BIOMASS

• UK Association Promoting Greater Use of Biomass to Meet Carbon Goals

• Valmet to Deliver a Turnkey Biopower Plant to Produce Green Electricity and Heat for the City of Salzburg, Austria

• Biomass Flyash Can Be a Source of Rare Earths

COMPANY NEWS

• Babcock & Wilcox Enterprises Reports Strong Second Quarter with Significant Year-Over-Year Improvements in Revenue, Net Income, and Adjusted EBITDA

• Lydall Announces Significant Growth Across Focused Portfolio Drives Margin Expansion

• Parker Reports Fiscal 2021 Fourth Quarter and Full Year Results and Issues Guidance for Fiscal 2022

• ANDRITZ acquires parts of Air Quality Control System (AQCS) business from GE Steam Power

MARKETS

BECCS at All the World’s Coal Plants Would Bring CO2 Levels Down to 360 ppm

CO2 levels have risen from 360 ppm to over 400 ppm in just 20 years. The reduction can be just as swift.

With BECCS (BioEnergy Carbon Capture and Sequestration), converted coal plants would take CO2 out of the atmosphere as rapidly as they once added it. So in just 20-30  years the level could be reduced to 360 ppm.

Despite reduction in coal fired capacity in some countries coal will remain a major power plant fuel. The IEA 2021 forecast assumes global GDP growth of 5.2% this year. Coal consumption will rise 2.6% to 7,432 Mt  as a result of increased demand in China, India and Southeast Asia. The 2021 outlook includes strong GDP growth of 8.2% in China that will drive additional coal use, particularly in the electricity sector. Likewise, the rebound of electricity demand in Europe in 2021 will put a temporary brake on the structural decline of coal. Higher natural gas prices for power generation in the United States could make annual coal demand increase for the first time since 2013.

In 2003 world coal capacity was only 1.3 million MW.  But this increased to 2.1 million MW in 2020.  It is projected that coal fired capacity will reach 2.2 million MW in 2050 given the present plans. Retirements in Europe and the U.S will be offset by increases in Asia and Africa.

The cost of conversion of an existing coal fired plant such as Drax to BECSS is far less than building a green field plant. Therefore existing coal plants should be viewed as a resource to be preserved should the maximum amount of greenhouse gas reduction be needed.

If all coal fired plants were converted to bioenergy the coal fired power plant contribution would drop to 0.  If all these plants installed BECCS the contribution would be a negative 7 billion tons of CO2 per year.  This is an amount sufficient to insure reduction in ambient CO2 levels given modest reduction from other sources.

CO2 Contribution from Coal Fired Plants with Bioenergy With/Without Sequestration

The International Energy Association predicts that bioenergy use will be greater than oil and contribute one third of the world’s total energy. Much of the energy use in developing countries is biomass which is used for cooking and heating fuel.  IEA also says that the technical potential for biomass is as great as the present coal use (388 EJ)

Drax is leading the way.  It has converted a 4000 MW coal fired power plant to burn biomass. It owns wood pelletizing operations in the U.S and is moving forward with carbon capture and sequestration.

It is also working on related technologies such as manufacture of food pellets and use of  turbines using gasified biomass. A number of other projects are moving forward including industrial projects in Europe where there is a readily available sequestration resource. In some cases the beneficial use of CO2 for EOR is practical due to the location.

The opportunity is particularly attractive for those Asian countries who will build coal fired plants in the next 10 years. If the potential for eventual conversion to BECCS is considered during the design, the conversion can be made more economic. For example fluid bed boilers are more fuel flexible than coal fired boilers.

 BECCS will create large markets for many types of air, water and energy products.

 McIlvaine is forecasting air, water and energy products for conversion of coal plants to BECCS along  with geothermal, combined cycle gas plants, hydropower, hydrogen, and particulate heat exchanger storage. These are all major applications for these products.

McIlvaine is also evaluating wind, solar, and battery storage which in general would reduce the total market for air and water products.

Weekly coverage of developments is provided in http://home.mcilvainecompany.com/index.php/databases/42ei-utility-tracking-system

Customized forecasts for any flow or treat product is available. For information contact Bob McIlvaine  rmcilvaine@mcilvainecompany.com  Cell 847 226 2391

 Soaring Market for High Efficiency Air Filters

The public views about air quality are changing and are creating a large long term market for high efficiency filters in HVAC systems. Celebrities are telling us in TV advertisements that you should enter buildings only if they have a Well Health Safety Seal.

