NEW YORK, Apr. 29, 2010 -- Highlights:
--* Operating Income Up 38 Percent Sequentially/More than 200 Percent over Prior Year
--* Better than Expected Recovery in Refractories Segment
--* Stabilizing Business Conditions in End Markets
--* Productivity Improvements in All Business Units
--* Strong Balance Sheet
Minerals Technologies Inc. today reported net income of $15.4 million, or $0.82 per share, for the first quarter 2010, compared with $4.1 million, or $0.22 per share in the fourth quarter of 2009. Excluding special items, earnings per share were $0.85 compared with $0.62 per share in the fourth quarter of 2009.
"Our solid first quarter financial results indicate a significant improvement in earnings both sequentially, over the last three quarters, and year-over-year," said Joseph C. Muscari, chairman and chief executive officer. "This has returned the company to the levels of performance achieved prior to the recession that were, at that time, part of a transformation of Minerals Technologies to a higher level of performance. The actions we took in late 2008 and in 2009, combined with the progressive stabilizing of business conditions in our end markets, have generated a momentum for the company and put us back on course. Those actions, which include reducing our costs and focusing on productivity gains, enabled us to leverage sales and reduce break-even levels across all of our businesses. As volumes increase we expect to benefit accordingly."
Sequential Comparison to Fourth Quarter 2009
The company's worldwide sales in the first quarter were $253.5 million, a 1-percent sequential decline from the $256.2 million reported in the fourth quarter of 2009. Foreign exchange had an unfavorable impact on sales of approximately $4.0 million or 2 percentage points. Operating income, excluding special items, was $23.9 million, a 38-percent increase from the $17.3 million reported in the fourth quarter of 2009. As reported, income from operations was $23.0 million as compared with $4.5 million in the fourth quarter.
For the first quarter, worldwide sales in the company's Specialty Minerals segment, which consists of precipitated calcium carbonate (PCC) and Processed Minerals, were $172.1 million compared with $170.3 million in the fourth quarter of 2009, a 1-percent increase. Foreign exchange had an unfavorable impact on sequential sales growth for the quarter of approximately 1 percentage point. Income from operations, excluding special items, was $19.2 million, a 27-percent increase from the $15.1 million recorded in the fourth quarter of 2009.
Worldwide sales of PCC, which is used mainly in the manufacturing processes of the paper industry, were $145.1 million, a 1-percent decrease from the $146.3 million recorded in the fourth quarter of 2009. This decrease was associated primarily with foreign exchange. Overall, Paper PCC volumes increased 1 percent over the fourth quarter of 2009, and profitability improved primarily due to operational efficiencies and to the contractual recovery of raw material cost increases during the first quarter.
Worldwide sales of Processed Minerals products were $27.0 million in the first quarter of 2010, a 13-percent increase from the $24.0 million recorded in the fourth quarter of 2009. Processed Minerals products, which include ground calcium carbonate and talc, are used in the building materials, polymers, ceramics, paints and coatings, glass and other manufacturing industries. Processed Minerals experienced an 11-percent increase in volumes due to improved business conditions in the construction and automotive markets.
In the company's Refractories segment, sales in the first quarter of 2010 were $81.4 million, a 5-percent decrease from the $85.9 million recorded in the fourth quarter of 2009. This decline was primarily the result of the timing of equipment sales and an unfavorable foreign exchange impact of approximately 2 percentage points versus the fourth quarter of 2009. The Refractories segment, which provides products and services primarily to the worldwide steel industry, recorded operating income of $5.9 million, excluding special items, for the first quarter compared with $3.3 million in the fourth quarter of 2009, a 79-percent increase. The Refractories segment's improved profitability was primarily the result of improved business conditions in the North American steel sector resulting in volume increases of 7 percent in that region. In addition, lower raw materials costs and the successful execution of the restructuring program initiated in the second quarter of 2009 lowered break-even levels in this segment leading to a more flexible business model.
Year-Over-Year Comparisons
The company's first quarter net income of $15.4 million, or $0.82 per share, increased 270 percent from the $4.2 million, or $0.22 per share, recorded in the first quarter of 2009. Earnings per share, excluding special items, were $0.85 compared to $0.25 per share in the prior year, a 240-percent improvement. The increased earnings were primarily attributable to volume growth related to improvements in the company's end markets, which contrasts with the dramatic reduction in demand in the steel, paper, construction and automotive industries that existed in the first quarter of 2009. Productivity improvements in all businesses and the benefits derived from the restructuring program initiated in the second quarter of 2009 also contributed to improved earnings.
