Minerals Technologies Inc : Minerals Technologies Inc. Achieves Record Annual Earnings of $2.09 per Share, an 11-Percent

Minerals Technologies Inc : Minerals Technologies Inc. Achieves Record Annual
             Earnings of $2.09 per Share, an 11-Percent Increase

     Company Reported Earnings per Share of $0.50 for the Fourth Quarter
                                  ----------
                   Operating Income Grew 9 Percent for 2012
                                  ----------
2012 Highlights:


· Third consecutive year of record earnings

· Signed two new satellite PCC contracts for China

· Six commercial agreements for FulFill^TM

· Two-for-one stock split; quarterly dividend doubled

· Repurchased $28 million in shares for 2012; $19 million in fourth quarter


NEW YORK, January 31-Minerals Technologies Inc. (NYSE: MTX) today reported
record earnings per share of $2.09 for the full year of 2012 compared with
earnings of $1.89 in the prior year, excluding special items, an increase of
11 percent. Reported net income for the full year was $74.1 million, a
10-percent increase over the $67.5 million recorded in 2011. Reported earnings
in 2011 were $1.86 per share.

Operating income for the full year 2012 grew 9 percent to a record $110.0
million compared to $100.8 million in the prior year, excluding special items.
Operating income, as reported in 2011, was $100.3 million. This increase was
due to a strong operating performance highlighted by a 6-percent company-wide
productivity improvement and 3-percent lower expenses. Operating income
improved despite a 4-percent decrease in worldwide sales due to unfavorable
foreign exchange and weakening market conditions in Europe.

Worldwide sales were $1.01 billion compared with $1.04 billion recorded in
2011. The impact of foreign exchange on sales was $26.5 million, or 3
percentage points. In addition to the impact of foreign exchange, several
paper and steel mill closures in Europe and North America contributed to the
sales decrease, which was offset by increased sales in the Paper PCC product
line. Excluding the effect of foreign currency and the paper and steel mill
closures, sales grew 1 percent.

"This marks the third consecutive year that Minerals Technologies has recorded
the highest annual earnings in its 20-year history," said Joseph C. Muscari,
chairman and chief executive officer. "Our growth strategies of geographic
expansion and new product innovation continued to gain momentum during 2012.
We signed two contracts for new satellite PCC plants in China, began
operations of new satellites in India and Thailand and, in 2013, we will
expand foursatellite plants in the United States. We also succeeded in
gaining further adoption of our FulFill(TM) portfolio of products on a
worldwide basis, signing six more to commercial agreements during 2012, which
brings the total to 10. In 2013, we will continue to advance these strategies
to achieve the company's long-term growth objectives."

Income from operations for the Specialty Minerals segment, which includes the
PCC and Processed Minerals product lines, increased 14 percent to $84.1
million from $73.8 million, excluding special items, in 2011. This increase
was attributable to a strong performance in the Processed Minerals product
line that was a result of productivity improvements, price increases and lower
energy costs. In addition, operating income improved in the Paper PCC product
line due to contributions from the FulFill(TM) technology, new satellite PCC
plants becoming operational, productivity improvements and expense savings.
Full-year worldwide sales for the Specialty Minerals segment decreased 2
percent to $662.2 million from $676.1 million in 2011. Foreign exchange had
an unfavorable impact on sales of $17.3 million, or 3 percentage points.

Worldwide sales of PCC, which is used primarily in the manufacturing processes
of the paper industry, decreased 3 percent to $546.2 million from $560.6
million recorded in the prior year. Processed Minerals products sales
increased slightly to $116.0 million from $115.5 million in 2011.

"In addition to the adoption of the FulFill(TM) E-325 technology by 10 paper
mills around the world, the company's Performance Minerals business, which is
comprised of Processed Minerals and the Specialty PCC product lines, launched
a number of new products in 2012," said Mr. Muscari. "These include two
Optibloc® talc blends, which are new antiblocking products for high-clarity
film and bag applications, and Titanium Dioxide (TiO2) extenders."

