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[Nov 2006]
Minerals Technologies Reports Third Quarter Financials
Minerals Technologies Inc (New York, USA)) has reported third quarter net income of US$14.1 million, a 15% increase from the US$12.2 million reported in the third quarter of 2005. Diluted earnings per common share increased 20% to US$0.72 from US$0.60 in the same period last year.
"We saw improved financial performance in the third quarter as a result of increased steel production in North America and Europe, which provided a significant benefit to our Refractories segment, and from our two new large satellite PCC plants in China, which had a significant improvement in financial performance as compared with the prior year," said Paul Saueracker, Chairman, President and CEO. "We also experienced strong demand for our PCC used in uncoated free-sheet paper in North America and volume growth from our satellite PCC expansions in Europe, which together more than offset volume losses from paper mill and paper machine shutdowns during the quarter. We continue, however, to be challenged by unrecovered higher raw material and energy costs in the Specialty Minerals segment, and ramp-up and market development expenses related to our new
Synsil(R) Products plant in South Carolina and our Refractories facility in China."World-wide sales in the quarter were up 7% to US$265.3 million from US$246.8 million in the previous year. Foreign exchange had a favourable impact on sales of 1 percentage point of growth. Income from operations increased 28% to US$24.4 million from US$19.1 million in the third quarter of 2005.
Net income for the first nine months decreased 3% to US$39.4 million this year from US$40.6 million in the prior year. Diluted earnings per share for the nine months increased 1% to US$1.98 from US$1.96 for the same period in 2005.
World-wide sales for the first nine months of 2006 increased 7% to US$797.9 million from US$742.4 million in the same period last year. Foreign exchange had an unfavourable impact on sales of less than 1 percentage point of growth. Operating income for the nine months was US$64.3 million, which was slightly higher than the operating income for the first nine months of 2005.
"As previously announced," said Mr Saueracker, "on October 2, we completed the acquisition of ASMAS, an Istanbul-based Turkish producer of refractories, which will provide an excellent platform for future growth in the Refractories segment."
Mr Saueracker concluded: "Execution of our key strategies for growth, higher steel production and increased demand for our PCC for uncoated free sheet in the paper industry contributed to our improved financial results for the quarter. Heading into the fourth quarter, however, we are seeing in North America a weakening in both steel production and in the residential construction industry, and we will continue to have development costs associated with the commercialization efforts for Synsil(R) Products, and the ramp-up our new refractory manufacturing facility in China, all of which would likely have a dampening effect on our operational performance."
www.mineralstech.com
ENDS