First quarter worldwide sales of $253.5 million increased 22 percent from the $208.3 million recorded in the same period in 2009. Foreign exchange had a favorable impact on sales of approximately $9.2 million or 4 percentage points. Operating income, excluding special items, was $23.9 million an increase of 206 percent from the $7.8 million recorded in the prior year's first quarter.
First quarter worldwide sales for the Specialty Minerals segment increased 20 percent to $172.1 million from the $143.6 million recorded in the first quarter of last year. Foreign exchange had a favorable impact on sales of approximately $5.8 million, or 4 percentage points. Income from operations of $19.2 million, excluding special items, increased 92 percent from the $10.0 million recorded in the same period in 2009.
--* Operating Income Up 38 Percent Sequentially/More than 200 Percent over Prior Year
--* Better than Expected Recovery in Refractories Segment
--* Stabilizing Business Conditions in End Markets
--* Productivity Improvements in All Business Units
--* Strong Balance Sheet
Minerals Technologies Inc. today reported net income of $15.4 million, or $0.82 per share, for the first quarter 2010, compared with $4.1 million, or $0.22 per share in the fourth quarter of 2009. Excluding special items, earnings per share were $0.85 compared with $0.62 per share in the fourth quarter of 2009.
"Our solid first quarter financial results indicate a significant improvement in earnings both sequentially, over the last three quarters, and year-over-year," said Joseph C. Muscari, chairman and chief executive officer. "This has returned the company to the levels of performance achieved prior to the recession that were, at that time, part of a transformation of Minerals Technologies to a higher level of performance. The actions we took in late 2008 and in 2009, combined with the progressive stabilizing of business conditions in our end markets, have generated a momentum for the company and put us back on course. Those actions, which include reducing our costs and focusing on productivity gains, enabled us to leverage sales and reduce break-even levels across all of our businesses. As volumes increase we expect to benefit accordingly."
Sequential Comparison to Fourth Quarter 2009
The company's worldwide sales in the first quarter were $253.5 million, a 1-percent sequential decline from the $256.2 million reported in the fourth quarter of 2009. Foreign exchange had an unfavorable impact on sales of approximately $4.0 million or 2 percentage points. Operating income, excluding special items, was $23.9 million, a 38-percent increase from the $17.3 million reported in the fourth quarter of 2009. As reported, income from operations was $23.0 million as compared with $4.5 million in the fourth quarter.
For the first quarter, worldwide sales in the company's Specialty Minerals segment, which consists of precipitated calcium carbonate (PCC) and Processed Minerals, were $172.1 million compared with $170.3 million in the fourth quarter of 2009, a 1-percent increase. Foreign exchange had an unfavorable impact on sequential sales growth for the quarter of approximately 1 percentage point. Income from operations, excluding special items, was $19.2 million, a 27-percent increase from the $15.1 million recorded in the fourth quarter of 2009.
Worldwide sales of PCC, which is used mainly in the manufacturing processes of the paper industry, were $145.1 million, a 1-percent decrease from the $146.3 million recorded in the fourth quarter of 2009. This decrease was associated primarily with foreign exchange. Overall, Paper PCC volumes increased 1 percent over the fourth quarter of 2009, and profitability improved primarily due to operational efficiencies and to the contractual recovery of raw material cost increases during the first quarter.
Worldwide sales of Processed Minerals products were $27.0 million in the first quarter of 2010, a 13-percent increase from the $24.0 million recorded in the fourth quarter of 2009. Processed Minerals products, which include ground calcium carbonate and talc, are used in the building materials, polymers, ceramics, paints and coatings, glass and other manufacturing industries. Processed Minerals experienced an 11-percent increase in volumes due to improved business conditions in the construction and automotive markets.