The Refractories segment, which primarily serves the steel industry, recorded
operating income of $32.6 million, which was flat with the previous year.
Sales in the Refractories segment decreased 7 percent to $343.4 million from
$368.8 million recorded in 2011. Foreign exchange had an unfavorable impact on
sales of $9.3 million, or 3 percentage points. Refractory products sales
decreased 8 percent to $264.1 million from $287.4 million in the prior year
due primarily to continued weakness in the global steel industry resulting in
the closure of four steel mills worldwide. Metallurgical products sales
decreased 3 percent to $79.3 million from $81.4 million in the prior year due
primarily to weakness in the European steel market.

In 2012, Minteq International, the operating division of Refractories, also
signed an agreement with United Steel Company B.S.C. (SULB) to perform all
refractory maintenance at a greenfield steel mill in Bahrain that started up
in the third quarter of 2012. Minteq, working with other refractory
companies, will be responsible for coordinating refractory maintenance of the
steel furnaces and the other steel production vessels. This agreement is
expected to generate between $25 million and $30 million in revenues over a
three-year period. The Refractory segment also introduced a new, fourth
generation Lacam® laser measurement system for use in the worldwide steel
industry that is 17 times faster than the previous version. This new
technology provides the fastest and most accurate laser scanning for hot
surfaces available today. Also, during the year, the business engineered and
installed its first Scantrol® laser refractory measuring system for basic
oxygen steel-making furnaces at the Nizhny Tagil Metallurgical Plant (NTMK) in
the Sverdlovsk region of Russia. NTMK is one of the largest fully integrated
steel production facilities in Russia.

Fourth Quarter

Minerals Technologies' income from operations for the quarter was $25.7
million, a 2-percent increase over the $25.1 million recorded in the fourth
quarter of 2011. The company's fourth quarter earnings were $0.50 per share,
compared with $0.52 per share, excluding special items, in the fourth quarter
of 2011. Reported earnings in the fourth quarter of 2011 were $0.55 per share.

Cash flow from operations for the quarter was $35 million and the company
repurchased $19 million in shares.

Fourth quarter worldwide sales declined 3 percent to $244.2 million from
$251.7 million in the same period in 2011. Foreign exchange had an unfavorable
impact on sales of $3.1 million, or 1 percentage point.

In the fourth quarter, income from operations for the Specialty Minerals
segment increased 21 percent to $19.6 million from $16.2 million, in the same
period in 2011. This increase was attributable to price increases, improved
productivity, lower energy costs, the impact of new satellite plants coming on
line and the contribution from adoption of the FulFill(TM) technology. Fourth
quarter worldwide sales for the Specialty Minerals segment increased 1 percent
to $160.8 million from $159.9 million in the same quarter of 2011.

Worldwide sales of PCC increased 1 percent to $134.9 million from the $133.1
million recorded in the fourth quarter of 2011. Processed Minerals products
fourth quarter sales decreased 3 percent to $25.9 million from $26.8 million
in the same period of 2011.

The Refractory segment recorded operating income of $7.5 million in the fourth
quarter of 2012 compared with $10.4 million in the prior year, a 28-percent
decrease. This decrease was primarily attributable to the closure of four
steel mills, global weakness in the worldwide steel industry and lower
equipment sales. Fourth quarter sales in the Refractories segment decreased 9
percent to $83.4 million from $91.8 million recorded in the same period in
2011. Refractory products sales declined 11 percent to $63.5 million from
$71.3 million in the prior year. Metallurgical products sales decreased 3
percent to $19.9 million from $20.5 million in the same period in 2011.