Wildfires in Siberia and the Western U.S. are creating unhealthy air just at the time the medical profession is advising the intake of more outside air.

The Delta variant is wreaking havoc around the world. The latest thinking is that vaccinations alone are not going to be adequate. Better indoor air quality along with other measures will be needed.

Upgrades to HVAC systems will typically result in MERV 8 filters being replaced by MERV 13 or even MERV 16.  HEPA filters will be utilized in spaces where large numbers of people will be passing through or congregating.

The use of HEPA room air purifiers has grown rapidly and the trend is likely to continue.

The market for high efficiency filters is very strong in countries where there are large numbers of unvaccinated people. In Asia and Africa it will be years before there is any chance of herd immunity even for a virus less virulent than the Delta variant.

McIlvaine is continually revising air filter and media forecasts in four different efficiency ranges for each country and also segmented by commercial, residential, education, and various  industries. The report also includes forecasts for gas turbine intake filters which use the same media.

The excel based report has more than 20,000 forecasts and is available for $4,000. 

Bob McIlvaine can answer your questions and provide details.  His email is rmcilvaine@mcilvainecompany.com.  You can also reach him at 847 226 2391.

COAL FIRED BOILERS

Pollution From Western Balkan Coal Plants Dwarfs European Union Emissions

 A review by the Center for Research on Energy and Clean Air (CREA) of sulfur dioxide emissions from 18 coal-fired power plants in the Western Balkans, found they emit twice as much as all 221 coal-fired power plants in the European Union (EU). The plants are in Bosnia and Herzegovina, North Macedonia, Montenegro, Serbia, and Kosovo. Under the terms of the 2005 Energy Community Treaty, 17 of the 18 plants are required to meet the pollution control standards of the EU’s large combustion plant directive to cut sulfur dioxide, and nitrogen oxides and dust pollution. CREA found that three years after the January 2018 deadline, only two plants have installed desulfurization equipment and in neither case is it in commercial operation. The other plants either have no plans to close or to fit pollution control equipment despite the threat to public health.

PULP AND PAPER

A Leading European Paper Manufacturer Opts For Scheuch Technology

Paper manufacturing company Papierfabrik Palm GmbH & Co. KG believes so strongly in Scheuch’s tried-and-tested technology that it has opted for it twice over. The company’s site in Wörth am Rhein started using a Scheuch fabric filter with additive metering to clean the flue gas from a power station back in 2008. As part of a project to modernize and extend the site, the decision was taken to construct another combined heat and power station with a view to utilizing the energy within the waste material left over from production. To assist with this endeavor, Scheuch was once again brought in. The Austrian air pollution control specialist was tasked with installing a fabric filter featuring high-efficiency sorption and a downstream SCR system to ensure compliance with even the strictest of emissions regulations.

All five of the pa­per man­u­fac­tur­ing sites op­er­ated by Pa­pier­fab­rik Palm GmbH & Co. KG in Eu­rope are equipped with flex­i­ble, state-of-the-art power sta­tions boast­ing en­ergy ef­fi­ciency lev­els of more than 90 %. Keep­ing its pa­per man­u­fac­tur­ing sus­tain­able is clearly high on the com­pa­ny’s agenda, and it was this that led it to in­vest around 200 mil­lion eu­ros in mod­ern­iz­ing the power sta­tions at its three Ger­man sites.

Scheuch has connected a whole host of dif­fer­ent tech­nolo­gies in a so­phis­ti­cated way so that dust, acidic flue gas com­po­nents (HCl, HF, SO2), diox­ins/​fu­rans, heavy met­als and now NOx can all be safely sep­a­rated to achieve the low­est pos­si­ble emis­sion lev­els. In this way, mod­ern flue gas clean­ing tech­nolo­gies are play­ing a key role in cre­at­ing a cleaner en­vi­ron­ment.

Stricter re­quire­ments con­cern­ing the NOx limit value and NH3 slip are mak­ing it nec­es­sary to im­ple­ment ad­di­tional emis­sion re­duc­tion mea­sures. For this rea­son, the flue gas clean­ing sys­tem on mod­ern power sta­tions is be­ing sup­ple­mented by tail-end SCR (se­lec­tive cat­alytic re­duc­tion) to en­sure that the lower limit val­ues are met. This in­volves us­ing a cat­a­lyst and adding am­mo­nia (NH3) to con­vert the ni­tro­gen ox­ides gen­er­ated by the com­bus­tion process into harm­less ni­tro­gen (N2) and wa­ter (H2O). The SCR tech­nol­ogy makes it pos­si­ble to com­ply eas­ily with even the low­est NOx val­ues of ≤ 100 mg/​Nm³ while also keep­ing the NH3 slip low.

