|
|
|
|
|
|
| Reported Earnings per Share Were $1.06, Including Special Items Associated with the Acquisition of AMCOL International |
NEW YORK, Oct 24, 2014 - (ACN Newswire) - Highlights:
-- Acquisition Highly Accretive to Earnings
-- Synergies from Integration Tracking Ahead of Target
-- Operating Income Margin-14.1% of Sales
-- Double-Digit Operating Margins in All Segments
-- Debt Repayment of $38 Million in Third Quarter
-- Strong Cash Flows of $87 Million in Third Quarter
Minerals Technologies Inc. (NYSE: MTX) today reported record third quarter diluted earnings per common share, excluding special items, of $1.25, a 98-percent increase over the $0.63 recorded in the same period in 2013.
"Minerals Technologies achieved record third quarter financial results with all five business segments contributing double digit operating income margins," said Joseph C. Muscari, chairman and chief executive officer. "The third quarter is the first full quarter of contribution from the former AMCOL businesses, and our financial performance illustrates how highly accretive the acquisition is, with a 98 percent increase in earnings per share. The integration of the three new business segments is moving smoothly and we are ahead of target to achieve $50 million in synergies in the first two years."
Worldwide net sales in the third quarter increased 114 percent to $543.5 million from $254.2 million in the same period of 2013.
Income from operations, excluding special items, was $76.8 million, a 135-percent increase over the third quarter of 2013 and represented 14.1 percent of sales. Income from operations, as reported, was $66.8 million.
The special items incurred in the third quarter related to the acquisition were transaction and integration costs of $4.2 million, and restructuring and other charges of $5.8 million. The combined effect of these non-recurring items reduced earnings by $0.19 per share.
The company's cash flow from operations was very strong in the third quarter at approximately $87 million and cash and short-term investments were $220.4 million and the company repaid $38 million of its long-term debt in the quarter.
As a result of the acquisition, which was completed on May 9, 2014, Minerals Technologies now has five reportable segments: Specialty Minerals, Refractories, Performance Materials, Construction Technologies, and Energy Services.
Third quarter worldwide sales in the Specialty Minerals segment, which includes the precipitated calcium carbonate (PCC) and Processed Minerals product lines, were $163.0 million, a decrease of 3 percent from the same period in 2013. Operating income for the segment increased 2 percent to $26.5 million - a record quarter for that segment - and was 16.3 percent of sales, excluding special items. The increase was driven by higher sales and improved profitability in the Processed Minerals product line. Reported operating income was $26.0 million as restructuring charges of $0.5 million were recorded in the quarter.
Worldwide net sales of PCC, which is used primarily in the manufacturing processes of the paper industry, decreased 4 percent to $129.9 million in the quarter. Paper PCC sales decreased 5 percent to $113.4 million from the same period in the prior year, primarily as a result of paper capacity grade realignments in North America.
"During the quarter, the company announced an agreement with Sun Paper, the largest privately owned paper company in China, to deploy its NewYield(TM) Integrated Process Technology at Sun's pulp and paper operations in Shandong Province. This is a breakthrough technology that converts a paper and pulp mill waste stream into a functional pigment for filling paper while eliminating the cost of environmental disposal and remediation of certain waste streams to papermakers. The facility, which will be operational in the third quarter of next year, will produce 60,000 tons of filler pigment from Sun's waste stream," said Mr. Muscari. "Also, in the third quarter, MTI signed another commercial agreement with a North American paper company to provide FulFill(R) E-325 at a paper mill that produces wood-free paper. This is the company's fifth such agreement in North America and the seventeenth overall. We continue to be actively engaged with 20 other paper mills around the world to deploy the technology."
Net sales of Processed Minerals products increased 5 percent to $33.1 million in the third quarter of 2014. Talc volumes increased 4 percent and Ground Calcium Carbonate volumes increased 2 percent.
