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AMCOL International Corporation (NYSE: ACO) Reports Third

AMCOL International Corporation (NYSE: ACO) Reports Third Quarter Results  HOFFMAN ESTATES, IL -- (Marketwire) -- 10/26/12 --  For the third quarter of 2012, AMCOL International Corporation (NYSE: ACO) generated diluted earnings attributable to its shareholders from continuing operations of $0.58 per share versus $0.66 per share in the prior year's quarter, which included a $0.07 per share benefit from the gain on the sale of our Belgian joint venture investment and a $0.03 per share benefit from the favorable settlement of tax audits.   Net sales increased 2.1% to $253.3 million for the 2012 third quarter as compared to $248.1 million for the 2011 period. Excluding the effects of foreign currency exchange rate fluctuations, net sales would have increased 4.7%. Our results were negatively impacted by the performance of our lining technologies product line, which continues to face increased competition in a declining market. We are addressing these challenges by developing new products and targeting new markets.  Gross profit decreased 1.7% in the 2012 third quarter, and gross profit margin decreased 110 basis points to 27.4%. Selling, general and administrative expenses decreased 5.0% to $41.8 million. Operating profit increased 3.8% to $27.6 million, and operating profit margins remained relatively constant at approximately 10.9%. Our effective tax rate for the 2012 third quarter was 29.5% compared to 22.5% in the prior year period. Excluding the favorable resolution of tax audits, the effective tax rate in the third quarter of 2011, would have been 26.7%. In addition as previously mentioned, income from joint ventures and affiliates decreased $1.9 million in the current year period as the prior year period included a $2.1 million, or $0.07 per share, gain from the sale of a joint venture investment in Belgium.  "As the year has progressed, we have seen continued economic weakening and uncertainty impacting end markets in a number of sectors -- especially those related to certain construction and consumer products as customers have delayed projects and reduced orders," said AMCOL President and CEO Ryan McKendrick.   "In Minerals & Materials, we saw continued strength in the domestic metalcasting business, but we experienced a 1.1% decline in segment sales resulting partially from lower demand for drilling additives and pet products. Our manufacturing facilities reacted quickly to the reductions and -- as a result, maintained gross margin above 25%," McKendrick continued.  "Our Environmental segment experienced a 15.0% decline in sales -- primarily due to market conditions that have negatively impacted lining technologies demand and our decision to significantly reduce our contracting services. We continue to focus on growing sales in our building materials and construction related drilling product lines which now account for 50% of segment sales. As a result, gross margin for the segment improved to 32.6%," McKendrick added.  McKendrick continued, "In Oilfield Services, we achieved record revenues and operating profit with the strengthening of our market position in key international markets and in service lines where we anticipate growth in the coming years. Pricing pressures and cost increases in our coil tubing services adversely affected our results along with activity disruptions caused by Hurricane Isaac."  "We are confident in the long term fundamentals of our business, and our growth strategy remains unchanged. We continue building the framework to maintain our leadership position in key product lines by expanding our global presence and developing a balanced participation in growing market sectors such as energy, industrial, consumer, and infrastructure," he concluded.  STATEMENT OF OPERATIONS HIGHLIGHTS:  The statement of operations highlights are supported by the quarterly segment results schedules included in this press release. The following comments relate to our results for the current quarter as compared to the same quarter in the prior year, unless otherwise noted.   Net sales: Net sales increased $5.2 million or 2.1%.  Minerals & Materials: Increased selling prices were overshadowed by lower volumes and unfavorable foreign currency exchange rate movements, leading to the overall decrease in sales. Volumes have decreased in our pet products and drilling additive products (within basic minerals). In pet products, we are seeing lower overall market demand. Our drilling fluid additives have suffered due to inventory destocking by customers. Although our metalcasting product line sales increased, we are seeing a decrease in demand in China due to decreased infrastructure related castings.  Environmental: Approximately 37% of the $10.7 million decrease in sales resulted from unfavorable foreign currency exchange rate movements, almost entirely in our European subsidiaries. The majority of the remaining decrease also occurred in these European subsidiaries as a result of our decision to downsize our contracting services. Our lining technologies product line also continues to experience weakened demand due to a declining market and increased competition. These reductions have overshadowed increased sales of our drilling products.  Oilfield Services: This segment has experienced strong growth due to increases in demand and our service capacity as well as growth in our international operations. Our international operations generated 69.5% of the increase in sales, the majority of which is related to our water filtration business. Domestically, our revenues increased in our water filtration, well testing and pipeline services.  Transportation: Revenues decreased primarily due to lower shipment volumes. Revenues continue to suffer from decreased supply of carriers and owner operators who are being recruited to oil and gas opportunities within the Bakken shale region.   Gross profit: Gross profit decreased by $1.2 million, or 1.7%, to $69.4 million. Gross margin decreased 110 basis points to 27.4%.  Minerals & Materials:  Gross profit and gross profit margin in this segment was comparable to the prior year quarter.  Environmental: Gross profit decreased due to less sales, however, gross profit margin increased 150 basis points due to better cost management, a beneficial change in product mix, and increased selling prices in our drilling and building materials product lines.  Oilfield Services: Nearly all of the improvement in this segment's gross profits occurred in our international operations where performance has improved due to new management, increasing demand for our services, and greater success at winning large contracts. Domestically, revenues were stagnant in our coil tubing services, where gross profit margins also suffered due to pricing pressures and cost increases.  