This com­bined use of a wide va­ri­ety of processes from Scheuch en­sures the low­est emis­sions and an en­ergy-ef­fi­cient in­crease in ef­fi­ciency thanks to the use of down­stream heat re­cov­ery.

Valmet to Supply a Multifuel Boiler to Kipaş Kağit Sanayi Isletmeleri A.Ş.’S Paper Mill In Turkey

Valmet will supply a multifuel power boiler and auxiliary process equipment to Kipaş Kağit Sanayi Isletmeleri A.Ş.’s paper mill in Kahramanmaraş, Turkey. The new boiler will improve the reliability of the paper mill’s steam and electricity supply. Additionally, its steam production capacity will be sufficient for the mill’s future paper machine PM 4.

The order was included in Valmet’s orders received of the second quarter 2021. Typically, the value of this kind of order is in the range of EUR 25–35 million. The boiler plant startup is scheduled for the third quarter of 2023.

“This is a repeat order from Kipaş Holding, as we have supplied an identical plant earlier to their greenfield paper mill in Söke, Turkey. We value the customer’s trust in us highly,” says Kai Janhunen, Vice President, Energy Business Unit, Valmet.

Valmet’s delivery includes a Valmet CFB Boiler for co-firing paper and water treatment sludge, plastic rejects and coal. The boiler will utilize circulating fluidized bed (CFB) technology, and the boiler plant will have a steam production capacity of 260 tons per hour (114 bar, 542 °C). The delivery also includes a Valmet Electrostatic Precipitator, a Valmet Bag House Filter, a Valmet DNA Automation System and spare parts.

Kipaş Kağit Sanayi Isletmeleri A.Ş. started as a joint venture of Kipaş Holding in 2011 and produces high-quality containerboard paper from waste paper. Currently, Kipaş has two paper machines: PM 1 in Kahramanmaraş with an annual production capacity of 450,000 tons and PM 2 in Söke with a production capacity of 720,000 tons of coated grades.

WASTE-to-ENERGY

B&W Renewable Receives Limited Notice to Proceed for Engineering Portion of $24 Million Waste-to-Energy Project in Europe

Babcock & Wilcox (B&W) announced that its B&W Renewable segment has received a limited notice to proceed for a new-build waste-to-energy project in Europe as it finalizes terms for a $24 million contract with its customer. B&W Renewable anticipates a full notice to proceed later this year.

Under the limited notice to proceed, B&W Renewable has begun engineering on its best-in-class renewable energy technology — including a boiler, combustion equipment and DynaGrate® combustion grate — to process municipal waste to produce electricity while controlling environmental emissions and eliminating harmful landfill methane emissions.

“The market for clean, renewable energy in Europe is extremely strong, and we’re pleased to expand beyond our already large base of DynaGrate customers in the U.K. and Scandinavia with this new-build installation,” said B&W Chief Operating Officer Jimmy Morgan. “B&W Renewable’s waste-to-energy technologies allow our customers to turn municipal waste that would otherwise end up in a landfill into a clean, baseload power-producing asset, while reducing greenhouse gas and other emissions.”

 “By diverting municipal waste from landfills, we reduce the associated environmental impacts caused by burying trash – including water pollution, odors and emissions of the potent greenhouse gas methane, which is produced when biological waste decomposes,” Morgan said. “Waste-to-energy is also fully complementary to recycling programs, beneficially using waste that otherwise couldn’t be recycled.”

 B&W announced an expansion of its presence in Europe in September 2020, as it looks to capitalize on an estimated addressable market of more than $7 billion in the region over the next three years.

 BIOMASS

 UK Association Promoting Greater Use of Biomass to Meet Carbon Goals

The U.K. Association for Renewable Energy and Clean Technology submitted comments to the U.K. Department of Business, Energy and Industrial Strategy (BEIS) in early June urging the government to reassert its commitment to delivering a strong biomass sector by continuing to build on existing bioenergy heat, transport, and power sectors.

