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Minerals Technologies Inc : Minerals Technologies Achieves Record Earnings per Share of $0.63 from Continuing Operations, Up



Minerals Technologies Inc : Minerals Technologies Achieves Record Earnings per
    Share of $0.63 from Continuing Operations, Up 11%, for Second Quarter

  Company Reports Record Operating Income of $32.4 million, Up 7% over Prior
              Year and Achieves Record First Half Earnings-Up 8%
                                  ----------
Highlights:

· Sales Increased 2% over Prior Year - Underlying Sales Increased 4%,
  excluding Foreign Exchange

· Record Operating Income for Specialty Minerals Segment; 15.0% of Sales

· Restarted PCC Plant in France Supplying New Paper Mill Owner - Double A
  Paper

· Contribution from FulFill^®  Continues on Track for 2013 Projection

· Start-Up of Ultrafine Expansion for Specialty PCC

 
NEW YORK, July 25, 2013-Minerals Technologies Inc. (NYSE: MTX) today reported
record second quarter diluted earnings per common share of $0.63 from
continuing operations, an 11-percent increase over the $0.57 recorded in the
same period in 2012.
 
"We continued our strong financial performance, achieving record earnings for
both the second quarter and the first half of 2013," said Robert S. Wetherbee,
chief executive officer. "The company reported a 4-percent increase in
underlying sales that was a direct result of executing our strategies of
geographic expansion and new product innovation. An increase in Paper PCC
volume was based on the start-up of three new satellite plants in Asia since
the second quarter of 2012, increased penetration of our FulFill^® technology,
and the restart of production at our satellite plant in France, which has been
idle for nearly two years. In the Refractories segment, our agreement with
United Steel Company in Bahrain, which began operations in the third quarter
of 2012, also contributed to the revenue growth."
 
Worldwide net sales in the second quarter increased 2 percent from the
previous year to $256.8 million from $251.4 million. Foreign exchange had an
unfavorable impact on sales of approximately $3.7 million.
 
Income from operations increased 7 percent to a record $32.4 million in the
second quarter of 2013, due to an 11 percent improvement in the Specialty
Minerals segment. Income from operations represented 12.6 percent of sales in
the second quarter of 2013 as compared with 12.0 percent of sales in the prior
year, a 5-percent increase.
 
In the second quarter, the company recorded a loss from discontinued
operations of $4.9 million, net of tax, or $0.14 per share, primarily related
to facility closure costs at its Paper PCC merchant facility in Walsum,
Germany. Earnings per share, including discontinued operations, were $0.49.
 
The company generated approximately $34 million in cash flow from operations,
and the annualized rate of return on capital was 9.9 percent in the second
quarter. The company also repurchased $10.7 million in stock during the
quarter.
 
Second quarter worldwide sales in the Specialty Minerals segment, which
includes the PCC and Processed Minerals product lines, increased 2 percent to
$168.3 million over the second quarter of 2012. Operating income for the
segment increased 11 percent to $25.2 million, from $22.7 million recorded in
the second quarter of 2012-a record quarter for that segment.
 
Worldwide net sales of PCC, which is primarily used in the manufacturing
process of the paper industry, increased 1 percent to $135.6 million. Foreign
exchange had an unfavorable impact on sales of $1.7 million. Paper PCC sales
increased 1 percent to $118.3 million over the prior year. Paper PCC growth
was attributable to increased volumes in Europe and Latin America, the new
satellite plants in Asia, and increased usage of the FulFill^® technology at
existing customers.  These factors more than offset weaker demand in North
America due to seasonal paper mill maintenance outages. Sales of Specialty PCC
increased 2 percent to $17.3 million from the same period last year primarily
due to higher volumes in the U.S. and increased pricing. Specialty PCC sales
increased 8 percent in the U.S. driven by the expansion at our facility in
Adams, Massachusetts. This was partially offset by weak market demand in
Europe.
 
Net sales of Processed Minerals products increased 3 percent to $32.7 million
in the second quarter compared with $31.8 million in 2012. Ground calcium
carbonate sales increased 5 percent to $19.7 million, due primarily to a more
favorable product mix.
 