Selling, general and administrative expenses (SG&A): SG&A expenses decreased $2.2 million, or 5.0%, due largely to decreases in our Environmental and Corporate segments. Our Environmental segment benefitted equally from favorable foreign currency exchange rate movements and decreased bad debt expenses. Our Corporate segment's expenses decreased due to decreased employee benefit expenses. Our Minerals & Materials segment's expenses increased 10% due to a variety of factors, the largest of which is increased headcounts and compensation.  Income tax expense: The prior year period includes favorable settlements on income tax audits which depressed the effective income tax rate in that period by 420 basis points. The current period's pre-tax income is more concentrated in higher tax rate jurisdictions; the current period's effective tax rate is 29.5%.   FINANCIAL POSITION AND CASH FLOW HIGHLIGHTS:   The paragraphs in this section compare our balance sheet as of September 30, 2012 to that as of December 31, 2011. We also make comparisons between cash flows for the nine months ended September 30, 2012 as compared to the nine months ended September 30, 2011.  Cash flow generated from operating activities increased $55.9 million largely due to improved management of non-cash working capital and greater net income. Our accounts receivable and inventory balances have increased at a slower rate as compared to the prior year period. We also paid down $16.8 million of long-term debt during the current period as opposed to borrowing $14.9 million in the prior year period. Long-term debt as a percentage of total capitalization decreased 460 basis points to 35.1%.  Capital expenditures were $54.2 million as compared to $43.8 million in the prior year period. Expenditures associated with our start-up chromite operations were $7.1 million and $5.9 million in the 2012 and 2011 periods, respectively. In the current year, the majority of our capital spending occurred in our Oilfield Services and Minerals & Materials segments.  Dividends for 2012 remained fairly constant between the periods. However, our dividend rate increased in the third quarter as compared to the second quarter of 2012 by $0.02 to $0.20 per share.  This release should be read in conjunction with the attached unaudited, condensed, consolidated financial statements. It contains certain forward-looking statements regarding AMCOL's expected performance for future periods and actual results for such periods might materially differ. Such forward-looking statements are subject to uncertainties, which include, but are not limited to, actual growth in AMCOL's various markets, utilization of AMCOL's plants, currency exchange rates, currency devaluation, delays in development, production and marketing of new products, integration of acquired businesses, and other factors detailed from time to time in AMCOL's annual report and other reports filed with the Securities and Exchange Commission. AMCOL undertakes no duty to update any forward-looking statement to conform the statement to actual results or changes in AMCOL's expectations.   AMCOL International, headquartered in Hoffman Estates, IL, develops and markets a wide range of mineral and technology based products and services for use in various industrial, environmental and consumer applications. AMCOL is the parent company of American Colloid Company, CETCO (Colloid Environmental Technologies Company), CETCO Oilfield Services Company and the transportation operations, Ameri-co Carriers, Inc. and Ameri-co Logistics, Inc. AMCOL's common stock is traded on the New York Stock Exchange under the symbol ACO. AMCOL's web address is www.amcol.com. AMCOL's quarterly quarter conference call will be available live today at 11 a.m. ET on the AMCOL website via webcast or by dialing 1-877-240-9772.  Financial tables follow.                            AMCOL INTERNATIONAL CORPORATION                                      CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS                                                (unaudited)                                                      (In millions, except per share data)                                                                                                                                     Nine Months Ended    Three Months Ended                                        September 30,         September 30,                                      --------------------  --------------------                                      2012       2011       2012       2011                                     ---------  ---------  ---------  ---------                                                                               Continuing Operations                                                        Net sales                        $   746.3  $   709.8  $   253.3  $   248.1  Cost of sales                        537.7      518.8      183.9      177.5                                   ---------  ---------  ---------  ---------    Gross profit                       208.6      191.0       69.4       70.6  Selling, general, and                                                         administrative expenses             128.7      124.1       41.8       44.0                                   ---------  ---------  ---------  ---------    Operating profit                    79.9       66.9       27.6       26.6                                   ---------  ---------  ---------  ---------  Other income (expense):                                                        Interest expense, net               (7.9)      (8.1)      (2.5)      (2.8)   Other, net                          (2.7)      (0.1)         -       (0.2)                                  ---------  ---------  ---------  ---------                                       (10.6)      (8.2)      (2.5)      (3.0)                                  ---------  ---------  ---------  ---------    Income before income taxes and                                                income (loss) from affiliates                                                and joint ventures                 69.3       58.7       25.1       23.6  Income tax expense                    19.3       14.9        7.4        5.3                                   ---------  ---------  ---------  ---------    Income before income (loss)                                                   from affiliates and joint                                                    ventures                           50.0       43.8       17.7       18.3                                                                               Income (loss) from affiliates                                                 and joint ventures                    3.4        3.9        1.1        3.0                                                                                                                ---------  ---------  ---------  ---------      Net income (loss) from                                                        continuing operations            53.4       47.7       18.8       21.3                                   ---------  ---------  ---------  ---------                                                                               Discontinued Operations                                                      Income (loss) on discontinued                                                 