The BEIS on April 20 opened a public consultation seeking evidence on how sustainable biomass should be sourced and used to support the country’s net-zero target. The agency said comments filed during the consultation period will inform the development of the U.K.’s upcoming biomass strategy.

The REA on June 17 issued a statement outlining the comments it submitted to the BEIS earlier this month. In its response, the REA welcomed the government’s recognition that biomass has a critical role to play in getting to net zero but said that it is essential that policy gaps facing the sector are addressed.

The REA’s response also stresses the significant potential for the growth of domestic biomass. Providing demand for wood products would drive tree planting and bring more woodlands into sustainable management, the REA said, noting that market dynamic must be recognized by the government in order to realize future tree planting and bioenergy targets.

The REA also said that the delivery of successful bioenergy sectors will deliver further innovation, including bioenergy carbon capture and storage (BECSS), which will deliver negative emissions needed to meet the U.K.’s net zero targets.

The comments identify several policy gaps that the REA said the government must address. Those gaps include the need to develop a replacement for the non-domestic renewable heat incentive; the need to increase the targets of the Renewable Transport Fuel Obligation in order to drive the development of fuels needed to decarbonize heavy goods vehicles, airplanes and shipping; and the need to provide post-2027 sector confidence for the continued use of existing bioenergy plants, which will allow those facilities to invest in critical BECSS technology once the Renewables Obligation ends.

“We welcome the government’s commitment to recognizing the critical role biomass has to play in getting to net zero and the need to for an up-to-date strategy to see this delivered,” said Mark Sommerfeld, head of power and flexibility at the REA.

“Biomass already plays a fundamental role in decarbonizing the U.K., providing the largest contribution to renewable energy across power, heat and transport overall,” he added.

“Therefore, future biomass policy must build on the success of existing industries, providing immediate carbon savings while the U.K. moves forward with the energy transition. It is essential that policy gaps facing the sector today are addressed to further strengthen existing biomass supply chains, expertise and the near 50,000 jobs already associated with the sector.

“Now is the time for Government to re-assert its commitment to delivery of a strong biomass sector, already operating within a stringent sustainability governance regime, ensuring bioenergy remains an example of strong U.K. leadership around the world,” Sommerfeld continued. “We look forward to working with the government to continue to support this internationally significant sector through further development of the Biomass Strategy, so that it is able to fulfil its role in helping the U.K. meet its net zero ambitions.”

 Valmet to Deliver a Turnkey Biopower Plant to Produce Green Electricity and Heat for the City of Salzburg, Austria

 Valmet will deliver a complete turnkey BioPower 5 power plant to produce green electricity and heat for the city of Salzburg, Austria. The order was placed by Salzburg AG, a leading Austrian energy and technology company.

The order is included in Valmet’s orders received in the third quarter 2021. The value of the order is not disclosed. The plant will be commissioned and started up in August 2023.

“We are constructing the Siezenheim II plant in Salzburg to increase the share of CO2-neutral district heat production to 40 percent. With the plant, it will be possible to provide 8,300 additional homes with bio district heat and 7,000 additional homes with ecologically produced power in Salzburg in the future. We have found Valmet to be an ideal partner for building our power plant,” says Siegfried Müllegger, Head of Energy Technologies, Salzburg AG.

“This is the first modular BioPower plant that Valmet will deliver to Austria, so it is a great opening for us in decarbonizing the local energy sector. High fuel flexibility, innovative technology, and serviceability play key roles in this solution. The use of local renewable biomass fuels ensures reliable and sustainable energy supply and creates jobs locally,” says Markus Bolhàr-Nordenkampf, Director, Energy Sales and Service Operations, Central Europe North, EMEA, Valmet.

Valmet will be responsible for the engineering, procurement, and construction (EPC) of the modularized BioPower 5 power plant. The scope of supply includes fuel handling, a boiler, a turbine, a flue gas cleaning system, and the Valmet DNA automation system. The plant will have a maximum electrical output of about 4 megawatts (MW) and a maximum heat output of 17 MW.

Valmet’s modularized BioPower power plant is based on proven combustion technology combined with factory manufactured and tested modules. Manufacturing the modules in the factory enables faster project implementation, shorter site time and completion with better quality and lower implementation risks. 

Biomass Flyash Can Be a Source of Rare Earths

 Researchers at the Institute of Mineralogy in Bulgaria has found that while rare earths in coal ash are much more prevalent, some of the ones in biomass ash are water soluble and can be easily extracted. This means that BECCS can not only reduce CO2 but also recover a valuable product.

