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- Company Achieves Record Operating Income of $32.8 million;
- Up 15% over Prior Year and 12.9% of Sales |
NEW YORK, Nov 1, 2013 - (ACN Newswire) - Minerals Technologies Inc. (NYSE: MTX) today reported third quarter diluted earnings per common share of $0.63 compared with $0.54 per share in the same period of 2012, a 17-percent increase.
Highlights:
-- Sales Increased 3% over Prior Year-Underlying Sales Increased 4%, excluding Foreign Exchange
-- Record Operating Income for Specialty Minerals Segment-up 12% over Prior Year; 15.5% Operating Margin
-- New Satellite PCC Plants Contribute to Record Performance
-- Two New Satellite Contracts Signed During Quarter
-- Fulfill(TM) E-325 Technology Commercial Agreement in India
-- New, Two-Year $150 Million Stock Repurchase Program Authorized in Quarter
Income from operations increased 15-percent over the same period last year to a record $32.8 million from $28.6 million. The improvement in operating income occurred in both the Specialty Minerals and Refractories Segments. This was driven by the contribution from new satellite precipitated calcium carbonate (PCC) plants, sales growth in ground calcium carbonate (GCC) and metallurgical wire, higher productivity, expense control and pricing improvements. The company also generated approximately $34.0 million in cash flow from operations, and return on capital was 10.1 percent, an increase of 11 percent from the same quarter in 2012. During the third quarter, the company repurchased $23.8 million in shares to complete the $75 million share repurchase program authorized in 2011. On September 19, the company's Board of Directors authorized a new two-year $150 million share repurchase program.
"We achieved record operating income of $32.8 million," said Robert S. Wetherbee, president and chief executive officer. "This solid financial performance is a result of continued momentum with our two major growth initiatives-geographic expansion and new product development. We signed two new contracts to build satellite PCC plants-one in China and the second in Europe. Also, a paper mill in India recently agreed to adopt our Fulfill(TM) E-325 technology to increase PCC fill rates to reduce the use of more expensive fiber."
Third quarter worldwide underlying sales increased 4 percent to $254.2 million from the prior year primarily due to increased sales in our Processed Minerals and North America Specialty PCC product lines, the re-start of the satellite PCC facility in Alizay, France, the ramp-up of new satellite PCC plants in India and Thailand, and increased sales in metallurgical wire. Including the effect of foreign exchange, sales increased 3 percent.
Third quarter worldwide underlying sales for the Specialty Minerals segment, which includes the PCC and Processed Minerals product lines, increased 4 percent over the third quarter of 2012 to $167.4 million. Including the effect of foreign exchange, sales increased 3 percent. Income from operations increased 12 percent to $26.0 million from $23.3 million in the same period in 2012. The growth in operating income was due to volume and margin improvement in the Processed Minerals product line, strong contributions from the new Asian satellite PCC plants and the re-start of the Alizay operation.
Worldwide underlying sales of PCC, used primarily in the manufacturing processes of the paper industry, increased 2 percent to $135.9 million from the third quarter of 2012. Underlying sales of Paper PCC grew 2 percent over the prior year to $119.3 million. Including foreign exchange, sales of both PCC and Paper PCC increased 1 percent. North America Specialty PCC sales increased 9 percent over the same period in 2012.
During the quarter, the company signed contracts for two new satellite PCC plants. The first was a joint venture agreement with Nanning Jindaxing Paper Industry Co. Ltd. for the construction of a 45,000-metric ton satellite PCC plant at Jindaxing Paper's papermaking facility in Guangxi Province, China. This new satellite facility, which will produce PCC as a filler pigment for Jindaxing Paper, is expected to become operational in the fourth quarter of 2014. Minerals Technologies also signed an agreement for a 14,000-metric ton satellite PCC plant in Europe with an established paper company that wished to remain unnamed for competitive reasons. The satellite facility, which will also produce PCC as a filler pigment, is expected to become operational in the fourth quarter of 2014.
Recently, the company announced a commercial agreement with a paper mill in India to deploy its FulFill(R) high-filler technology. This agreement is with a papermaker that wished to remain unnamed. The company now has 14 commercial agreements with papermakers around the globe for FulFill(R) E-325. The FulFill(R) brand of high-filler technologies offers papermakers decreased dependency on more expensive natural fiber, and allows papermakers to increase loading levels of PCC by three to five points, and increases PCC usage between 15 to 20 percent.
Processed Minerals products third quarter sales increased 10 percent over the prior year to $31.5 million as Talc sales grew 8 percent and GCC sales increased 12 percent. Processed Minerals products serve the residential and commercial construction as well as automotive markets.
Third quarter 2013 underlying sales in the Refractories segment, whose products are used primarily in the steel market, increased 4 percent to $86.8 million. Including the effect of foreign exchange, sales increased 2 percent. Refractory Products sales increased slightly to $66.3 million from $66.0 million in the prior year. Metallurgical products sales increased 10 percent to $20.5 million from $18.7 million recorded in the same period in 2012. The Refractory segment recorded operating income of $8.4 million, a 17-percent increase from the $7.2 million in the third quarter of 2012. This increase was primarily the result of a 10-percent increase in metallurgical wire sales and a 12-percent sales increase in refractory products sales in Europe and the Middle East, as well as improved productivity.
"We posted record financial performance for both the quarter and the nine months," said Mr. Wetherbee. "This performance track is based upon growth in sales and income, strong cash flow and improved operational efficiencies. More essential for the long term, however, is the momentum we are seeing in our major growth strategies of geographic expansion and new product innovation. We expect to continue to improve shareholder value as we build upon this strong performance."
Minerals Technologies has scheduled an analyst conference call for Friday, November 1, 2013 at 11:00 a.m. to discuss operating results for the third quarter. The conference call will be broadcast over the company's website, www.mineralstech.com.
This press release may contain forward-looking statements, which describe or are based on current expectations; in particular, statements of anticipated changes in the business environment in which the company operates and in the company's future operating results. 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.
Contact:
Rick B. Honey
+1-212-878-1831
Q3 2013 Financials: http://hugin.info/147757/R/1739835/584067.xls
This announcement is distributed by Thomson Reuters on behalf of Thomson Reuters clients.
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(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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