operations                              -       (1.2)         -       (1.3)                                                                                                               ---------  ---------  ---------  ---------    Net income (loss)                   53.4       46.5       18.8       20.0                                   ---------  ---------  ---------  ---------                                                                               Net income (loss) attributable                                                to noncontrolling interests          (0.2)      (0.1)         -       (0.1)                                                                                                                ---------  ---------  ---------  ---------  Net income (loss) attributable                                                to AMCOL shareholders           $    53.6  $    46.6  $    18.8  $    20.1                                   =========  =========  =========  =========                                                                               Weighted average common shares                                                outstanding                          32.0       31.7       32.1       31.8                                                                               Weighted average common and                                                   common equivalent shares                                                     outstanding                          32.3       32.1       32.5       32.2                                                                               Earnings per share attributable                                               to AMCOL shareholders                                                                                                                                    Basic earnings (loss) per share:                                               Continuing operations          $    1.67  $    1.51  $    0.59  $    0.67    Discontinued operations                -      (0.04)         -      (0.04)                                                                                                               ---------  ---------  ---------  ---------    Net income                     $    1.67  $    1.47  $    0.59  $    0.63                                   =========  =========  =========  =========                                                                               Diluted earnings (loss) per                                                   share:                                                                        Continuing operations          $    1.66  $    1.49  $    0.58  $    0.66    Discontinued operations                -      (0.04)         -      (0.04)                                                                                                               ---------  ---------  ---------  ---------    Net income                     $    1.66  $    1.45  $    0.58  $    0.62                                   =========  =========  =========  =========                                                                               Dividends declared per share     $    0.56  $    0.54  $    0.20  $    0.18                                                                                                                                                                                     AMCOL INTERNATIONAL CORPORATION                                           CONDENSED CONSOLIDATED BALANCE SHEETS                                                    (In millions)                                                                                                                                                             September 30,   December 31,  ASSETS                                              2012           2011                                                      (unaudited)         *                                                       -------------  -------------    Current assets:                                                                Cash and equivalents                       $        17.7  $        23.7      Accounts receivable, net                           219.9          204.8      Inventories                                        160.8          144.8      Prepaid expenses                                    19.4           15.7      Deferred income taxes                                6.8            5.9      Income tax receivable                               15.1            6.9      Other                                                2.6            6.1                                                 -------------  -------------                                                                                       Total current assets                           442.3          407.9                                                 -------------  -------------                                                                                 Noncurrent assets:                                                             Property, plant, equipment, mineral rights                                    and reserves:                                                                 Land                                              12.9           13.9        Mineral rights                                    49.9           52.5        Depreciable assets                               535.6          482.6                                                 -------------  -------------                                                                                                                                      598.4          549.0        Less: accumulated depreciation and                                            depletion                                       303.4          275.5                                                 -------------  -------------                                                                                                                                      295.0          273.5                                                 -------------  -------------                                                                                   Goodwill                                            69.9           69.5      Intangible assets, net                              34.8           36.6      Investments in and advances to affiliates                                     and joint ventures                                 28.0           26.4      Available-for-sale securities                        7.9            3.8      Deferred income taxes                                9.3            8.5      Other assets                                        25.6           24.4                                                 -------------  -------------                                                                                       Total noncurrent assets                        470.5          442.7                                                 -------------  -------------    Total Assets                                 $       912.8  $       