Net sales in the Refractories segment in the second quarter increased 3
percent to $88.5 million from $85.9 million in the same period in 2012.
 Foreign exchange had an unfavorable impact on sales of approximately $2.0
million. Sales of refractory products and systems to steel and other
industrial applications grew 3 percent to $67.2 million due to incremental
sales from the operations in Bahrain. Sales of metallurgical products
increased 4 percent to $21.3 million in the second quarter of 2013 due to
higher volumes in both North America and Europe. Sales grew in both product
lines despite weak market conditions in North America and Europe.
 
The Refractories segment recorded operating income of $8.5 million, a
2-percent decrease from the second quarter of 2012, primarily due to lower
profitability from equipment sales and the closure of two North American steel
mill customers in the second quarter of 2012.
 
"Operating performance continued to be strong, and we will continue to deploy
our key strategies of geographic expansion, new product innovation and
operational excellence that will provide us with continued performance
improvement and additional opportunities for future growth," said Mr.
Wetherbee.
                                  ----------
 
Minerals Technologies will sponsor a conference call tomorrow, July 26, 2013
at 11 a.m. The conference call will be broadcast live on the company web site,
which can be found at www.mineralstech.com.
 
This press release may contain "forward-looking statements" within the meaning
of the Private Securities Litigation Reform Act of 1995, which describe or are
based on current expectations. 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 2012 Annual Report on Form 10-K and in our other
reports filed with the Securities and Exchange Commission.
For further information about Minerals Technologies Inc. look on the internet
                       at http://www.mineralstech.com.
 
 

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                            CONDENSED CONSOLIDATED STATEMENTS OF INCOME                               
                        MINERALS TECHNOLOGIES INC. AND SUBSIDIARY COMPANIES                           
                                (in thousands, except per share data)
                                              (unaudited)
                                                                                                      
                                                                                                %     
                                 Quarter Ended            % Growth       Six Months Ended     Growth
                           June      Mar.     July 1,   Prior   Prior      June     July 1,   Prior   
                            30,       31,                                   30,
                           2013      2013      2012     Qtr.     Year      2013      2012      Year   
                                                                                                      
Net sales               $ 256,844 $ 250,513 $ 251,358      3%      2%   $ 507,357 $ 505,916       0%  
                                                                                                      
Cost of goods sold        197,995   194,630   194,562      2%      2%     392,625   393,511     (0)%  
                                                                                                      
Production margin          58,849    55,883    56,796      5%      4%     114,732   112,405       2%  
                                                                                                      
Marketing  and             21,644    22,812    21,631    (5)%      0%      44,456    44,304       0%  
administrative expenses
Research and                4,826     4,818     5,025      0%    (4)%       9,644    10,072     (4)%  
development expenses
                                                                                                      
  Income from              32,379    28,253    30,140     15%      7%      60,632    58,029       4%  
  operations
                                                                                                      
Non-operating income      (1,472)       133     (767)       *     92%     (1,339)   (1,366)     (2)%  
(deductions) - net
                                                                                                      
  Income from              30,907    28,386    29,373      9%      5%      59,293    56,663       5%  
  continuing
  operations, before
  tax
                                                                                                      
Provision for taxes on      8,221     8,046     8,682      2%    (5)%      16,267    16,755     (3)%  
income
                                                                                                      
  Income from              22,686    20,340    20,691     12%     10%      43,026    39,908       8%  
  continuing
  operations, net of
  tax
                                                                                                      
  Loss from               (4,947)     (736)     (452)       *       *     (5,683)   (1,061)        *  
  discontinued
  operations, net of
  tax
                                                                                                      
  Consolidated net         17,739    19,604    20,239   (10)%   (12)%      37,343    38,847     (4)%  
  income
                                                                                                      
Less: Net income              619       848       524   (27)%     18%       1,467     1,100      33%  
attributable to
non-controlling
interests
                                                                                                      
  Net Income            $  17,120 $  18,756 $  19,715    (9)%   (13)%   $  35,876 $  37,747     (5)%  
  attributable to
  Minerals Technologies
  Inc. (MTI)
                                                                                                      
Weighted average number                                                                               
of common shares
outstanding:
                                                                                                      