"In 2012, we saw our strategies of geographic expansion and new product
development gain momentum. Today, Minerals Technologies is a strong operating
company driven by our focus on productivity and cost reduction through our
Operational Excellence/Lean initiative and employee engagement," said Mr.
Muscari. "Our Refractories and Performance Minerals product lines have shown
significant improvement, and our Paper PCC business continues on a strong
growth track. Looking ahead, we expect to continue to improve our financial
performance through the execution of our key strategic initiatives of new
product development, geographic expansion and Operational Excellence."
                                  ----------
On December 11, 2012, the company effected a two-for-one stock split in the
form of a stock dividend. Accordingly, all share and per share data presented
in this press release reflect the effect of the stock split.
                                  ----------
  Minerals Technologies has scheduled an analyst conference call for Friday,
  February 1, 2013 at 11:00 a.m. to discuss operating results for the fourth
  quarter. The conference call will be broadcast over the company's website,
                            www.mineralstech.com.
                                     ####
                                  ----------
This press release may contain forward-looking statements, which describe or
are based on current expectations; in particular, statements of anticipated
changes in the business environment in which the company operates and in the
company's future operating results. Actual results may differ materially from
these expectations. In addition, any statements that are not historical fact
(including statements containing the words "believes," "plans," "anticipates,"
"expects," "estimates," and similar expressions) should also be considered to
be forward-looking statements. The company undertakes no obligation to
publicly update any forward-looking statement, whether as a result of new
information, future events, or otherwise. Forward-looking statements in this
document should be evaluated together with the many uncertainties that affect
our businesses, particularly those mentioned in the risk factors and other
cautionary statements in our 2011 Annual Report on Form 10-K and in our other
reports filed with the Securities and Exchange Commission.

Contact:
Rick B. Honey
(212) 878-1831
                                     ####


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                              CONSOLIDATED STATEMENTS OF OPERATIONS
                       MINERALS TECHNOLOGIES INC. AND SUBSIDIARY COMPANIES
                              (in thousands, except per share data)
                                           (unaudited)
                                                                             
                    Quarter Ended            % Growth           Year Ended         % Growth
              Dec.     Sept.   Dec. 31,                Dec. 31,    Dec. 31,         
                   31,       30,
              2012     2012     2011    Prior   Prior      2012       2011     Prior  
                                               Qtr.    Year                                Year
                                                                             
Net sales      $ 244,165 $ 250,346 $ 251,742   (2)%    (3)%  $ 1,005,619 $ 1,044,853    (4)% 
                                                                             
Cost of goods   191,069  195,347  199,072   (2)%    (4)%     786,245    832,657    (6)% 
sold
                                                                             
Production       53,096   54,999   52,670   (3)%      1%     219,374    212,196      3% 
margin
                                                                             
Marketing and   22,377   22,046   22,666     2%    (1)%      89,161     92,058    (3)% 
administrative
expenses
Research and      4,995    5,105    4,841   (2)%      3%      20,172     19,330      4% 
development
expenses
Restructuring         0        0        0      *       *           0        470  (100)% 
and other
charges
 Income from    25,724   27,848   25,163   (8)%      2%     110,041    100,338     10% 
  operations
                                                                             
Non-operating     (979)    (650)      701    51%  (240)%     (2,995)    (2,598)     15% 
income
(deductions) -
net
                                                                             
 Income from     24,745   27,198   25,864   (9)%    (4)%     107,046     97,740     10% 
  continuing
  operations,
  before tax
                                                                             
Provision for     6,506    8,015    5,800  (19)%     12%      30,777     27,486     12% 
taxes on
income
                                                                             
 Consolidated   18,239   19,183   20,064   (5)%    (9)%      76,269     70,254      9% 
  net income
                                                                             
Less: Net income     469      553      425  (15)%     10%       2,122      2,733   (22)% 
attributable to
non-controlling
interests
                                                                             
 Net Income   $  17,770 $  18,630 $  19,639   (5)%   (10)%  $    74,147 $    67,521     10% 
  attributable
  to Minerals
  Technologies
  Inc. (MTI)
                                                                             
Weighted average number of common shares                                              
outstanding:
                                                                             
 Basic          35,196   35,280   35,288                   35,340     36,018        
                                                                             
 Diluted        35,467   35,466   35,474                   35,529     36,236        
                                                                             
Earnings per share                                                                
attributable to MTI:
                                                                             
                                                                             
 Basic:       $    0.50 $    0.53 $    0.56   (6)%   (11)%  $      2.10 $      1.87     12% 
                                                                             
 Diluted:     $    0.50 $    0.53 $    0.55   (6)%    (9)%  $      2.09 $      1.86     12% 
                                                                             
Cash dividends $    0.05 $   0.025 $   0.025               $     0.125 $      0.10        
declared per
common share
                                                                             
* Percentage                                                                    
not meaningful