850.6                                                 =============  =============                                                                                                                                                            LIABILITIES AND SHAREHOLDERS' EQUITY                                                                                                                        Current liabilities:                                                           Accounts payable                           $        52.7  $        56.5      Accrued income taxes                                18.2            2.4      Accrued liabilities                                 66.9           57.9                                                 -------------  -------------                                                                                       Total current liabilities                      137.8          116.8                                                 -------------  -------------                                                                                 Noncurrent liabilities:                                                        Long-term debt                                     244.1          260.7      Pension liabilities                                 35.3           34.8      Deferred compensation                               10.3            8.9      Deferred income taxes                               13.0           13.5      Other long-term liabilities                         21.7           19.2                                                 ------- ------  -------------                                                                                       Total noncurrent liabilities                   324.4          337.1                                                 -------------  -------------                                                                                 Shareholders' Equity:                                                          Common stock                                         0.3            0.3      Additional paid in capital                         100.8           94.3      Retained earnings                                  352.1          316.4      Accumulated other comprehensive income              (5.7)         (15.0)     Less: Treasury stock                                (0.7)          (3.4)                                                -------------  -------------                                                                                 Total AMCOL shareholders' equity                     446.8          392.6                                                 -------------  -------------                                                                                   Noncontrolling interest                              3.8            4.1                                                 -------------  -------------                                                                                       Total equity                                   450.6          396.7                                                 -------------  -------------                                                                                 Total Liabilities and Shareholders' Equity   $       912.8  $       850.6                                                 =============  =============                                                                               * Condensed from audited financial statements.                                                                                                                                                                                                               AMCOL INTERNATIONAL CORPORATION                                CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)                                         (In millions)                                                                                                                                                                     Nine Months Ended                                                              September 30,                                                          ------------------------                                                         2012         2011                                                        -----------  -----------  Cash flow from operating activities:                                           Net income                                       $      53.4  $      46.5    Adjustments to reconcile net income to net cash                              provided by (used in) operating activities:                                    Depreciation, depletion, and amortization             33.3         31.2      Other non-cash charges                                 5.3          4.1      Changes in assets and liabilities, net of                                     effects of acquisitions:                                                      Decrease (increase) in current assets              (43.1)       (90.3)       Decrease (increase) in noncurrent assets            (0.5)         2.5        Increase (decrease) in current liabilities          19.0         24.2        Increase (decrease) in noncurrent                                             liabilities                                         5.2         (1.5)                                                    -----------  -----------          Net cash provided by (used in) operating                                      activities                                       72.6         16.7                                                     -----------  -----------                                                                               Cash flow from investing activities:                                           Capital expenditures                                   (54.2)       (43.8)   Investments in and advances to affiliates and                                 joint ventures                                          0.2         (0.7)   Proceeds from sale of land and depreciable                                    assets                                                  1.5          1.6    Other                                                    1.9          2.5                                                     -----------  -----------          Net cash (used in) investing activities          (50.6)       (40.4)                                                    -----------  -----------  Cash flow from financing activities:                                           Net change in outstanding debt                         (16.8)        14.9    Proceeds from exercise of stock awards                   4.9          6.9    Dividends                                              (17.2)       (17.1)   Excess tax benefits from stock-based                                          compensation                                            0.2          0.7                                                     -----------  -----------          Net cash provided by (used in) financing                                      