The impact of the COVID-19 pandemic on the health of our communities and the global economy has been swift and unprecedented. I thank each of you for your dedication to our business and our customers despite the very difficult challenges we are all facing on a personal level. Because of you, our global team has continued to fulfill orders allowing other essential businesses to deliver vital and necessary supplies and products.
Regardless of your location, the truth is that we are all living through a stressful and traumatic period. It’s clear that this is a marathon, not a sprint, and we will be forever changed by this collective experience. I feel strongly that we will emerge with a different perspective in critical areas, including how we work, learn, care for the sick and sustain community. As we work through this crisis together and adjust to a new normal, I hope that we are all able to find balance, exhibit a large measure of flexibility, and empathy.
I recognize the burden this pandemic has placed on all of you, your families, and our business. As we concluded the first quarter and reviewed our performance, our business held its own. Some of our segments were stable or even strong (Small Pack Plastics, IBC, and International posted positive results). On the other hand, the pandemic adversely impacted our Steel Drum and North American Reconditioning segments. The spread of COVID-19 reduced our labor productivity and increased our freight costs, but we managed to mitigate these headwinds with favorable price/cost and strong Mauser Platform Optimization execution.
Just like you, we hear the experts predicting a long and deep recession and a slow recovery. Nobody really knows what the future holds, but it is unlikely we emerge from this pandemic without having to adjust our business to a new environment. At Mauser Packaging Solutions, we are people of action. Therefore, if the economy does enter into a recession, we will be prepared to take the necessary measures to protect the long-term viability of our business.
Mauser Packaging Solutions is a diversified business with the scale and operational strength to adapt in these challenging economic times. These qualities will help us push through this incredibly challenging chapter. And, they are the values that will propel us forward when we emerge on the other side of this crisis. I am proud to lead this great team and I thank you for your dedication to our business and our customers.
Please keep yourself and your families safe.
President & CEO
Mauser Packaging Solutions