Lydall, Inc. announced unaudited consolidated earnings results for the first quarter ended March 31, 2017. For the quarter, the company reported net sales were $165,487,000 against net sales of $129,700,000 a year ago. Operating income was $14,955,000 against operating income of $13,679,000 a year ago. Income before income taxes was $14,209,000 against income before income taxes of $13,702,000 a year ago. Net income was $11,669,000 against net income of $9,169,000 a year ago. Diluted per share was $0.68 against diluted per share of $0.54 a year ago. Net cash provided by operating activities was $12,358,000 against net cash provided by operating activities of $12,783,000 a year ago. Capital expenditures were $9,560,000 against capital expenditures of $9,616,000 a year ago. EBITDA was $21,286,000 against EBITDA of $18,178,000 a year ago. EBITDA, adjusted was $22,915,000 against EBITDA, adjusted of $18,739,000 a year ago. Adjusted earnings per share increased 32.1% to $0.74, compared to $0.56 per share in the first quarter of 2016. An increase in cash generated from improved net income was offset primarily by increases in tooling inventory in preparation of new automotive platform launches.

For the full year 2017, the company expects total capital expenditures to be approximately $35 million as it continues to invest at a higher rate than usual in support of attractive growth and productivity initiatives. The company now anticipates that its full year effective rate will be in the high 20%.

An asset impairment charge of $0.8 million in the Performance Materials segment negatively impacted operating margin by 50 basis points.