activities                                      (28.9)         5.4                                                     -----------  -----------  Effect of foreign currency rate changes on cash            0.9          0.8                                                     -----------  -----------  Net increase (decrease) in cash and cash                                      equivalents                                              (6.0)       (17.5)                                                    -----------  -----------  Cash and cash equivalents at beginning of period          23.7         26.8                                                     -----------  -----------  Cash and cash equivalents at end of period         $      17.7  $       9.3                                                     ===========  ===========                                                                                                                                                                                  AMCOL INTERNATIONAL CORPORATION                                                SEGMENT RESULTS (unaudited)                                                        QUARTER-TO-DATE                                                                                                                                              Three Months Ended September 30,                                  -----------------------------------------------------       Minerals and                                                                  Materials             2012              2011          2012 vs. 2011                          ----------------  ----------------  -----------------                                        (Dollars in Millions)                                        -----------------------------------------------------                                                                               Net sales             $  121.0   100.0% $  122.3   100.0% $   (1.3)    -1.1% Cost of sales             89.8    74.2%     90.7    74.2%     (0.9)    -1.0%                       -------- -------  -------- -------  --------             Gross profit            31.2    25.8%     31.6    25.8%     (0.4)    -1.3% Selling, general and                                                          administrative                                                               expenses                 13.2    10.9%     12.0     9.8%      1.2     10.0%                       -------- -------  -------- -------   --------             Operating profit        18.0    14.9%     19.6    16.0%     (1.6)    -8.2%                                                                                                                                                                                            Three Months Ended September 30,                                  -----------------------------------------------------      Environmental           2012              2011          2012 vs. 2011                          ----------------  ----------------  -----------------                                        (Dollars in Millions)                                        -----------------------------------------------------                                                                               Net sales             $   60.4   100.0% $   71.1   100.0% $  (10.7)   -15.0% Cost of sales             40.7    67.4%     49.0    68.9%     (8.3)   -16.9%                       -------- -------  -------- -------  --------             Gross profit            19.7    32.6%     22.1    31.1%     (2.4)   -10.9% Selling, general and                                                          administrative                                                               expenses                 13.1    21.7%     14.3    20.1%     (1.2)    -8.4%                       -------- -------  -------- -------  --------             Operating profit         6.6    10.9%      7.8    11.0%     (1.2)   -15.4%                                                                                                                                                              Oilfield Services             Three Months Ended September 30,                                   ----------------------------------------------------                               2012              2011          2012 vs. 2011                          ----------------  ----------------  ----------------                                         (Dollars in Millions)                                        ----------------------------------------------------                                                                               Net sales              $   69.1   100.0% $   50.2   100.0% $   18.9    37.6% Cost of sales              51.4    74.4%     34.9    69.5%     16.5    47.3%                        -------- -------  -------- -------  --------            Gross profit             17.7    25.6%     15.3    30.5%      2.4    15.7% Selling, general and                                                          administrative                                                               expenses                   9.8    14.2%      9.6    19.1%      0.2     2.1%                        -------- -------  -------- -------  --------            Operating profit          7.9    11.4%      5.7    11.4%      2.2    38.6%                                                                                                                                                               Transportation               Three Months Ended September 30,                                  -----------------------------------------------------                              2012              2011          2012 vs. 2011                          ----------------  ----------------  -----------------                                        (Dollars in Millions)                                        -----------------------------------------------------                                                                               Net sales             $   10.7   100.0% $   14.8   100.0% $   (4.1)   -27.7% Cost of sales              9.6    89.7%     13.1    88.5%     (3.5)   -26.7%                       -------- -------  -------- -------  --------             Gross profit             1.1    10.3%      1.7    11.5%     (0.6)   -35.3% Selling, general and                                                          administrative                                                               expenses                  0.9     8.4%      1.0     6.8%     (0.1)   -10.0%                       -------- -------  -------- -------  --------             Operating profit         0.2     1.9%      0.7     4.7%     (0.5)   -71.4%                                                                                                                                                                         Corporate                  Three Months Ended September 30,                                          -------------------------------------                                          2012      2011      2012 vs. 