AMCOL International Corp. Reports First Quarter Results

Apr. 27, 2010 - AMCOL International Corporation today reported 2010 first quarter net income attributable to AMCOL shareholders of $0.20 per diluted share as compared to $0.14 per diluted share in the prior year's period.
Net sales increased 6.4% to $175.0 million for the quarter ended March 31, 2010 from $164.4 million in the 2009 period. Foreign currency fluctuations had a favorable 3.8% impact on our sales results for the quarter. As compared to the prior year's first quarter, operating profit increased marginally and our losses from affiliates and joint ventures approximated the same amount. Our interest expense was less than the prior year's quarter as it benefited from overall lower average interest rates as well as the significant amount of debt reduction throughout 2009.
"Given the range of our business segments, the results of our first quarter are often unpredictable. However, we are pleased that our consolidated revenue increased by more than 6% when compared to Q1 2009," said Larry Washow, AMCOL President and Chief Executive Officer. "The quarter showed strengthening in our Minerals and Materials business, but our Environmental results were severely impacted by the unusually cold weather around the world. We did see sequential improvement in Oilfield Services, but margins have not yet returned to their historical levels."
Washow continued, "Our Minerals & Materials segment improved globally with a rebound in the US metalcasting market leading the way as the automotive and heavy equipment industry sales were up substantially over last year. Asia continues to build on the increased activity we saw in late 2009, and Europe is strengthening as well."
"Our Environmental segment results were disappointing as sales were down almost 14% from last year. The weather had a significant impact on our business as the long winter delayed several projects. Commercial construction is still very slow in most regions. This segment is seasonal so we will see the traditional strengthening in the next two quarters," Washow added.
"Oilfield Service activity did increase somewhat this quarter which helped improve the sequential sales and margins but we are still down from the same period last year. Greater oil prices are helping, but this is offset somewhat by continued low natural gas pricing. We do expect a positive impact from our international activity as we continue to focus on global expansion of this segment," Washow continued.
"While we are a long way from where we want to be, we are encouraged with the improving Minerals & Materials business as it was the first to show the impact of the economic slowdown and may be a leading indicator of the improving economic environment. The worst winter in many years slowed the start of the Environmental business but there are many projects that will ship in the months ahead. We will continue to focus on the balance sheet while we look for stronger growth in 2010," Washow concluded.