NEW YORK, Oct 28, 2010 - Minerals Technologies Inc. today reported third quarter diluted earnings per common share of $0.90 compared with $0.47 per share in the same period of 2009. Net income for the quarter was $16.7 million compared to the $8.9 million in the prior year.
"Our financial results for the third quarter were strong, remaining near pre-recession levels of profitability, and were in line with our expectations," said Joseph C. Muscari, chairman and chief executive officer. "In addition, our global growth strategy for Paper PCC is gaining momentum. During the quarter, we announced an agreement to build a new satellite PCC plant in India and the expansion of another satellite plant in Thailand. More recently we announced the launch of our Fulfill(TM) technology platform and a commercialization agreement with a leading Asian papermaker for one of our new higher-filler technology products to produce higher quality paper at a lower cost."
THIRD QUARTER EARNINGS
Year-Over-Year Comparisons
Third quarter worldwide sales increased 7 percent to $249.8 million from the $234.3 million recorded in the same period in 2009 as a result of volume increases in all businesses. Foreign exchange had an unfavorable impact on sales of approximately $3.7 million or 2 percentage points. The company reported income from operations of $25.0 million for the quarter compared to $14.2 million, excluding special items, recorded in the same period of 2009. Operating income, as reported, was $12.8 million in the prior year.
Refractories Segment
Refractories segment sales in the third quarter of 2010 increased 17 percent to $83.7 million from $71.8 million recorded in the same period in 2009. Refractory volumes increased 17 percent from the third quarter over the prior year as a result of the improvement in the steel industry over the past year. Metallurgical products sales increased 22 percent to $18.3 million from the $15.0 million recorded in the prior year. The Refractory segment, which produces products used primarily in the steel market, recorded operating income, excluding special items, of $6.3 million compared to an operating loss of $1.1 million in the prior year.
Comparisons to Second Quarter 2010
The company's worldwide sales in the third quarter declined 2 percent to $249.8 million from $255.8 million in the second quarter. Income from operations was $25.0 million, a 9-percent decline from the $27.5 million in the second quarter.
Refractories Segment
In the company's Refractories segment, sales for the third quarter were $83.7 million, down 4 percent from the $87.6 million recorded in the prior quarter.
Sales of refractory products and systems declined 4 percent in the third quarter to $65.4 million from $68.3 million in the second quarter. This decline occurred as a result of a softening in the North American steel industry and some discrete shutdowns in steel mills where the company provides its services. Sales in the metallurgical product line decreased 5 percent sequentially to $18.3 million from $19.3 million in the previous quarter due to reduced demand for flat-rolled products. Operating income declined 34 percent to $6.3 million from $9.6 million in the prior quarter, excluding special items. This decline was due to lower volumes and higher raw material costs.
Nine Months Results
The company recorded net income of $51.0 million for the first nine months compared to a loss of $27.9 million for the same period in the prior year. Earnings per share for the nine months was $2.72 compared to a loss per share of $1.49 for the first nine months of 2009. Excluding special items, earnings per share were $2.73 as compared with $0.93 per share in the prior year.
Minerals Technologies' worldwide sales for the first nine months of 2010 increased 17 percent to $759.0 million from $651.1 million in the same period last year. Foreign exchange had a favorable impact on sales of $8.4 million or 1 percentage point of growth. Operating income, excluding special items, for the nine months increased 178 percent to $76.4 million compared to $27.5 million recorded in the prior year. The company reported an operating loss in the prior year of $21.5 million due to impairment and restructuring charges.
Worldwide sales for the Refractories segment for the nine months increased 31 percent to $252.6 million from $193.0 million recorded in the same period in 2009. The Refractory segment recorded operating income, excluding special items, of $21.8 million compared to an operating loss of $10.2 million in the prior year.
"Our performance for the first three quarters of 2010 reflects the changes we made in 2009 to reduce costs and improve productivity, as well as improvement in the overall economy. As a result we have been able to triple our operating income in the first nine months of 2010. We are now a much stronger operating company." said Mr. Muscari. "Looking ahead, there remains some uncertainty in the economy, but our balance sheet remains strong and our global competitiveness in our core Paper PCC business is expanding. We're looking forward to creating additional opportunities for future growth."
