Business
UFP Technologies Announces Q1 2020 Results
NEWBURYPORT, Mass., May 05, 2020 (GLOBE NEWSWIRE) -- UFP Technologies, Inc. (Nasdaq: UFPT), an innovative designer and custom manufacturer of components,
About this update from Ufp Technologies, Inc.
[{"type":"text","content":"NEWBURYPORT, Mass., May 05, 2020 (GLOBE NEWSWIRE) -- UFP Technologies, Inc. (Nasdaq: UFPT), an innovative designer and custom manufacturer of components, subassemblies, products, and packaging primarily for the medical market, today reported net income of $3.9 million or $0.52 per diluted common share outstanding for its first quarter ended March 31, 2020, compared to net income of $3.7 million or $0.50 per diluted common share outstanding for the same quarter in 2019. Sales for the first quarter were $48.3 million compared to 2019 first quarter sales of $47.3 million. \n \"I am pleased with our results, our response to the COVID-19 crisis, and our positioning going forward,\" said R. Jeffrey Bailly, Chairman & CEO. \"Q1 saw modest gains of 2% on our top line and 4% on our bottom line, as UFP responded to the unfolding pandemic. Medical sales grew an impressive 16%, but these results were largely offset by significant declines in our non-medical markets.” \"In the medical space, orders related to elective surgeries have slowed, while orders in infection prevention and patient surfaces, such as medical mattresses, have increased substantially,” Bailly said. “We have also begun producing medical face shields and associated components in four of our facilities. Non-medical markets such as automotive and consumer have slowed dramatically due to customers closing their non-essential plants. All UFP factories are deemed essential businesses and are up and running. Attendance has slipped somewhat due to COVID-19, but we have kept up with customer demand by utilizing overtime and shifting direct labor employees to our busiest departments. Steps we are taking in the factories to safeguard our employees include significantly enhanced cleaning, temperature monitoring, and social distancing.” \"It is difficult to predict the net impact of the COVID-19 crisis, but we anticipate Q2 and likely Q3 will be adversely affected,\" Bailly added. “Our supply chain, which is primarily U.S.-based, has been meeting our needs. However, to mitigate risk, we have increased our raw materials and cash reserves. In addition, we have sharpened our focus on potential acquisitions. As in the last major economic downturn, when we were able to complete four acquisitions in fifteen months, we have a solid balance sheet and are ready to respond quickly to strategic ...