The contents and associations of 14 rare earth elements and Y (REY), as well as the phase-mineral and chemical composition of biomass ashes (BAs) from eight biomass varieties were studied. An elucidation of the REY contents in BAs was conducted and a comparison with coal ashes (CAs) was performed. The correlations and associations of REY with major and minor elements, and different mineral classes in BAs are given. It was found that REY commonly have about one order of magnitude lower bulk concentrations in BA than those in CA. The distribution of REY in BAs is strongly dependent on the plant species and their source, and the different inorganic ash types. The individual REY show numerous strong and significant positive correlations; however, three major associations can be divided according to these correlations, namely: (1) light Ce, La, Nd, and Pr with Al2O3 + Fe2O3 + TiO2, Al, phosphates, and Ti; (2) medium Y with carbonates, oxides and hydroxides, and K; and (3) light Sm, medium Dy, Eu, Gd and Tb, and heavy Er, Ho, Lu, Tm and Yb with Si and silicates.

BA is a less prospective resource for a recovery of REY than CA according to their bulk concentrations; however, BAs are abundant in water-soluble components and their solutions may be used for REY recovery. The data also indicate that the low REY concentrations in BA would not have potential environmental and health concerns excluding their occurrence in mobile forms and in some radioactive silicate and phosphate minerals.

https://www.sciencedirect.com/science/article/abs/pii/S001623611931879

 COMPANY NEWS

Babcock & Wilcox Enterprises Reports Strong Second Quarter with Significant Year-Over-Year Improvements in Revenue, Net Income, and Adjusted EBITDA

Q2 2021 Highlights:

• Revenues of $202.9 million, a 49.8% improvement compared to second quarter 2020

• Net income of $3.1 million, compared to net loss of $18.1 million in second quarter 2020

• Earnings per share of $0.02, compared to loss per share of $0.39 in second quarter 2020

• Consolidated adjusted EBITDA of $15.1 million, compared to $1.7 million in second quarter 2020

• Bookings of $168 million, a 100% improvement compared to second quarter of 2020

• Launched ClimateBrightTM decarbonization technologies platform

Our results for the second quarter of 2021 demonstrate our steady progress towards achieving our adjusted EBITDA targets of $70-$80 million and $95-$105 million, in 2021 and 2022, respectively," said Kenneth Young, B&W's Chairman and Chief Executive Officer. "This momentum is driven by our ongoing growth strategies, including our clean energy initiatives and cost reduction actions, despite the continued adverse effects of COVID-19 across our segments."

"With the launch of our ClimateBrightTM platform in May, we are building an exciting pipeline of potential carbon capture and hydrogen combustion opportunities, as our customers seek solutions to address some of the world's most urgent climate objectives such as carbon dioxide and methane reductions," Young added. "We are pursuing an overall pipeline of more than $6 billion of identified project opportunities through 2024 and continue to make progress in converting our pipeline to bookings. We anticipate booking three to five renewable new-build opportunities in 2021, as we are seeing increasing demand for our technologies."

"Our new four-year senior financing agreements, which closed in June, were a significant accomplishment for the Company and demonstrate the confidence of our lenders and shareholders in our strategy," Young continued. "Combined with the reduction of our total secured debt by over $347 million in 2021, this financing has positioned us to grow across all segments as we invest in our ClimateBrightTM technologies platform and innovative technology agreements such as our recent exclusive long-term energy storage licensing option agreement with the U.S. Department of Energy."

"Our acquisition efforts are progressing, and multiple investment or acquisition opportunities are in advanced due diligence phases including three renewable or emerging technology opportunities that are in exclusive negotiations," Young added. "We remain dedicated to increasing shareholder value through both organic and inorganic growth while driving a worldwide transformation to a green environmental future."

Consolidated revenues in the second quarter of 2021 were $202.9 million, a 49.8% improvement compared to the second quarter of 2020, primarily due to a higher level of construction activity in the quarter. Revenues in all segments were adversely impacted by COVID-19 as customers delayed projects and travel restrictions limited the ability of the Company's workforce to visit job sites. GAAP operating income in the second quarter of 2021 improved to $2.8 million, inclusive of restructuring and settlement costs and advisory fees of $6.9 million, compared to an operating loss of $7.7 million in the second quarter of 2020. The improvement was primarily due to the higher construction volume as described above, improved project execution and the benefits of cost savings and restructuring initiatives. Adjusted EBITDA was $15.1 million compared to $1.7 million in the second quarter of 2020. Bookings in the second quarter of 2021 were $168 million, with backlog of $500 million at June 30, 2021.