In the company's Refractories segment, sales in the first quarter of 2010 were $81.4 million, a 5-percent decrease from the $85.9 million recorded in the fourth quarter of 2009. This decline was primarily the result of the timing of equipment sales and an unfavorable foreign exchange impact of approximately 2 percentage points versus the fourth quarter of 2009. The Refractories segment, which provides products and services primarily to the worldwide steel industry, recorded operating income of $5.9 million, excluding special items, for the first quarter compared with $3.3 million in the fourth quarter of 2009, a 79-percent increase. The Refractories segment's improved profitability was primarily the result of improved business conditions in the North American steel sector resulting in volume increases of 7 percent in that region. In addition, lower raw materials costs and the successful execution of the restructuring program initiated in the second quarter of 2009 lowered break-even levels in this segment leading to a more flexible business model.
Year-Over-Year Comparisons
The company's first quarter net income of $15.4 million, or $0.82 per share, increased 270 percent from the $4.2 million, or $0.22 per share, recorded in the first quarter of 2009. Earnings per share, excluding special items, were $0.85 compared to $0.25 per share in the prior year, a 240-percent improvement. The increased earnings were primarily attributable to volume growth related to improvements in the company's end markets, which contrasts with the dramatic reduction in demand in the steel, paper, construction and automotive industries that existed in the first quarter of 2009. Productivity improvements in all businesses and the benefits derived from the restructuring program initiated in the second quarter of 2009 also contributed to improved earnings.
First quarter worldwide sales of $253.5 million increased 22 percent from the $208.3 million recorded in the same period in 2009. Foreign exchange had a favorable impact on sales of approximately $9.2 million or 4 percentage points. Operating income, excluding special items, was $23.9 million an increase of 206 percent from the $7.8 million recorded in the prior year's first quarter.
First quarter worldwide sales for the Specialty Minerals segment increased 20 percent to $172.1 million from the $143.6 million recorded in the first quarter of last year. Foreign exchange had a favorable impact on sales of approximately $5.8 million, or 4 percentage points. Income from operations of $19.2 million, excluding special items, increased 92 percent from the $10.0 million recorded in the same period in 2009.
PCC sales increased 18 percent from the $123.1 million recorded in the first quarter of 2009 on volume increases of 14 percent. Processed Minerals products first quarter sales were up 32 percent from the $20.5 million in the same period last year. The product line's volumes increased 20 percent and experienced a more favorable product mix.
Refractories segment sales in the first quarter of 2010 were up 26 percent to $81.4 million from the $64.7 million recorded in the same period in 2009. Foreign exchange had a favorable impact on sales of approximately $3.4 million or 5 percentage points. Refractory product sales grew 17 percent in the first quarter of 2010 to $62.6 million from $53.5 million in the prior year as volumes grew 24 percent but was partially offset by a reduction in equipment sales and the pricing effect of lower raw material costs. Metallurgical product sales increased 68 percent to $18.8 million in the first quarter of 2010 from $11.2 million in the prior year as volumes increased 64 percent. The Refractories segment recorded operating income of $5.9 million, excluding special items, compared to an operating loss of income of $1.9 million in the first quarter of last year. This growth was primarily attributable to the aforementioned volume increases and the benefits from the restructuring program.
"Last year was a very difficult year," said Mr. Muscari, "but one where we were able to become stronger, and as such, we are clearly better positioned to capitalize on our growth opportunities and perform at higher levels as we go forward."
Refractories segment sales in the first quarter of 2010 were up 26 percent to $81.4 million from the $64.7 million recorded in the same period in 2009. Foreign exchange had a favorable impact on sales of approximately $3.4 million or 5 percentage points. Refractory product sales grew 17 percent in the first quarter of 2010 to $62.6 million from $53.5 million in the prior year as volumes grew 24 percent but was partially offset by a reduction in equipment sales and the pricing effect of lower raw material costs. Metallurgical product sales increased 68 percent to $18.8 million in the first quarter of 2010 from $11.2 million in the prior year as volumes increased 64 percent. The Refractories segment recorded operating income of $5.9 million, excluding special items, compared to an operating loss of income of $1.9 million in the first quarter of last year. This growth was primarily attributable to the aforementioned volume increases and the benefits from the restructuring program.
"Last year was a very difficult year," said Mr. Muscari, "but one where we were able to become stronger, and as such, we are clearly better positioned to capitalize on our growth opportunities and perform at higher levels as we go forward."
