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[August 2007]
Minerals Technologies Reports Second Quarter Figures
Minerals Technologies Inc (New York, USA) has reported second quarter net income of US$14.4 million, a 14% increase over the US$12.6 million reported in Q2 2006. Diluted earnings per common share were US$0.74, a 17% increase over the US$0.63 reported in Q2 2006.World-wide sales in the quarter increased 5% to US$279.5 million from US$266.4 million in the previous year. Foreign exchange had a favourable impact on sales of approximately US$6.1 million, or 2 percentage points of growth. Income from operations was US$24.3 million, a 16% increase over the US$20.9 million recorded in Q2 2006.
"Our second quarter results showed an improvement in profitability over the prior year, particularly in the PCC and Refractory product lines," said Joseph Muscari, Chairman and CEO. "In addition, we continue to derive benefits from the expense control program we instituted in the first quarter and from foreign exchange”.
Sequentially, sales increased 2% over Q1 2007 and income from operations increased 22%. This was primarily attributable to improved shipment levels in the Processed Minerals product line and improved conditions in the steel industry, which benefited the Refractory product line.
Sales of Processed Minerals products for the second quarter were US$39.4 million, a 6% decline from the US$41.8 million reported for the same period in 2006. Talc sales declined 4% to US$15.4 million. Ground Calcium Carbonate
(GCC) sales also decreased 4%. The Processed Minerals product line continued to be affected by weakness in the residential and commercial construction markets, as well as the automotive market. Processed Minerals products are used in the building materials, polymers, ceramics, paints and coatings, glass and other manufacturing industries. In addition, SYNSIL® Products sales decreased 36% to US$1.4 million.Second quarter net sales in the Refractories segment, which primarily serves the steel industry, increased 4% to US$90.6 million. Income from operations for the Refractories segment in the second quarter of 2007 increased 12% to US$8.5 million.
Sales of Refractory Products and Systems for steel and other industrial applications increased 11% in the second quarter to US$73.1 million. This increase was attributable to the incremental sales from the recent acquisition in Turkey and to foreign currency. Sales of Metallurgical Products decreased 16% in the second quarter to US$17.5 million. This decrease was primarily attributable to lower volumes in North America and Latin America and lower prices resulting from the reduction in the cost of raw materials that is traditionally passed through to the customers for this product line.
The Refractories segment saw improved profitability during the quarter as a result of a favourable product mix in North American Refractory Products and Systems, partially offset by weakness in Metallurgical Products.
"Although the Refractory segment improved during the quarter, we are now seeing price increases for magnesia, the primary raw material for refractories, which will have an impact for the remainder of the year," said Mr Muscari.
Mr Muscari concluded: "In the five months since joining Minerals Technologies, I have been assessing all aspects of the business through meetings with customers and employees as well as conducting an in-depth strategic review with senior managers. The initial steps we have taken have been to initiate a rigorous monthly Business Performance Review process, establish tighter expense controls, reduction in capital spending and the introduction of a Continuous Improvement process that will be implemented throughout the entire company. This assessment process continues, focusing on the key strategic questions of company direction, structure, business portfolio and technologies. We are working to put MTI on a track of creating value”.
www.mineralstech.com
ENDS