Babcock & Wilcox Renewable segment revenues were $38.3 million for the second quarter of 2021, compared to $43.5 million in the second quarter of 2020. The reduction in revenue is primarily driven by large project start delays due to the adverse global effects of COVID-19 in the second quarter of 2021 coupled with the completion of prior-year large service and licensing projects and loss contracts that have not been replaced. Adjusted EBITDA in the quarter improved to $3.4 million compared to negative $0.1 million in the second quarter of 2020, primarily due to the benefits of cost savings and restructuring initiatives, offset partially by the decrease in volume. Adjusted gross profit was $9.8 million in the second quarter of 2021, compared to $9.4 million in the prior-year period; gross profit margin improved to 25.6% in the second quarter of 2021, compared to 21.6% in the second quarter of 2020 as a result of the benefits of cost savings initiatives.

Babcock & Wilcox Environmental segment revenues were $28.4 million in the second quarter of 2021, an increase of 12.7% compared to $25.2 million in the second quarter of 2020, primarily due to higher project activity. Adjusted EBITDA was $2.7 million, compared to negative $1.1 million in the same period last year, primarily driven by the higher volume and the benefits of cost savings and restructuring initiatives. Adjusted gross profit was $6.7 million in the second quarter of 2021, compared to $4.5 million in the prior-year period.

Babcock & Wilcox Thermal segment revenues were $136.3 million in the second quarter of 2021, an increase of 102.8% compared to $67.2 million in the prior-year period, primarily due to a higher level of activity on construction projects during the second quarter of 2021. Adjusted EBITDA in the second quarter of 2021 was $12.4 million, an increase of 55.0% compared to $8.0 million in last year's quarter, primarily due to the increase in volume as described above, partially offset by product mix; adjusted EBITDA margin was 9.1% in the quarter compared to 11.9% in the same period last year. Adjusted gross profit in the second quarter of 2021 improved to $29.3 million, compared to $20.0 million in the prior-year period, primarily due to the increase in volume.

Lydall Announces Significant Growth Across Focused Portfolio Drives Margin Expansion

Financial Highlights* - Q2 2021

• Net sales of $221.7 million, up 51.7% compared to prior year on strong demand across all three segments: up 47.4% organically

• Gross margin of 21.6%, up 220 bps; adjusted gross margin of 21.6%, up 210 bps

• Net income of $5.8 million or $0.32 per diluted share compared to operating loss per share of ($0.34) in Q2-2020; Adjusted earnings per diluted share of $0.50 compared to adjusted loss per share of ($0.27)

• EBITDA of $20.5 million or 9.3% of sales; Adjusted EBITDA up 116.4% to $24.7 million, or 11.1% of sales and up 40 bps sequentially from Q1-2021

• Total debt net of cash of $157.5 million, compared to $193.0 million at June 30, 2020; net debt leverage ratio of 1.9x

“Over the past year, Lydall has gone through an incredible transformation proving our flexibility and responsiveness in the face of the COVID pandemic. The Lydall team continued to deliver strong results in the second quarter, executing on our strategic roadmap and leveraging our focused portfolio to take advantage of a period of broader economic confidence.” said Sara A. Greenstein, President and Chief Executive Officer.

“Our Performance Materials (“PM”) business saw continued strong demand in specialty filtration led by higher sales of fine fiber meltblown media as well as sealing solutions which benefited from favorable trends in transportation, agricultural, and construction end markets,” commented Ms. Greenstein. PM sealing and advanced solutions products were up 49.5% and specialty filtration sales grew 14.9%. “The PM team commissioned additional fine fiber meltblown capacity at our Rochester, New Hampshire and St. Rivalain, France facilities, ahead of schedule and under budget."

In the Thermal Acoustical Solutions (“TAS”) segment, parts sales grew 119.5% from prior year which was heavily impacted by COVID related automotive facility shutdowns. Compared to the first quarter parts sales were down 17.7%. TAS volumes were impacted by semiconductor shortages affecting global automotive production, but the team rapidly adjusted to changing customer requirements to mitigate the profitability impacts.

