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- Reported Earnings per Share were $0.83, Including Special Items Associated with the Restructuring of the Energy Services Segment
- 2014 Acquisition Continues to be Highly Accretive to Earnings |
NEW YORK, Oct 23, 2015 - (ACN Newswire) - Highlights:
- Operating Income of $62.8 Million and 13.9% of Sales, Excluding Special Items
- Strong Cash Flows from Operations of $80 Million
- $50 Million Debt Reduction in the Third Quarter
- Signed 22nd and 23rd Commercial Agreements for FulFill(R) High Filler Technology
- Successful Start-Up of Satellite to Produce NewYield(TM) Technology
- Board Authorizes Two-Year $150 Million Share Repurchase Program
Minerals Technologies Inc. (NYSE: MTX) today reported third quarter diluted earnings per common share, excluding special items, of $1.06. Reported earnings per share were $0.83, including special items associated with exiting the Coiled Tubing service line and restructuring other on-shore domestic service lines within the Energy Services segment.
"Minerals Technologies delivered a solid performance in the third quarter with four of our five business segments recording double digit operating margins," said Joseph C. Muscari, chairman and chief executive officer. "Our businesses in China grew 20 percent in the third quarter, and our long-term growth targets in the region remain on track as we increase our penetration in the Paper, Metalcasting and Household and Personal Care markets. The 2014 AMCOL acquisition continues to be highly accretive, and we will achieve greater than $70 million in synergies by year end."
Worldwide net sales in the third quarter decreased 17 percent to $451.0 million from $543.5 million in the same period of 2014. Foreign exchange had an unfavorable impact on sales of $27.6 million, or 5 percent. The exit from the Coiled Tubing service line in early August reduced consolidated sales by an additional $17.4 million, or 3 percent.
Income from operations, excluding special items, was $62.8 million and represented 13.9 percent of sales. The combined unfavorable impact on operating income of foreign exchange and the exit from Coiled Tubing was $6.7 million. Income from operations, as reported, was $49.9 million.
The special items incurred in the third quarter were restructuring charges of $10.5 million related to lease termination costs, inventory write-offs and impairment of assets from the exit of Coiled Tubing and other on-shore service lines within the Energy Services segment. In addition, we incurred acquisition-related integration costs of $2.4 million. The combined effect of these non-recurring items reduced earnings by $0.23 per share.
The company's cash flow from operations was strong in the third quarter at more than $80 million and cash and short-term investments were $228 million. During the quarter, the company repaid an additional $50 million of its long-term debt.
Third quarter worldwide sales in the Specialty Minerals segment, which includes the precipitated calcium carbonate (PCC) and Processed Minerals product lines, were $156.5 million, a decrease of 4 percent from the same period in 2014. Foreign exchange had an unfavorable impact on sales of $9.6 million, or 6 percentage points. Therefore, underlying sales in the segment increased 2 percent. Operating income for the segment was $25.0 million and represented 16.0 percent of sales. Operating income was negatively affected by foreign exchange.
Worldwide net sales of PCC, which is used primarily in the manufacturing processes of the paper industry, were $121.9 million in the quarter. The company's Paper PCC sales in China grew 52 percent over 2014 due to the start-up of three new facilities since the third quarter of 2014. Total PCC volumes increased 3% over last year.
"During the quarter, we announced our twenty-second and twenty-third commercial agreements for our FulFill(R) high filler technology with major papermakers in North America and Asia," said Mr. Muscari. "We also successfully began operation of a satellite plant at Sun Paper's pulp and paper operations in Shandong Province, China, for our NewYield(TM) process technology that converts a waste stream into functional filler for paper. This is a breakthrough technology that eliminates the cost of environmental disposal and remediation of certain waste streams to papermakers."
Net sales of Processed Minerals products increased 5 percent to $34.6 million in the third quarter of 2015 from $33.1 million in the prior year, primarily due to a 7 percent increase in ground calcium carbonate sales.
Sales in the Performance Materials segment were $126.5 million for the quarter. Foreign exchange had an unfavorable impact on sales of $4.4 million. Metalcasting and Basic Minerals sales were affected by some weakness in the agricultural sector and lower drilling fluid sales due to the reduction in oil prices, respectively. Sales in Household, Personal Care and Specialty Products were approximately the same as the prior year. However, Pet Care product sales increased 15 percent and Personal Care products increased 32 percent. Operating income, excluding special items, grew 10 percent to $22.7 million and represented 17.9 percent of sales as compared to 15.3 percent of sales in the prior year. This growth was attributable to productivity improvements and cost controls.
Sales in the Construction Technologies segment were $49.7 million for the quarter. Foreign exchange had an unfavorable impact on sales of $3.8 million. Operating income was $6.1 million and represented 12.3 percent of sales. Sales and operating income in this business segment were affected by fewer large projects as compared to last year.
Net sales in the Refractories segment in the third quarter of 2015 were $77.4 million. Foreign exchange had an unfavorable impact on sales of $6.9 million. Operating income was $7.9 million and represented 10.2 percent of sales. Sales and operating income were affected by lower sales volumes stemming from continued weak global steel demand and the negative affect of foreign exchange.
The Energy Services segment sales were $40.9 million for the third quarter, a 52-percent decrease from the prior year. The exit from the Coiled Tubing service line in early August reduced sales by $17.4 million, or 20 percent. In addition, foreign exchange had an unfavorable impact on sales of $2.8 million, or 3 percent. This segment continues to experience pressure due to weak market conditions in the oil and gas sector. Operating income, excluding special items, was $2.6 million and 6.4 percent of sales. Reported operating losses were $7.9 million due to restructuring costs associated with exiting the Coiled Tubing and other domestic on-shore service lines.
"The acquisition of AMCOL has been highly accretive, and our long-term growth initiatives of geographic expansion and new product innovation remain on track," said Mr. Muscari. "MTI's business fundamentals remain strong -- especially in the minerals-based businesses -- and we will continue to take the necessary actions needed to maximize profitability in our service-related businesses under these very challenging market conditions."
Minerals Technologies will sponsor a conference call tomorrow, October 23, 2015 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 2014 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.
Press release: http://phx.corporate-ir.net/phoenix.zhtml?c=82665&p=irol-newsArticle&ID=2100543
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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: Earnings
Source: Minerals Technologies Inc.
https://www.acnnewswire.com
From the Asia Corporate News Network
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