Feb. 09, 2011 - Minerals Technologies Inc. reported a net income of $66.9 million for the full year 2010 compared to net income of $29.1 million for 2009, excluding special items, a 129-percent increase.
In a release on February 3, the Company reported that diluted earnings per share for the full year were $3.58 as compared with earnings of $1.55 in the prior year, excluding special items. As reported, Minerals Technologies recorded a net loss of $23.8 million, or $1.27 per share, in 2009.
Minerals Technologies' worldwide sales for the full year 2010 were $1.0 billion compared with $907.3 million recorded in 2009, a 10-percent increase. Revenue increased in each of the company's product lines in 2010. Operating income for the full year 2010, excluding special items, was $99.1 million. Operating income, as reported, was $98.3 million.
"Minerals Technologies achieved the highest annual earnings in its 18-year history," said Joseph C. Muscari, chairman and chief executive officer. "The year was also highlighted by continued execution of our growth strategies of geographic expansion and new product development. In Asia, we recently announced the signing of contracts for the construction of two new precipitated calcium carbonate satellite plants in India, one with West Coast Paper Ltd., and the other with JK Paper Ltd. During 2010, we ramped up production of our first satellite in India, signed agreements or began construction of two additional satellite PCC plants, expanded two others and launched Fulfill, a new portfolio of PCC products."
Fourth Quarter
Year-Over-Year Comparisons
The company's fourth quarter net income of $15.8 million, or $0.85 per share, compared with $11.7 million, or $0.62 per share, excluding special items, in the fourth quarter of 2009, a 35-percent improvement. This increase was primarily attributable to cost reduction initiatives, improvements in some of the company's end markets and the restructuring the company undertook in the second quarter of 2009. As reported, the company had net income of $4.1 million, or $0.22 per share, in the fourth quarter of 2009.
Fourth quarter worldwide sales decreased 5 percent to $243.3 million from $256.2 million in the same period in 2009. The underlying sales growth, however, was approximately 2 percent because the company's fourth quarter 2010 results reflect 6 fewer days in the quarter compared to the fourth quarter of 2009. The 6 fewer days resulted in an approximate 6 percent volume decline in all product lines. Foreign exchange had an unfavorable impact on sales of approximately $2.5 million or 1 percentage point of decline. Income from operations was $22.8 million compared to $17.3 million, excluding special items in the prior year, a 32-percent increase. As reported, the company recorded income from operations of $4.5 million in the fourth quarter of 2009.
During the fourth quarter, Minerals Technologies announced the commercialization of its Fulfill portfolio of products to increase PCC filler levels in uncoated freesheet paper at a paper mill in Asia. This effort is a result of the company's rejuvenated new product pipeline.
Fourth quarter worldwide sales for the Specialty Minerals segment, which includes the PCC and Processed Minerals product lines, decreased 7 percent to $158.5 million from $170.3 million in the same quarter of 2009 due to volume declines in the PCC product line, which were primarily the result of fewer days in the quarter. Foreign exchange had an unfavorable impact on sales of approximately $1.9 million, or 1 percentage point of decline. Income from operations increased 15 percent to $17.3 million from $15.1 million, excluding special items, in the same period in 2009. This increase was attributable to the benefits of our restructuring programs and other cost savings initiatives.
PCC sales decreased 8 percent to $134.3 million from $146.3 million recorded in the fourth quarter of 2009 on a volume decline of about 8 percent, due primarily to the fewer number of days in the quarter. Processed Minerals products fourth quarter sales increased 1 percent to $24.2 million from $24.0 million in the same period of 2009 on volume increases, primarily talc. On a per day basis, sales in Processed Minerals increased 7 percent.
Refractories segment sales in the fourth quarter of 2010 decreased 1 percent to $84.8 million from $85.9 million recorded in the same period in 2009. Refractory products sales remained flat over prior year on strong equipment sales, which helped to offset a 4-percent volume decline in Refractory products from the fourth quarter of 2009. Metallurgical products sales decreased 5 percent to $16.5 million from $17.4 million in the prior year. The Refractory segment recorded operating income of $6.6 million as compared with $3.3 million in the prior year, excluding special items. This increase was primarily attributable to higher equipment sales and the benefits of our cost reduction initiatives, including the restructuring program.
