in terms of size, employees, cost structure, things of that nature? Trying to get a sense of how this likely will evolve.

Executive
Sara Greenstein

Sure. Let me kind of take that piece by piece. So, first of all, we ramped down quickly in response to the automotive end markets ceasing operations. And we did that on a country-by-country basis, directly related to our demand signal in each of those countries. As you well know, the automotive end market came down very quickly in Europe and the US in March. And our sites that serve those customers came down very quickly. And I think in our prepared remarks, we said, it was about 1,000 employees that we furloughed in very short order in direct response to the automotive end market ceasing operations across Europe and the US Now when you think about ramping up, I'm sure you hear the news as we do. But there is a slow ramp-up beginning in Europe.

Analyst
Chris Moore

And as a result, we bring our workforce back to match the demand that we have from