Schweitzer-Mauduit International (SWM) reported sales of $279.3 million in the third quarter of 2020, up 9 percent over those in the 2019 third quarter. GAAP operating profit was $37 million, up 7 percent, and adjusted operating profit was $52.7 million, up 26 percent.
SWM’s engineered papers segment sales were $140.4 million, up 8 percent, driven by a 2 percent volume increase and favorable price/mix performance of 6 percent. Higher volumes benefited from strong growth across cigarette paper products as customers increased inventory levels to de-risk their supply chains in the event of future disruptions from Covid-19.
These volume gains were partially offset by the continued de-emphasizing of lower margin nontobacco paper products. Price/mix improved due to the strong sales of higher value cigarette papers, including low-ignition propensity papers coupled with the favorable mix impact of lower nontobacco volumes.
“We are pleased to report a strong quarter with sales and adjusted profit growth in both segments,” said SWM CEO Jeff Kramerin a statement. “While the pandemic continued to impact some of our end markets, the global SWM team continues to perform well under challenging circumstances. All of our sites were fully operational throughout the entire quarter, a testament to our people’s commitment to the safety protocols implemented across the company.”