Sequential Comparison
The company's worldwide sales in the fourth quarter decreased 3 percent to $243.3 million from $249.8 million in the third quarter. This decline was primarily in Processed Minerals due to the seasonal downturn in the building and construction markets. Income from operations was $22.8 million compared to $25.0 million in the prior quarter.
The Specialty Minerals segment's worldwide sales in the fourth quarter decreased 5 percent to $158.5 million from $166.1 million in the prior quarter. Income from operations decreased 12 percent to $17.3 million from $19.7 million in the third quarter. The Processed Minerals product line sales declined 17 percent as a result of the seasonal downturn of the construction industry.
Worldwide sales of PCC, which is used primarily in the manufacturing processes of the paper industry, decreased 2 percent to $134.3 million compared with $136.8 million recorded in the third quarter. Paper PCC volumes were down approximately 4 percent from the third quarter due primarily to extended downtime taken in some European paper mills.
In the company's Refractories segment, sales for the fourth quarter were $84.8 million, a 1-percent increase over the $83.7 million recorded in the prior quarter. The segment recorded operating income of $6.6 million compared to $6.3 million in the third quarter.
Sales of refractory products and systems, used primarily in the steel market, increased 4 percent in the fourth quarter to $68.3 million from $65.4 million in the third quarter of 2010. This increase was attributable to additional equipment sales. Sales in the metallurgical product line decreased 10 percent sequentially to $16.5 million from $18.3 million in the previous quarter due to reduced volumes.
"During 2010, we experienced a strong turnaround in all our product lines, especially Refractories and Processed Minerals. This improved performance is clearly the result of the actions we took to reduce break-even levels, including tight expense control, improved productivity and the restructuring we undertook in the second quarter of 2009. We also saw the benefit of improved economic conditions in our all of our end markets," said Muscari. "The company is now back to a level of performance comparable to what we achieved before the recession in 2008, at lower sales volumes. Going forward, we expect to continue to improve the company's financial performance through our growth strategies of geographic expansion and deployment of our new products."
In a release on February 3, the Company reported that diluted earnings per share for the full year were $3.58 as compared with earnings of $1.55 in the prior year, excluding special items. As reported, Minerals Technologies recorded a net loss of $23.8 million, or $1.27 per share, in 2009.
Minerals Technologies' worldwide sales for the full year 2010 were $1.0 billion compared with $907.3 million recorded in 2009, a 10-percent increase. Revenue increased in each of the company's product lines in 2010. Operating income for the full year 2010, excluding special items, was $99.1 million. Operating income, as reported, was $98.3 million.
"Minerals Technologies achieved the highest annual earnings in its 18-year history," said Joseph C. Muscari, chairman and chief executive officer. "The year was also highlighted by continued execution of our growth strategies of geographic expansion and new product development. In Asia, we recently announced the signing of contracts for the construction of two new precipitated calcium carbonate satellite plants in India, one with West Coast Paper Ltd., and the other with JK Paper Ltd. During 2010, we ramped up production of our first satellite in India, signed agreements or began construction of two additional satellite PCC plants, expanded two others and launched Fulfill, a new portfolio of PCC products."
Fourth Quarter
Year-Over-Year Comparisons
The company's fourth quarter net income of $15.8 million, or $0.85 per share, compared with $11.7 million, or $0.62 per share, excluding special items, in the fourth quarter of 2009, a 35-percent improvement. This increase was primarily attributable to cost reduction initiatives, improvements in some of the company's end markets and the restructuring the company undertook in the second quarter of 2009. As reported, the company had net income of $4.1 million, or $0.22 per share, in the fourth quarter of 2009.
Fourth quarter worldwide sales decreased 5 percent to $243.3 million from $256.2 million in the same period in 2009. The underlying sales growth, however, was approximately 2 percent because the company's fourth quarter 2010 results reflect 6 fewer days in the quarter compared to the fourth quarter of 2009. The 6 fewer days resulted in an approximate 6 percent volume decline in all product lines. Foreign exchange had an unfavorable impact on sales of approximately $2.5 million or 1 percentage point of decline. Income from operations was $22.8 million compared to $17.3 million, excluding special items in the prior year, a 32-percent increase. As reported, the company recorded income from operations of $4.5 million in the fourth quarter of 2009.