  Basic                    34,799    34,996    35,448                      34,897    35,442           
                                                                                                      
  Diluted                  35,031    35,253    35,580                      35,141    35,590           
                                                                                                      
Earnings per share                                                                                    
attributable to MTI:
                                                                                                      
                                                                                                      
  Basic:                                                                                              
           Income from  $    0.63 $    0.56 $    0.57     13%     11%   $    1.19 $    1.09       9%  
           continuing
           operations
           attributable
           to MTI
           Loss from       (0.14)    (0.02)    (0.01)       *       *      (0.16)    (0.03)        *  
           discontinued
           operations
           attributable
           to MTI
           Net Income   $    0.49 $    0.54 $    0.56    (9)%   (13)%   $    1.03 $    1.06     (3)%  
           attributable
           to MTI
           common
           shareholders
                                                                                                      
  Diluted:                                                                                            
           Income from  $    0.63 $    0.55 $    0.57     15%     11%   $    1.18 $    1.09       8%  
           continuing
           operations
           attributable
           to MTI
           Loss from       (0.14)    (0.02)    (0.01)       *       *      (0.16)    (0.03)        *  
           discontinued
           operations
           attributable
           to MTI
           Net Income   $    0.49 $    0.53 $    0.56    (8)%   (13)%   $    1.02 $    1.06     (4)%  
           attributable
           to MTI
           common
           shareholders
                                                                                                      
Cash dividends declared $    0.05 $    0.05 $   0.025                   $    0.10 $    0.05           
per common share
                                                                                                      
* Percentage not                                                                                      
meaningful

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                        MINERALS TECHNOLOGIES INC. AND SUBSIDIARY COMPANIES
                       NOTES TO CONDENSED CONSOLIDATED STATEMENTS OF INCOME
                                                                                             
                                                                                             
  1) For comparative purposes, the quarterly periods ended June 30, 2013, March 31, 2013 and
     July 1, 2012 consisted of 91 days, 90 days, and 91 days, respectively.  The six month
     periods ended June 30, 2013 and July 1, 2012 consisted of 181 days and 183 days,
     respectively.
                                                                                             
  2) This press release contains a measure of underlying sales growth year-over-year
     excluding the impact of foreign exchange.  This is a non-GAAP measure.  We believe this
     measure provides investors with a more complete understanding of underlying sales trends
     by providing sales growth on a a consistent basis.  The reconcilation of reported sales
     growth to underlying sales growth for the second quarter is as follows:
                                                                                             
                                             Unfavorable                                     
                                  Reported     Foreign     Underlying                        
                                    Net       Exchange       Sales                           
                                   Sales
                                   Growth      Impact        Growth                          
     Specialty Minerals Segment       1.7%          1.0%         2.7%                        
     Refractories Segment             3.1%          2.3%         5.4%                        
     Minerals Technologies Inc.       2.2%          1.5%         3.7%                        
                                                                                             
  3) Free cash flow is defined as cash flow from continuing operations less capital
     expenditures.  The following is a presentation of the Company's non-GAAP free cash flow
     for the quarterly periods ended June 30, 2013, March 31, 2013  and July 1, 2012  and the
     six month periods ended June 30, 2013 and July 1, 2012 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                   Six Months      
                                                                                Ended
                                   
     (millions of dollars)        June 30,    March 31,     July 1,         June    July     
                                                                             30,     1,
                                    2013        2013          2012          2013    2012     
     Cash flow from continuing  $     33.9 $        26.0 $       40.3     $  59.9 $  66.6    
     operations
     Capital expenditures             13.0           8.7         14.7        21.7    23.8    
     Free cash flow             $     20.9 $        17.3 $       25.6     $  38.2 $  42.8    
                                                                                             
                                                                                             
  4) The following table reflects the components of non-operating income and deductions:     
                                                                                             
     (millions of dollars)                   Quarter Ended                   Six Months      
                                                                                Ended
                                                                             