Lydall’s Technical Nonwovens (“TNW”) segment saw sales growth of 39.4% from prior year as industrial end markets continued to recover from COVID-19 related slowdowns last year. Ms. Greenstein added, “The TNW business continues to build healthy backlog as industrial activity strengthens, delivering sequential sales growth of 17.5% while expanding adjusted EBITDA over 40%."

Q2 2021 Consolidated Results

Net sales of $221.7 million increased by $75.6 million, or 51.7% from the second quarter of 2020. Net of $9.8 million of favorable FX and $3.8 million related to divestitures, sales were up 47.4% organically compared to prior year. Sales were down $5.4 million sequentially, primarily on weaker sales in TAS partially offset by seasonal strength in TNW geosynthetics sales.

Operating income of $9.4 million improved by $11.2 million dollars from the second quarter 2020 operating loss of $1.7 million dollars, which included significant impacts from COVID-19 related shutdowns. Second quarter results include $3.7 million of strategic initiatives expense for merger-related costs.

Consolidated adjusted EBITDA of $24.7 million increased $13.3 million or 116.4% from the second quarter of 2020 with adjusted EBITDA margin of 11.1% expanding 330 basis points from prior year on favorable mix and volume in PM and TNW, and the absence of COVID related shutdowns in TAS. Sequentially, consolidated adjusted EBITDA margin was essentially flat from first quarter 2021 as margin from higher sales in TNW was offset by lower sales in TAS. Higher volumes of sealing and insulation products combined with favorable mix of specialty filtration products contributed to adjusted EBITDA margin of 25.9% in the PM segment, an expansion of 640 basis points from prior year. In the TNW business, strong volume growth in industrial filtration, particularly in China combined with stronger demand for geosynthetics yielded adjusted EBITDA of $12.0 million or a margin of 16.6%, up 310 basis points sequentially. The TAS business delivered adjusted EBITDA of $1.6 million, an improvement of $4.9 million compared to prior year which was heavily impacted by COVID related shutdowns.

Randall B. Gonzales, Chief Financial Officer, commented, “One year after the pandemic induced trough, Lydall continues to drive strong financial results, benefiting from cost reduction and efficiency opportunities to deliver profitability well in excess of top line growth as strong demand continues in our key end markets. The team has proven our ability to flex the cost structure through the entire business cycle to meet our customer’s diverse needs.”

Outlook

As previously announced, Unifrax, a leading global provider of high performance specialty materials focused on thermal management, specialty filtration, battery materials, emission control and fire protection applications, signed definitive agreements to acquire Lydall, Inc. Under the terms of these agreements, Lydall shareholders will receive $62.10 per share. The transaction, which has been approved by the boards of directors of both companies, is expected to close in the second half of 2021 subject to the receipt of required regulatory approvals, approvals of Lydall stockholders and other customary closing conditions.

Parker Reports Fiscal 2021 Fourth Quarter and Full Year Results and Issues Guidance for Fiscal 2022

• All-time records for sales, net income, EPS, operating cash flow and segment operating margins

• Fourth quarter sales increased 25% to $3.96 billion, organic sales increased 22%

• Fourth quarter segment operating margin was 20.0% as reported, or 22.2% adjusted

• Fourth quarter EPS increased 72% to $3.84 as reported, or $4.38 adjusted

• Full year net income was $1.75 billion; EPS were $13.35 as reported, or $15.04 adjusted

• Full year total segment operating margin was 18.4% as reported, or 21.1% adjusted

• Full year EBITDA margin was 21.6% as reported, or 21.3% adjusted

• Full year cash flow from operations was $2.58 billion, or 17.9% of sales

• Announced offer to acquire Meggitt to nearly double the size of the Aerospace Systems Segment

Parker Hannifin Corporation reported results for the fiscal 2021 fourth quarter and full year ended June 30, 2021. Fiscal 2021 fourth quarter sales were an all-time quarterly record at $3.96 billion, an increase of 25% compared with $3.16 billion in the fourth quarter of fiscal 2020. Net income was also a record at $504.8 million, an increase of 74% compared with $289.5 million in the prior year quarter. Fiscal 2021 fourth quarter earnings per share were also an all-time quarterly record at $3.84, an increase of 72% compared with $2.23 in the fourth quarter of fiscal 2020. Adjusted earnings per share increased 46% to $4.38 compared with adjusted earnings per share of $2.99 in the prior year quarter.

