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[November 2008]
Minerals Technologies Reports Third Quarter Earnings
Minerals Technologies Inc (New York, USA) has reported third quarter diluted earnings per common share of US$1.00 compared with a loss of US$5.47 in the third quarter of 2007 when the company announced a major restructuring programme. Earnings per share from continuing operations were US$0.85 in the third quarter and included restructuring charges of US$0.17 per share. Earnings per share from discontinued operations were US$0.15 for the quarter primarily due to a gain on the sale of an idle facility. Excluding special items, earnings were US$1.06 per share in the third quarter as compared with US$0.69 per share in the prior year. Net income for the quarter, excluding special items, increased 50% to US$20.1 million compared with US$13.4 million in the third quarter of 2007.
"The company delivered a solid performance in a difficult market environment. In particular, we achieved a 9.4% annualised rate of Return on Capital for the third quarter," said Joseph Muscari, Chairman and CEO. "Looking at our end markets, we saw continued contraction in the world-wide paper industry and increased weakness in the construction and automotive industries. Our Refractory segment held up well during the quarter and was in line with steel production, which has since, however, declined."
The company's world-wide sales in the third quarter increased 11% to US$294.9 million compared to US$266.5 million in the previous year. This sales growth was primarily due to increased pricing necessitated by higher raw material costs and to foreign exchange. Income from operations, excluding special items, increased 17% in the third quarter to US$28.0 million compared with US$24.0 million in the prior year.
In the segment reports the company confirmed that sales for Refractories segment for the third quarter were US$108.2 million, a 24% increase from US$87.0 million recorded in the third quarter of 2007. Income from operations, excluding special items, in the third quarter of 2008 was US$11.6 million compared with US$5.5 million during the same period last year.
Sequentially, income from operations, excluding special items, increased 20% from the second quarter of 2008.
Sales of refractory products and systems for the steel market and other industrial uses increased 25% in the third quarter to US$86.7 million from US$69.5 million in the same period last year. This increase was attributable to increased selling prices necessitated by significant raw materials cost increases and to the favourable effects of currency. Sales in the metallurgical product line increased 23% to US$21.5 million from US$17.5 million in the third quarter of 2007. This increase was primarily the result of strong steel demand in North America.
The Refractories segment's sales for the first nine months of 2008 were US$315.6 million compared to US$267.2 million in the previous year, an 18% increase. For the nine months, Refractories segment's operating income, excluding special items, was US$30.4 million compared with US$20.7 million in the prior year.
ENDS