2011                                          --------  --------  -----------------                                                (Dollars in Millions)                                                -------------------------------------                                                                               Intersegment shipping sales           $   (7.9) $  (10.3) $    2.4           Intersegment shipping costs               (7.6)    (10.2)      2.6                                                 --------  --------  --------             Gross profit (loss)                     (0.3)     (0.1)     (0.2)          Selling, general and administrative                                           expenses                                  4.8       7.1      (2.3)   -32.4%                                       --------  --------  --------           Operating loss                            (5.1)     (7.2)      2.1    -29.2%                                                                                                                                                                                                                                                              AMCOL INTERNATIONAL CORPORATION                                                SEGMENT RESULTS (unaudited)                                                          YEAR-TO-DATE                                                                                                                   Minerals and                                                                   Materials                 Nine Months Ended September 30,                                   -----------------------------------------------------                              2012              2011          2012 vs. 2011                          ----------------  ----------------  -----------------                                        (Dollars in Millions)                                        -----------------------------------------------------                                                                               Net sales             $  377.3   100.0% $  356.4   100.0% $   20.9      5.9% Cost of sales            277.1    73.4%    270.6    75.9%      6.5      2.4%                       -------- -------  -------- -------  --------             Gross profit           100.2    26.6%     85.8    24.1%     14.4     16.8% Selling, general and                                                          administrative                                                               expenses                 38.2    10.1%     36.7    10.3%      1.5      4.1%                       -------- -------  -------- -------  --------             Operating profit        62.0    16.5%     49.1    13.8%     12.9     26.3%                                                                                                                                                                                             Nine Months Ended September 30,                                  -----------------------------------------------------       Environmental           2012              2011          2012 vs. 2011                         ----------------  ----------------  -----------------                                         (Dollars in Millions)                                       -----------------------------------------------------                                                                                Net sales             $  172.8   100.0% $  197.6   100.0% $  (24.8)   -12.6% Cost of sales            120.0    69.4%    137.4    69.5%    (17.4)   -12.7%                       -------- -------  -------- -------  --------             Gross profit            52.8    30.6%     60.2    30.5%     (7.4)   -12.3% Selling, general and                                                          administrative                                                               expenses                 39.2    22.7%     42.3    21.4%     (3.1)    -7.3%                       -------- -------  -------- -------  --------             Operating profit        13.6     7.9%     17.9     9.1%     (4.3)   -24.0%                                                                                                                                                                                             Nine Months Ended September 30,                                  -----------------------------------------------------     Oilfield Services         2012              2011          2012 vs. 2011                         ----------------  ----------------  -----------------                                         (Dollars in Millions)                                       -----------------------------------------------------                                                                               Net sales             $  185.5   100.0% $  140.9   100.0% $   44.6     31.7% Cost of sales            133.2    71.8%    100.3    71.2%     32.9     32.8%                       -------- -------  -------- -------  --------             Gross profit            52.3    28.2%     40.6    28.8%     11.7     28.8% Selling, general and                                                          administrative                                                               expenses                 31.9    17.2%     25.4    18.0%      6.5     25.6%                       -------- -------  -------- -------  --------             Operating profit        20.4    11.0%     15.2    10.8%      5.2     34.2%                                                                                                                                                                                             Nine Months Ended September 30,                                  -----------------------------------------------------      Transportation           2012              2011          2012 vs. 2011                         ----------------  ----------------  -----------------                                         (Dollars in Millions)                                       -----------------------------------------------------                                                                               Net sales             $   33.5   100.0% $   42.3   100.0% $   (8.8)   -20.8% Cost of sales             30.0    89.6%     37.5    88.7%     (7.5)   -20.0%                       -------- -------  -------- -------  --------             Gross profit             3.5    10.4%      4.8    11.3%     (1.3)   -27.1% Selling, general and                                                          administrative                                                               expenses                  2.8     8.4%      2.9     6.9%     (0.1)    -3.4%                       -------- -------  -------- -------  --------             Operating profit         0.7     2.0%      1.9     4.4%     (1.2)   -63.2%                                                                                                                                                                                                    Nine Months Ended September 30,                                           -------------------------------------                Corporate                 2012      2011      2012 vs. 2011                                          --------  --------  -----------------                                                (Dollars in Millions)                                                -------------------------------------                                                                               Intersegment sales                    $  (22.8) $  (27.4) $    4.6           Intersegment cost of sales               (22.6)    (27.0)      4.4                                                 --------  --------  --------             Gross profit (loss)                     (0.2)     (0.4)      0.2           Selling, general and administrative                                           expenses                                 16.6      16.8      (0.2)    -1.2%                                       --------  --------  --------             Operating loss                         (16.8)    (17.2)      0.4     -2.3%                                                                                                                                                                                                                                                             AMCOL INTERNATIONAL CORPORATION                                           SUPPLEMENTARY INFORMATION (unaudited)                                                   QUARTER-TO-DATE                                                                                                              Composition of Sales by Geographic                                                          Region                Three Months Ended September 30, 2012                                      ----------------------------------------                                                                Asia                                              Americas      EMEA       Pacific   Total                                     --------  ------------  ---------  -----                                                                               Minerals & Materials                   28.6%          8.6%      10.0%  47.2% Environmental                          10.9%         10.7%       2.1%  23.7% Oilfield Services                      19.5%          2.3%       5.4%  27.2% Transportation & intersegment                                                 shipping                               1.9%          0.0%       0.0%   1.9%                                    --------  ------------  ---------  -----                                                                               Total - current year's period          60.9%         21.6%      17.5% 100.0%                                    ========  ============  =========  =====  Total from prior year's comparable                                            period                                62.3%         24.2%      13.5% 100.0%                                                                                                                                                                                                                                          Percentage of Revenue Growth by                                                         Component               Three Months Ended September 30, 2012                                                         vs.                                                         Three Months Ended September 30, 2011                                      ----------------------------------------                                       Base                   Foreign                                             Business  Acquisitions   Exchange  Total                                     --------  ------------  ---------  -----                                                                               Minerals & Materials                    0.2%          0.0%      -0.7%  -0.5% Environmental                          -2.7%          0.0%      -1.6%  -4.3% Oilfield Services                       7.9%          0.0%      -0.3%   7.6% Transportation & intersegment                                                 shipping                              -0.7%          0.0%       0.0%  -0.7%                                    --------  ------------  - --------  -----                                                                               Total                                   4.7%          0.0%      -2.6%   2.1%                                    ========  ============  =========  =====  % of growth                           223.8%          0.0%    -123.8% 100.0%                                                                                                                                                                                                                 Three Months Ended         Minerals and Materials Product Line Sales           September 30,                                                          -------------------------                                                                         %                                                         2012     2011    change                                                    -------- -------- -------                                                      (Dollars in Millions)                                                      -------------------------                                                                               Metalcasting                                      $   67.8 $   66.0     2.7% Specialty materials                                   22.7     25.5   -11.0% Basic minerals                                        15.2     14.5     4.8% Pet products                                          11.9     14.1   -15.6% Other product lines                                    3.4      2.2    54.5%                                                   -------- --------                                                                                         Total                                              121.0    122.3    -1.1%                                                   ======== ========                                                                                                                                                                                                                          Three Months Ended              Environmental Product Line Sales                September 30,                                                         -------------------------                                                                         %                                                          2012     2011   change                                                    -------- -------- -------                                                       (Dollars in Millions)                                                     -------------------------                                                                               Lining technologies                               $   25.1 $   29.6   -15.2% Building