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[January 2007]
AMCOL Reports 44% Increase in Fourth Quarter Diluted Earnings Per Share
AMCOL International Corp (Arlington Heights, IL, USA) has reported 2006 fourth quarter income from continuing operations of US$12 million, compared with US$8.4 million in the same prior-year period. The current year period benefited from a lower effective income tax rate.Net sales from continuing operations rose 16% to US$155.9 million for the quarter ended 31 December 2006, compared with US$134.6 million for the 2005 period. Acquisitions and favourable foreign currency translation represented approximately US$8 million and US$4.3 million, respectively, of the fourth quarter sales growth. Operating profit from continuing operations improved by 50% to US$14.1 million over the 2005 period. Current period operating profit includes earnings from acquisitions and favourable foreign currency translation of US$1.6 million and US$0.5 million, respectively.
Larry Washow, AMCOL President and CEO, said: "Overall we had another quarter of growth from our traditional operations as well as contributions from recent acquisitions. After considering the effect of an acquisition, our metalcasting sales decreased in the quarter, however, our sales in the Asia-Pacific region continued to expand. Specialty minerals revenues, including our detergent additives product line, also improved. The acquisition in October of additional metalcasting operations in the U.S. will position us well to serve this core market.
"Oilfield Services represented an important part of the improvement. Besides continued growth in our base business, the two acquisitions completed this year have integrated well and expanded the product and service portfolio we can offer to our customers.
"Compared to the strong fourth quarter the Environmental segment had in 2005, the segment again had strong sales, offset by somewhat weaker margins. We have seen an impact on margins primarily from our service related businesses but we are encouraged that the Contracting Services Group was a contributor in the fourth quarter."
The AMCOL subsidiary American Colloid Company is the world's largest producer of smectite clays, specifically, sodium and calcium montmorillonites (bentonites), hectorites and magnesium aluminium silicates. American Colloid Co's Industrial Specialties Group mines and processes smectite clay, both hydro classified and dry processed, for use in ceramics, paints & coatings, wine and juice clarification, printing inks, rubber, asphalt and specialty household and consumer applications.
The most common members of the smectite mineral group are hectorite and montmorillonite. The clay's products are useful in gelling, binding, thickening, stabilising, plasticising, coagulating, emulsifying, absorbing and controlling rheology.
The bentonites and hectorites are used widely in a variety of speciality industrial and consumer formulations. The clays increase viscosity, stabilise emulsions, modify the consistency and feel of products and improve spreadability. These clay products are also excellent suspending and dispersing agents. The clays change the rheological properties of the formulations, provide a smoother texture and offer good application properties due to their thixotropic characteristics.
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ENDS