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              MINERALS TECHNOLOGIES INC. AND SUBSIDIARY COMPANIES
                 NOTES TO CONSOLIDATED STATEMENTS OF OPERATIONS
                                                               
                                                               
1) For comparative purposes, the quarterly periods ended December 31, 2012,
   September 30, 2012 and December 31, 2011 consisted of 92 days, 91 days, and
   90 days, respectively.
                                                               
2) On December 11, 2012, the Company effected a 2-for-1 stock split in the form
   of a stock dividend. Accordingly, all share and per share data presented
   herein reflects the effect of the stock split.
                                                               
3) To supplement the Company's consolidated financial statements presented in
   accordance with GAAP, the following is a presentation of the Company's
   non-GAAP income (loss), excluding special items, for the three month periods
   ended December 31, 2012, September 30, 2012 and December 31, 2011 and the
   twelve month periods ended December 31, 2012 and December 31, 2011, and a
   reconciliation to net income for such periods. The Company's management
   believes these non-GAAP measures provide meaningful supplemental information
   regarding its performance as inclusion of such special items are not
   indicative of the ongoing operating results and thereby affect the
   comparability of results between periods. The Company feels inclusion of
   these non-GAAP measures also provides consistency in its financial reporting
   and facilitates investors' understanding of historic operating trends.
  (millions of dollars)             Quarter Ended         Year Ended    
                               Dec.   Sept.  Dec.     Dec.   Dec.   
                                   31,     30,     31,         31,     31,
                               2012   2012   2011     2012   2011   
  Net Income attributable to   $  17.8 $  18.6 $  19.6   $  74.1 $  67.5  
   MTI, as reported
                                                               
  Special items:                                                
  Restructuring and other         0.0    0.0    0.0      0.0    0.5  
   costs
  Currency translation loss upon   0.0    0.0    0.0      0.0    1.4  
   deconsolidation of foreign
   entity
  Income tax settlement           0.0    0.0  (1.0)      0.0  (1.0)  
                                                               
  Related tax effects on          0.0    0.0    0.0      0.0  (0.1)  
   special items
                                                               
  Net income attributable to   $  17.8 $  18.6 $  18.6   $  74.1 $  68.3  
   MTI, excluding special items
                                                               
  Basic earnings per share,    $  0.50 $  0.53 $  0.53   $  2.10 $  1.90  
   excluding special items
  Diluted earnings per share,  $  0.50 $  0.53 $  0.52   $  2.09 $  1.89  
   excluding special items
                                                               
4) Free cash flow is defined as cash flow from operations less capital
   expenditures. The following is a presentation of the Company's non-GAAP free
   cash flow for the three month periods ended December 31, 2012, September 30,
   2012 and December 31, 2011 and the twelve month periods ended December 31,
   2012 and December 31, 2011 and a reconciliation to cash flow from operations
   for such periods. The Company's management believes this non-GAAP measure
   provides meaningful supplemental information as management uses this measure
   to evaluate the Company's ability to maintain capital assets, satisfy
   current and future obligations, repurchase stock, pay dividends and fund
   future business opportunities. Free cash flow is not a measure of cash
   available for discretionary expenditures since the Company has certain
   non-discretionary obligations such as debt service that are not deducted
   from the measure. The Company's definition of free cash flow may not be
   comparable to similarly titled measures reported by other companies.
                                   Quarter Ended         Year Ended    
  (millions of dollars)         Dec.   Sept.  Dec.     Dec.   Dec.   
                                   31,     30,     31,         31,     31,
                               2012   2012   2011     2012   2011   
  Cash flow from operations    $  35.1 $  40.0 $  40.8   $ 139.9 $ 133.7  
  Capital expenditures           14.3   14.0   15.1     52.1   52.0  
  Free cash flow               $  20.8 $  26.0 $  25.7   $  87.8 $  81.7  
                                                               
                                                               
5) The following table reflects the components of non-operating income and   
   deductions:
                                                               
