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[July 2009]
Minerals Technologies Announces Restructuring of Refractories Segment
Minerals Technologies Inc (New York, USA) has announced a restructuring programme that will focus on its Refractories business but also includes other select operations. As a result, the company will curtail significant losses in the business segment most deeply affected by the ongoing worldwide economic recession and improve near-term performance.
This restructuring programme reflects the company’s ongoing strategy to be optimally positioned for profitability in changing economic conditions. The company will take special charges of US$55 million in the second quarter, the majority of which relate to the Refractories business, which has been hard hit by the downturn in the worldwide steel industry, resulting in a loss of US$2.18 per share for the second quarter. Excluding these special items, diluted earnings per share were US$0.15 per share.
"The downturn in the worldwide steel industry, which has resulted in nearly a 50% reduction in demand in the United States, our largest market, has had a severe impact on our Refractories operations,” said Joseph Muscari, Chairman and CEO. "We will consolidate operations and reduce our workforce in the Refractories business to meet this reduction in demand. We have also, however, taken restructuring charges in our other businesses and support functions, which will allow us to operate more effectively at these lower levels of demand and will position Minerals Technologies to achieve greater profitability as the economic environment improves.”
The major components of the restructuring programme include consolidation of operations, rationalisation of some product lines and streamlining management structures for a more cost effective business model.
In the Refractories segment, the company will consolidate North American refractory operations in Old Bridge, New Jersey, into Bryan, Ohio, and Baton Rouge, Louisiana, improving manufacturing efficiencies and reducing transportation costs. The company will also rationalise its North American specialty shapes product line and European refractory operations. In Asia, Minerals Technologies will consolidate refractory operations and actively seek a regional alliance to aid in the marketing of its high value products there as a result of difficulties penetrating that market.
www.mineralstech.com
ENDS