Net sales in the Refractories segment in the third quarter of 2014 increased 4 percent to $90.4 million. Sales of refractory products and systems to steel and other industrial applications grew 5 percent to $69.7 million due to volume increases in all regions. Sales of metallurgical products increased 1 percent to $20.7 million in the third quarter of 2014.
The Refractories segment operating income increased 15 percent to $9.7 million. The growth in operating income was primarily due to strong volumes and improved profitability in refractory products in both North America and Europe and to increased productivity.
We also announced that Minteq International Inc., the operating unit for Refractories, entered into two new multi-year refractory maintenance agreements with steel makers based on the cost per ton of steel produced. The company initiated a three-year agreement with Bhushan Steel Ltd. in India, and a two-year arrangement with Tata Steel Europe in the United Kingdom. Cost-per-ton contracts provide longer-term stability and a closer working relationship with the customer.
Performance Materials, Construction Technologies and Energy Services all contributed to the solid financial performance in the quarter with increased sales and higher levels of profitability. When combined, the sales of the acquired business increased 9 percent over the third quarter of last year on a pro forma basis.
Sales in the Performance Materials segment were $135.6 million for the quarter, a 3-percent increase over pro forma sales for the prior year. The Metalcasting product line had sales of $70.0 million, and sales in Household, Personal Care and Specialty Products were $42.8 million. Basic Minerals and other products generated sales of $22.8 million. Operating income, excluding special items, was $20.7 million and represented 15.3 percent of sales. Reported operating income was $18.7 million as $2.0 million in severance-related restructuring charges were recorded in the quarter.
Sales in the Construction Technologies segment were $69.1 million for the quarter, a 10-percent increase over the prior year. Environmental Products contributed $34.5 million in sales and Building Materials and other products had sales of $34.6 million. Operating income, excluding special items, was $10.3 million and represented 14.9 percent of sales. Reported operating income was $8.3 million as $2.0 million in severance-related restructuring charges were recorded in the quarter.
The Energy Services segment generated sales of $85.4 million for the third quarter, a 17-percent increase over the prior year. Operating income, excluding special items, was $11.5 million and 13.5 percent of sales. Reported operating income was $10.2 million as $1.3 million in severance-related restructuring charges were recorded in the quarter.
"Our third quarter financial performance was strong, illustrating clearly that the highly accretive acquisition of AMCOL has created a stronger company," said Mr. Muscari. "Going forward, we will continue our accelerated integration and transformation of the new businesses. We now hold the world-leading positions in PCC and bentonite, giving us a broader, less cyclical product portfolio, which provides a solid foundation for geographic growth and new product innovation."
Restructuring
Minerals Technologies announced that it would continue the restructuring program that began in the second quarter of 2014. This restructuring will result in the reduction of an additional 3 percent of the workforce over the 5 percent announced in the second quarter for a total permanent reduction of approximately 8 percent of its workforce. The company has taken an $11.8 million severance-related restructuring charge for this program, of which $5.8 million was recorded in the third quarter. This restructuring will occur across all business segments of the company and is estimated to provide annualized savings of approximately $20 million. The reductions, which will occur over the next 12 months, includes elimination of duplicate corporate functions, deployment of our shared service model and consolidation and alignment of various corporate functions and regional locations across the company.
Minerals Technologies will sponsor a conference call tomorrow, October 24, 2014 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 2013 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.
Contact:
Rick B. Honey
+1-212-878-1831
MTX Third Quarter Financials: http://hugin.info/147757/R/1864975/654699.xls
###
This announcement is distributed by NASDAQ OMX Corporate Solutions on behalf of NASDAQ OMX Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Minerals Technologies Inc via Globenewswire
Topic: Press release summary
Source: Minerals Technologies Inc.
https://www.acnnewswire.com
From the Asia Corporate News Network
Copyright © 2024 ACN Newswire. All rights reserved. A division of Asia Corporate News Network.
|
|
|
|
|
|
|
|