  (millions of dollars)             Quarter Ended         Year Ended    
                               Dec.   Sept.  Dec.     Dec.   Dec.   
                                   31,     30,     31,         31,     31,
                               2012   2012   2011     2012   2011   
  Interest income    $   0.7 $   0.7 $   1.0   $   3.2 $   3.9  
  Interest expense    (0.8)  (0.8)  (0.9)    (3.2)  (3.3)  
  Foreign exchange    (0.6)  (0.1)    0.3    (1.3)  (1.2)  
   gains (losses)
  Currency translation loss upon                          
  deconsolidation    0.0    0.0    0.0      0.0  (1.4)  
   of foreign entity
  Other income        (0.3)  (0.4)    0.3    (1.7)  (0.6)  
   (deductions)
  Non-operating   $ (1.0) $ (0.6) $   0.7   $ (3.0) $ (2.6)  
   income (deductions), net
                                                               
                                                               
6) The analyst conference call to discuss operating results for the fourth
   quarter is scheduled for Friday, February 1, 2013 at 11:00 am and will be
   broadcast over the Company's website (www.mineralstech.com). The broadcast
   will remain on the Company's website for no less than one year.





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                                 SUPPLEMENTARY DATA
                MINERALS TECHNOLOGIES INC. AND SUBSIDIARY COMPANIES
                               (millions of dollars)
                                    (unaudited)
                                                             
                  Quarter Ended        % Growth         Year Ended      %
                                                                             Growth
                
SALES DATA     Dec.   Sept.  Dec.                 Dec.     Dec.    
                 31,     30,     31,                        31,       31,
              2012   2012   2011   Prior  Prior    2012     2011    Prior
                                         Qtr    Year                           Year
                                                             
United States $ 135.0 $ 138.3 $ 136.7   (2)%   (1)%  $   562.5 $   557.5      1%
International  109.2  112.0  115.0   (3)%   (5)%     443.1    487.4    (9)%
Net     $ 244.2 $ 250.3 $ 251.7   (2)%   (3)%  $ 1,005.6 $ 1,044.9    (4)%
Sales
                                                             
Paper PCC     $ 118.8 $ 120.6 $ 117.7   (1)%     1%  $   480.3 $   497.0    (3)%
Specialty PCC   16.1   16.4   15.4   (2)%     5%      65.9     63.6      4%
PCC Products  $ 134.9 $ 137.0 $ 133.1   (2)%     1%  $   546.2 $   560.6    (3)%
                                                             
Talc          $  11.0 $  11.9 $  11.5   (8)%   (4)%  $    48.1 $    46.9      3%
Ground Calcium   14.9   16.7   15.3  (11)%   (3)%      67.9     68.6    (1)%
Carbonate
Processed     $  25.9 $  28.6 $  26.8   (9)%   (3)%  $   116.0 $   115.5      0%
Minerals
Products
                                                             
Specialty     $ 160.8 $ 165.6 $ 159.9   (3)%     1%  $   662.2 $   676.1    (2)%
Minerals
Segment
                                                             
Refractory    $  63.5 $  66.0 $  71.3   (4)%  (11)%  $   264.1 $   287.4    (8)%
products
Metallurgical   19.9   18.7   20.5     6%   (3)%      79.3     81.4    (3)%
Products
Refractories  $  83.4 $  84.7 $  91.8   (2)%   (9)%  $   343.4 $   368.8    (7)%
Segment
                                                             
Net    $ 244.2 $ 250.3 $ 251.7   (2)%   (3)%  $ 1,005.6 $ 1,044.9    (4)%
Sales
                                                             
                                                             
SEGMENT OPERATING INCOME (LOSS) DATA                                

                                                             
Specialty     $  19.6 $  22.6 $  15.6  (13)%    26%  $    84.1 $    72.8     16%
Minerals
Segment
                                                             
Refractories  $   7.5 $   7.2 $  11.0     4%  (32)%  $    32.6 $    33.2    (2)%
Segment
                                                             
Unallocated   $ (1.4) $ (2.0) $ (1.5)  (30)%   (7)%  $   (6.7) $   (5.7)     18%
Corporate
Expenses
                                                             
Consolidated  $  25.7 $  27.8 $  25.1   (8)%     2%  $   110.0 $   100.3     10%
                                                             
                                                             
SEGMENT RESTRUCTURING and IMPAIRMENT                                 
COSTS
                                                             
Specialty     $   0.0 $   0.0 $   0.6      *      *  $     0.0 $     1.0       *
Minerals
Segment
                                                             