materials                                    20.3     21.4    -5.1% Drilling products                                      9.9      8.6    15.1% Contracting services                                   5.1     11.5   -55.7%                                                   -------- --------                                                                                         Total                                               60.4     71.1   -15.0%                                                   ======== ========                                                                                                                                                                                         AMCOL INTERNATIONAL CORPORATION                                           SUPPLEMENTARY INFORMATION (unaudited)                                                    YEAR-TO-DATE                                                                                                                 Composition of Sales by Geographic                                                         Region                 Nine Months Ended September 30, 2012                                       ---------------------------------------                                                                Asia                                               Americas      EMEA       Pacific  Total                                      --------  ------------  --------  -----                                                                               Minerals and materials                  31.0%          8.5%     10.3%  49.8% Environmental                           11.3%          9.5%      2.2%  23.0% Oilfield services                       19.7%          1.7%      3.5%  24.9% Transportation & intersegment                                                 shipping                                2.3%          0.0%      0.0%   2.3%                                     --------  ------------  --------  -----                                                                               Total - current year's period           64.3%         19.7%     16.0% 100.0%                                     ========  ============  ========  =====  Total from prior year's comparable                                            period                                 62.4%         23.9%     13.7% 100.0%                                                                                                                                                             Percentage of Revenue Growth by                                                          Component               Nine Months Ended September 30, 2012                                                         vs.                                                          Nine Months Ended September 30, 2011                                       ---------------------------------------                                                               Foreign                                              Organic  Acquisitions  Exchange  Total                                      --------  ------------  --------  -----                                                                               Minerals and materials                   3.6%          0.0%     -0.7%   2.9% Environmental                           -2.0%          0.0%     -1.5%  -3.5% Oilfield services                        6.5%          0.0%     -0.2%   6.3% Transportation & intersegment                                                 shipping                               -0.6%          0.0%      0.0%  -0.6%                                     --------  ------------  --------  -----                                                                               Total                                    7.5%          0.0%     -2.4%   5.1%                                     ========  ============  ========  =====  % of growth                            147.1%          0.0%    -47.1% 100.0%                                                                                                                                                                                                                                                                                              Nine Months Ended          Minerals and Materials Product Line Sales           September 30,                                                          -------------------------                                                                         %                                                         2012     2011    change                                                    -------- -------- -------                                                      (Dollars in Millions)                                                      -------------------------                                                                               Metalcasting                                      $  201.6 $  187.0     7.8% Specialty materials                                   75.7     78.7    -3.8% Basic minerals                                        52.2     41.3    26.4% Pet products                                          40.0     42.2    -5.2% Other product lines                                    7.8       7.2     8.3%                                                   -------- --------                                                                                         Total                                              377.3    356.4     5.9%                                                   ======== ========                                                                                                                                                                                                                           Nine Months Ended              Environmental Product Line Sales                September 30,                                                         -------------------------                                                                         %                                                          2012     2011   change                                                    -------- -------- -------                                                       (Dollars in Millions)                                                     -------------------------                                                                               Lining technologies                               $   71.9 $   84.5   -14.9% Building materials                                    58.2     60.6    -4.0% Drilling products                                     29.0     23.3    24.5% Contracting services                                  13.7     29.2   -53.1%                                                   -------- --------                                                                                         Total                                              172.8    197.6   -12.6%                                                   ======== ========              For further information, contact: Don Pearson Senior Vice President & Chief Financial Officer 847.851.1500