"Our financial results for the third quarter were strong, remaining near pre-recession levels of profitability, and were in line with our expectations," said Joseph C. Muscari, chairman and chief executive officer. "In addition, our global growth strategy for Paper PCC is gaining momentum. During the quarter, we announced an agreement to build a new satellite PCC plant in India and the expansion of another satellite plant in Thailand. More recently we announced the launch of our Fulfill(TM) technology platform and a commercialization agreement with a leading Asian papermaker for one of our new higher-filler technology products to produce higher quality paper at a lower cost."
THIRD QUARTER EARNINGS
Year-Over-Year Comparisons
Third quarter worldwide sales increased 7 percent to $249.8 million from the $234.3 million recorded in the same period in 2009 as a result of volume increases in all businesses. Foreign exchange had an unfavorable impact on sales of approximately $3.7 million or 2 percentage points. The company reported income from operations of $25.0 million for the quarter compared to $14.2 million, excluding special items, recorded in the same period of 2009. Operating income, as reported, was $12.8 million in the prior year.
Refractories Segment
Refractories segment sales in the third quarter of 2010 increased 17 percent to $83.7 million from $71.8 million recorded in the same period in 2009. Refractory volumes increased 17 percent from the third quarter over the prior year as a result of the improvement in the steel industry over the past year. Metallurgical products sales increased 22 percent to $18.3 million from the $15.0 million recorded in the prior year. The Refractory segment, which produces products used primarily in the steel market, recorded operating income, excluding special items, of $6.3 million compared to an operating loss of $1.1 million in the prior year.
Comparisons to Second Quarter 2010
The company's worldwide sales in the third quarter declined 2 percent to $249.8 million from $255.8 million in the second quarter. Income from operations was $25.0 million, a 9-percent decline from the $27.5 million in the second quarter.
Refractories Segment
In the company's Refractories segment, sales for the third quarter were $83.7 million, down 4 percent from the $87.6 million recorded in the prior quarter.
Sales of refractory products and systems declined 4 percent in the third quarter to $65.4 million from $68.3 million in the second quarter. This decline occurred as a result of a softening in the North American steel industry and some discrete shutdowns in steel mills where the company provides its services. Sales in the metallurgical product line decreased 5 percent sequentially to $18.3 million from $19.3 million in the previous quarter due to reduced demand for flat-rolled products. Operating income declined 34 percent to $6.3 million from $9.6 million in the prior quarter, excluding special items. This decline was due to lower volumes and higher raw material costs.
Nine Months Results
The company recorded net income of $51.0 million for the first nine months compared to a loss of $27.9 million for the same period in the prior year. Earnings per share for the nine months was $2.72 compared to a loss per share of $1.49 for the first nine months of 2009. Excluding special items, earnings per share were $2.73 as compared with $0.93 per share in the prior year.
Minerals Technologies' worldwide sales for the first nine months of 2010 increased 17 percent to $759.0 million from $651.1 million in the same period last year. Foreign exchange had a favorable impact on sales of $8.4 million or 1 percentage point of growth. Operating income, excluding special items, for the nine months increased 178 percent to $76.4 million compared to $27.5 million recorded in the prior year. The company reported an operating loss in the prior year of $21.5 million due to impairment and restructuring charges.
Worldwide sales for the Refractories segment for the nine months increased 31 percent to $252.6 million from $193.0 million recorded in the same period in 2009. The Refractory segment recorded operating income, excluding special items, of $21.8 million compared to an operating loss of $10.2 million in the prior year.
"Our performance for the first three quarters of 2010 reflects the changes we made in 2009 to reduce costs and improve productivity, as well as improvement in the overall economy. As a result we have been able to triple our operating income in the first nine months of 2010. We are now a much stronger operating company." said Mr. Muscari. "Looking ahead, there remains some uncertainty in the economy, but our balance sheet remains strong and our global competitiveness in our core Paper PCC business is expanding. We're looking forward to creating additional opportunities for future growth."