Refractories  $   0.0 $   0.0 $ (0.6)      *      *  $     0.0 $   (0.6)       *
Segment
                                                             
Consolidated  $   0.0 $   0.0 $   0.0      *      *  $     0.0 $     0.5       *
                                                             
                                                             
To supplement the Company's consolidated financial statements presented in
accordance with GAAP, the following is a presentation of the Company's non-GAAP
operating income, excluding special items (the restructuring and impairment costs
set forth in the above table), for the three month periods ended December 31, 2012,
September 30, 2012 and December 31, 2011 and the twelve month periods ended December
31, 2012 and December 31, 2011, constituting a reconciliation to GAAP operating
income set forth above. The Company's management believe these non-GAAP measures
provide meaningful supplemental information regarding its performance as inclusion
of such special items are not indicative of ongoing operating results and thereby
affect the comparability of results between periods. The Company feels inclusion of
these non-GAAP measures also provides consistency in its financial reporting and
facilitates investors' understanding of historic operating trends.
                                                             
                                                             
              Quarter Ended          % Growth         Year Ended        %
                                                                              Growth
SEGMENT         Dec.   Sept.  Dec.                 Dec.     Dec.    
OPERATING        31,     30,     31,                        31,       31,
INCOME,
EXCLUDING  2012   2012   2011   Prior  Prior    2012     2011    Prior
SPECIAL ITEMS                           Qtr.    Year                           Year
                                                             
Specialty     $  19.6 $  22.6 $  16.2  (13)%    21%  $    84.1 $    73.8     14%
Minerals
Segment
                                                             
Refractories  $   7.5 $   7.2 $  10.4     4%  (28)%  $    32.6 $    32.6      0%
Segment
                                                             
Unallocated   $ (1.4) $ (2.0) $ (1.5)  (30)%   (7)%  $   (6.7) $   (5.7)     18%
Corporate
Expenses
                                                             
Consolidated  $  25.7 $  27.8 $  25.1   (8)%     2%  $   110.0 $   100.8      9%
                                                             
* Percentage not                                                
meaningful



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                    CONDENSED CONSOLIDATED BALANCE SHEETS
                                                           
                                                           
                                                           
ASSETS                                                       
                                                           
   (In Thousands of Dollars)                                 
                                                December 31, December 31,
                                                  2012*        2011**
                                                           
Current assets:                                               
   Cash & cash equivalents                       $    454,092 $      395,152
   Short-term investments                             14,178        18,494
   Accounts receivable, net                          193,328       194,317
   Inventories                                        84,569        90,760
   Prepaid expenses and other current assets           18,318        21,566
     Total current assets                           764,485       720,289
                                                           
   Property, plant and equipment                   1,261,952     1,248,649
   Less accumulated depreciation                     944,283       930,515
     Net property, plant & equipment                 317,669       318,134
                                                           
   Goodwill                                           65,829        64,671
   Other assets and deferred charges                  63,206        61,861
                                                           
                                                           
     Total assets                               $  1,211,189 $    1,164,955
                                                           
                                                           
       LIABILITIES AND SHAREHOLDERS' EQUITY                    
                                                           
Current liabilities:                                          
   Short-term debt                               $      7,111 $        5,846
   Current maturities of long-term debt               76,977         8,552
   Accounts payable                                   98,371       103,354
   Restructuring liabilities                             318         1,411
   Other current liabilities                          67,321        61,739
     Total current liabilities                      250,098       180,902
                                                           
   Long-term debt                                      8,478        85,449
   Other non-current liabilities                     138,894       130,584
     Total liabilities                              397,470       396,935
                                                           
   Total MTI shareholders' equity                    790,411       741,612
   Non-controlling Interest                           23,308        26,408
     Total shareholders' equity                     813,719       768,020
                                                           
     Total liabilities and shareholders' equity $  1,211,189 $    1,164,955
                                                           
                                                           
  * Unaudited                                                 
 ** Condensed from audited financial statements.                

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Source: Minerals Technologies Inc via Thomson Reuters ONE
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