During the fourth quarter, Minerals Technologies announced the commercialization of its Fulfill portfolio of products to increase PCC filler levels in uncoated freesheet paper at a paper mill in Asia. This effort is a result of the company's rejuvenated new product pipeline.
Fourth quarter worldwide sales for the Specialty Minerals segment, which includes the PCC and Processed Minerals product lines, decreased 7 percent to $158.5 million from $170.3 million in the same quarter of 2009 due to volume declines in the PCC product line, which were primarily the result of fewer days in the quarter. Foreign exchange had an unfavorable impact on sales of approximately $1.9 million, or 1 percentage point of decline. Income from operations increased 15 percent to $17.3 million from $15.1 million, excluding special items, in the same period in 2009. This increase was attributable to the benefits of our restructuring programs and other cost savings initiatives.
PCC sales decreased 8 percent to $134.3 million from $146.3 million recorded in the fourth quarter of 2009 on a volume decline of about 8 percent, due primarily to the fewer number of days in the quarter. Processed Minerals products fourth quarter sales increased 1 percent to $24.2 million from $24.0 million in the same period of 2009 on volume increases, primarily talc. On a per day basis, sales in Processed Minerals increased 7 percent.
Refractories segment sales in the fourth quarter of 2010 decreased 1 percent to $84.8 million from $85.9 million recorded in the same period in 2009. Refractory products sales remained flat over prior year on strong equipment sales, which helped to offset a 4-percent volume decline in Refractory products from the fourth quarter of 2009. Metallurgical products sales decreased 5 percent to $16.5 million from $17.4 million in the prior year. The Refractory segment recorded operating income of $6.6 million as compared with $3.3 million in the prior year, excluding special items. This increase was primarily attributable to higher equipment sales and the benefits of our cost reduction initiatives, including the restructuring program.
Sequential Comparison
The company's worldwide sales in the fourth quarter decreased 3 percent to $243.3 million from $249.8 million in the third quarter. This decline was primarily in Processed Minerals due to the seasonal downturn in the building and construction markets. Income from operations was $22.8 million compared to $25.0 million in the prior quarter.
The Specialty Minerals segment's worldwide sales in the fourth quarter decreased 5 percent to $158.5 million from $166.1 million in the prior quarter. Income from operations decreased 12 percent to $17.3 million from $19.7 million in the third quarter. The Processed Minerals product line sales declined 17 percent as a result of the seasonal downturn of the construction industry.
Worldwide sales of PCC, which is used primarily in the manufacturing processes of the paper industry, decreased 2 percent to $134.3 million compared with $136.8 million recorded in the third quarter. Paper PCC volumes were down approximately 4 percent from the third quarter due primarily to extended downtime taken in some European paper mills.
In the company's Refractories segment, sales for the fourth quarter were $84.8 million, a 1-percent increase over the $83.7 million recorded in the prior quarter. The segment recorded operating income of $6.6 million compared to $6.3 million in the third quarter.
Sales of refractory products and systems, used primarily in the steel market, increased 4 percent in the fourth quarter to $68.3 million from $65.4 million in the third quarter of 2010. This increase was attributable to additional equipment sales. Sales in the metallurgical product line decreased 10 percent sequentially to $16.5 million from $18.3 million in the previous quarter due to reduced volumes.
"During 2010, we experienced a strong turnaround in all our product lines, especially Refractories and Processed Minerals. This improved performance is clearly the result of the actions we took to reduce break-even levels, including tight expense control, improved productivity and the restructuring we undertook in the second quarter of 2009. We also saw the benefit of improved economic conditions in our all of our end markets," said Muscari. "The company is now back to a level of performance comparable to what we achieved before the recession in 2008, at lower sales volumes. Going forward, we expect to continue to improve the company's financial performance through our growth strategies of geographic expansion and deployment of our new products."
