The LGL Group, Inc.
Climate Impact & Sustainability Data (1999, 2012, 2013)
Reporting Period: 1999
Environmental Metrics
Climate Goals & Targets
Environmental Challenges
- Environmental laws and regulations are constantly evolving and it is impossible to predict the effect that these laws and regulations will have on Spinnaker in the future.
- Labor dispute at Entoleter resulting in business disruption.
- East Asian financial crisis had a substantial adverse impact on LS, particularly on its large TV press business.
Mitigation Strategies
- Spinnaker has made and will continue to make capital expenditures to comply with environmental requirements.
- Spinnaker Coating restructured operations at its Maine unit in early 2000. Steps are being taken to reduce Spinnaker corporate overhead by transferring functions from the Dallas headquarters to the main Spinnaker Coatings office in Ohio.
- Lynch Systems added several new consumer glass press machines to its product offerings in an effort to be less dependent on orders for CRT glass press machines.
Supply Chain Management
Climate-Related Risks & Opportunities
Reporting Period: 2012
Environmental Metrics
Climate Goals & Targets
Environmental Challenges
- Overall weak macroeconomic climate
- Japanese natural disaster impacting supply chain
- US budget uncertainty and sequestration
- Uncertainty in the Eurozone
- Delayed microelectronic spending by clients
- Slow rollout of 4G and LTE impacting CapEx spending
Mitigation Strategies
- Reducing public company and administrative costs
- Investing in organic growth opportunities (new products)
- Exploring strategic opportunities (joint ventures, M&A)
- Maintaining strong relationships with major clients
- Focusing on cost structure improvements to maintain margins
Supply Chain Management
Climate-Related Risks & Opportunities
Sustainable Products & Innovation
- RF filtering products for software defined radio market
- New components for 4G and LTE market
- Modules and subsystems
Reporting Period: 2013
Environmental Metrics
Social Achievements
- Initiated a restructuring plan to realign customer support operations, targeting at least a 10% reduction in structural costs.
Climate Goals & Targets
Environmental Challenges
- Reduced demand and price compression in the Internet Communications Technology (ICT) market segment.
- Reduced demand from existing customers in the Aerospace and Defense (Aero/Defense) market segment.
- Competitive environment in the frequency control industry.
- Effects of U.S. budget sequestration and related government spending uncertainty.
- Non-compliance with the tangible net worth covenant under the Chase Loan Agreement.
Mitigation Strategies
- Implemented a restructuring plan to reduce structural costs.
- Acquired certain filter product line assets from Trilithic, Inc. to strengthen its RF & microwave portfolio.
- Strategic investments in demand creation and research and development.
- Managing working capital requirements to match reduced operating activities.
- Seeking additional capital to fund future growth and respond to market conditions.