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| Company Reports Record Operating Income of $32.4 million, Up 7% over Prior Year and Achieves Record First Half Earnings-Up 8% |
NEW YORK, July 26, 2013 - (ACN Newswire) - Minerals Technologies Inc. (NYSE: MTX) today reported record second quarter diluted earnings per common share of $0.63 from continuing operations, an 11-percent increase over the $0.57 recorded in the same period in 2012.
Highlights:
-- Sales Increased 2% over Prior Year - Underlying Sales Increased 4%, excluding Foreign Exchange
-- Record Operating Income for Specialty Minerals Segment; 15.0% of Sales
-- Restarted PCC Plant in France Supplying New Paper Mill Owner - Double A Paper
-- Contribution from FulFill(R) Continues on Track for 2013 Projection
-- Start-Up of Ultrafine Expansion for Specialty PCC
"We continued our strong financial performance, achieving record earnings for both the second quarter and the first half of 2013," said Robert S. Wetherbee, chief executive officer. "The company reported a 4-percent increase in underlying sales that was a direct result of executing our strategies of geographic expansion and new product innovation. An increase in Paper PCC volume was based on the start-up of three new satellite plants in Asia since the second quarter of 2012, increased penetration of our FulFill(R) technology, and the restart of production at our satellite plant in France, which has been idle for nearly two years. In the Refractories segment, our agreement with United Steel Company in Bahrain, which began operations in the third quarter of 2012, also contributed to the revenue growth."
Worldwide net sales in the second quarter increased 2 percent from the previous year to $256.8 million from $251.4 million. Foreign exchange had an unfavorable impact on sales of approximately $3.7 million.
Income from operations increased 7 percent to a record $32.4 million in the second quarter of 2013, due to an 11 percent improvement in the Specialty Minerals segment. Income from operations represented 12.6 percent of sales in the second quarter of 2013 as compared with 12.0 percent of sales in the prior year, a 5-percent increase.
In the second quarter, the company recorded a loss from discontinued operations of $4.9 million, net of tax, or $0.14 per share, primarily related to facility closure costs at its Paper PCC merchant facility in Walsum, Germany. Earnings per share, including discontinued operations, were $0.49.
The company generated approximately $34 million in cash flow from operations, and the annualized rate of return on capital was 9.9 percent in the second quarter. The company also repurchased $10.7 million in stock during the quarter.
Second quarter worldwide sales in the Specialty Minerals segment, which includes the PCC and Processed Minerals product lines, increased 2 percent to $168.3 million over the second quarter of 2012. Operating income for the segment increased 11 percent to $25.2 million, from $22.7 million recorded in the second quarter of 2012-a record quarter for that segment.
Worldwide net sales of PCC, which is primarily used in the manufacturing process of the paper industry, increased 1 percent to $135.6 million. Foreign exchange had an unfavorable impact on sales of $1.7 million. Paper PCC sales increased 1 percent to $118.3 million over the prior year. Paper PCC growth was attributable to increased volumes in Europe and Latin America, the new satellite plants in Asia, and increased usage of the FulFill(R) technology at existing customers. These factors more than offset weaker demand in North America due to seasonal paper mill maintenance outages. Sales of Specialty PCC increased 2 percent to $17.3 million from the same period last year primarily due to higher volumes in the U.S. and increased pricing. Specialty PCC sales increased 8 percent in the U.S. driven by the expansion at our facility in Adams, Massachusetts. This was partially offset by weak market demand in Europe.
Net sales of Processed Minerals products increased 3 percent to $32.7 million in the second quarter compared with $31.8 million in 2012. Ground calcium carbonate sales increased 5 percent to $19.7 million, due primarily to a more favorable product mix.
Net sales in the Refractories segment in the second quarter increased 3 percent to $88.5 million from $85.9 million in the same period in 2012. Foreign exchange had an unfavorable impact on sales of approximately $2.0 million. Sales of refractory products and systems to steel and other industrial applications grew 3 percent to $67.2 million due to incremental sales from the operations in Bahrain. Sales of metallurgical products increased 4 percent to $21.3 million in the second quarter of 2013 due to higher volumes in both North America and Europe. Sales grew in both product lines despite weak market conditions in North America and Europe.
The Refractories segment recorded operating income of $8.5 million, a 2-percent decrease from the second quarter of 2012, primarily due to lower profitability from equipment sales and the closure of two North American steel mill customers in the second quarter of 2012.
"Operating performance continued to be strong, and we will continue to deploy our key strategies of geographic expansion, new product innovation and operational excellence that will provide us with continued performance improvement and additional opportunities for future growth," said Mr. Wetherbee.
Minerals Technologies will sponsor a conference call tomorrow, July 26, 2013 at 11 a.m. The conference call will be broadcast live on the company web site, which can be found at www.mineralstech.com .
This press release may contain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, which describe or are based on current expectations. Actual results may differ materially from these expectations. In addition, any statements that are not historical fact (including statements containing the words "believes," "plans," "anticipates," "expects," "estimates," and similar expressions) should also be considered to be forward-looking statements. The company undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future events, or otherwise. Forward-looking statements in this document should be evaluated together with the many uncertainties that affect our businesses, particularly those mentioned in the risk factors and other cautionary statements in our 2012 Annual Report on Form 10-K and in our other reports filed with the Securities and Exchange Commission.
For further information about Minerals Technologies Inc. look on the internet at http://www.mineralstech.com .
MTX Q2 2013 Financial: http://hugin.info/147757/R/1718848/571898.xls
This announcement is distributed by Thomson Reuters on behalf of Thomson Reuters clients.
The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and other applicable laws; and
(ii) they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Minerals Technologies Inc via Thomson Reuters ONE
Topic: Earnings
Source: Minerals Technologies Inc.
https://www.acnnewswire.com
From the Asia Corporate News Network
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