Schweitzer-Mauduit International (SWM, Financial), a product engineering and manufacturing company, fell during theyear as price increases did not keep up with inflation. The company’s margins suffered, but the company expects a normalization by mid-2022. The company made a significant acquisition during the second quarter of 2021 (Scapa Group) at what we think was a bargain price.10 However, scarcity problems and inflation negatively impacted Scapa’s initial performance. The company has aggressively raised prices and worked through many of its supply issues. The company continues to see strong demand and has projected strong financial performance for 2022.
From Steven Scruggs (Trades, Portfolio)' FPA Queens Road Small Cap Value Fund fist-quarter 2022 commentary.
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