“We had an outstanding fourth quarter that capped off a record year for Parker,” said Chairman and Chief Executive Officer, Tom Williams. "Despite extraordinary challenges, we generated record financial performance in fiscal 2021, setting all-time highs for sales, net income, earnings per share, segment operating margins and cash flow from operations. Notably, our full year adjusted segment operating margins reached 21.1%, a 220 basis point improvement versus the prior year. Our continued execution of The Win Strategy™ is taking our performance to new heights. My thanks to all Parker team members for their contributions to a great year.” 

For the full year, fiscal 2021 sales were a record at $14.35 billion, an increase of 5% compared with $13.70 billion in fiscal 2020. Net income was a record at $1.75 billion, a 45% increase compared with $1.20 billion in the prior year period. Fiscal 2021 earnings per share increased 44% to a record $13.35 compared with $9.26 in fiscal 2020. Adjusted earnings per share increased 21% to $15.04 compared with $12.44 in fiscal 2020. Fiscal 2021 cash flow from operations was an all-time record at $2.58 billion, or 17.9% of sales, compared with $2.07 billion, or 15.1% of sales in the prior year period. 

Segment Results

• Diversified Industrial Segment:  North American fourth quarter sales increased 27% to $1.82 billion and operating income was $360.4 million compared with $219.8 million in the same period a year ago. International fourth quarter sales increased 37% to $1.51 billion and operating income was $306.5 million compared with $175.4 million in the same period a year ago.
•  Aerospace Systems Segment:  Fourth quarter sales increased 1% to $630.0 million and operating income was $123.1 million compared with $105.4 million in the same period a year ago.

   

Parker reported the following orders for the quarter ending June 30, 2021, compared with the same quarter a year ago:

• Orders increased 43% for total Parker

• Orders increased 56% in the Diversified Industrial North America businesses

• Orders increased 58% in the Diversified Industrial International businesses

• Orders decreased 7% in the Aerospace Systems Segment on a rolling 12-month average basis 

Offer to Acquire Meggitt PLC

• As previously announced on August 2, 2021, the company has reached an agreement on the terms of a recommended cash acquisition of the entire issued and to be issued ordinary share capital of Meggitt PLC, an international group and a world leader in aerospace, defense and energy. The acquisition is expected to close in approximately 12 months, subject to customary closing conditions, including regulatory clearances and approval by Meggitt’s shareholders.  

Outlook

•  For the fiscal year ending June 30, 2022, the company has issued guidance for earnings per share to the range of $14.08 to $14.88, or $16.20 to $17.00 on an adjusted basis. Guidance assumes organic sales growth of approximately 5% to 9% compared with the prior year. Fiscal 2022 guidance is adjusted on a pre-tax basis for expected business realignment expenses of approximately $35 million, LORD costs to achieve of approximately $7 million and acquisition-related intangible asset amortization of approximately $320 million. A reconciliation of forecasted earnings per share to adjusted forecasted earnings per share is included in the financial tables of this press release.

ANDRITZ acquires parts of Air Quality Control System (AQCS) business from GE Steam Power

ANDRITZ has signed an agreement with GE Steam Power to acquire parts of their Air Quality Control System (AQCS) technology, including the technology center in Växjö, Sweden. Closing of the transaction was reached on 1st of July 2021.

ANDRITZ takes over the product portfolio for industrial dedusting (electrostatic precipitators - ESP, fabric filters (FF) and wet ESP), dry/semi-dry flue gas treatment, and industrial scrubbing, including condensation scrubbers and low-temperature heat recovery solutions.

The acquisition also includes the AQCS main location in Växjö, Sweden, as well as employees involved in this business in Sweden and Finland. ANDRITZ acquires the respective intellectual property (IP), including patents, references, and trademarks, for global use with some exceptions. For parts, upgrade & service business in India, Bangladesh, Sri Lanka, the USA, and Canada as well as for FGD products in India, Bangladesh and Sri Lanka GE Steam Power will continue business as a licensee of ANDRITZ.

The dedusting portfolio acquired – especially the ESP and FF technologies – completes ANDRITZ’s air pollution control capabilities in the important pulp, metals, mining, and power markets.

ANDRITZ is now able to offer ESPs and Switch-Integrated Rectifier (SIR) technology from a single source, thus gaining access to service and maintenance business for an installed base of more than 2000 plants.

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