                                  June 30,    March 31,     July 1,         June    July     
                                                                             30,     1,
                                    2013        2013          2012          2013    2012     
               Interest income  $      0.7 $         0.7 $        0.8     $   1.4 $   1.8    
               Interest expense      (0.8)         (0.8)        (0.8)       (1.6)   (1.6)    
               Foreign exchange      (1.3)           0.6        (0.3)       (0.6)   (0.7)    
     gains (losses)
               Other income          (0.1)         (0.4)        (0.5)       (0.5)   (0.9)    
     (deductions)
                  Non-operating $    (1.5) $         0.1 $      (0.8)     $ (1.3) $ (1.4)    
     income (deductions), net
                                                                                             
                                                                                             
  5) During the second quarter of 2013, the Company ceased operations at its Paper PCC       
     merchant plant in Walsum, Germany and reclassified such operations as discontinued.
     The following table details selected financial information for the Walsum plant         
     included within discontinued operations in the Consolidated Statements of Income:
      
     (millions of dollars)                   Quarter Ended                   Six Months      
                                                                                Ended
                                                                             
                                  June 30,    March 31,     July 1,         June    July     
                                                                             30,     1,
                                    2013        2013          2012          2013    2012     
     Net Sales                  $      0.8 $         0.8 $        2.6     $   1.6 $   5.2    
                                                                                             
     Production Margin               (1.2)         (1.0)        (0.5)       (2.2)   (1.1)    
     Total Expenses                    0.2           0.1          0.2         0.3     0.5    
     Facility closure costs            5.9           0.0          0.0         5.9     0.0    
                                                                                             
     Loss from operations       $    (7.3) $       (1.1) $      (0.7)     $ (8.4) $ (1.6)    
     Benefit for taxes on            (2.4)         (0.4)        (0.2)       (2.7)   (0.5)    
     income
                                                                                             
     Loss from discontinued     $    (4.9) $       (0.7) $      (0.5)     $ (5.7) $ (1.1)    
     operations, net of tax
                                                                                             
                                                                                             
  6) The analyst conference call to discuss operating results for the second quarter is
     scheduled for Friday, July 26, 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)
                                                                           
                                                           Six Months      %
                    Quarter Ended         % Growth            Ended       Growth
SALES DATA      June    Mar.    July    Prior   Prior     June    July    Prior
                 30,     31,     1,                        30,     1,
                2013    2013    2012     Qtr     Year     2013    2012     Year
                                                                           
United States $ 142.8 $ 139.8 $ 143.3      2%    (0)%   $ 282.6 $ 289.1     (2)%
International   114.0   110.7   108.1      3%      5%     224.8   216.8       4%
      Net     $ 256.8 $ 250.5 $ 251.4      3%      2%   $ 507.4 $ 505.9       0%
Sales
                                                                           
Paper PCC     $ 118.3 $ 120.5 $ 116.7    (2)%      1%   $ 238.8 $ 235.8       1%
Specialty PCC    17.3    16.8    17.0      3%      2%      34.2    33.4       2%
PCC Products  $ 135.6 $ 137.3 $ 133.7    (1)%      1%   $ 273.0 $ 269.2       1%
                                                                           
Talc          $  13.0 $  12.4 $  13.1      5%    (1)%   $  25.4 $  25.2       1%
Ground           19.7    17.2    18.7     15%      5%      36.9    36.2       2%
Calcium
Carbonate
Processed     $  32.7 $  29.6 $  31.8     10%      3%   $  62.3 $  61.4       1%
Minerals
Products
                                                                           
Specialty     $ 168.3 $ 166.9 $ 165.5      1%      2%   $ 335.3 $ 330.6       1%
Minerals
Segment
                                                                           
Refractory    $  67.2 $  62.4 $  65.4      8%      3%   $ 129.6 $ 134.5     (4)%
products
Metallurgical    21.3    21.2    20.5      0%      4%      42.5    40.8       4%
Products
Refractories  $  88.5 $  83.6 $  85.9      6%      3%   $ 172.1 $ 175.3     (2)%
Segment
                                                                           
       Net    $ 256.8 $ 250.5 $ 251.4      3%      2%   $ 507.4 $ 505.9       0%
Sales
                                                                           
                                                                           
SEGMENT OPERATING INCOME DATA                                              
                                                                           
Specialty     $  25.2 $  23.3 $  22.7      8%     11%   $  48.5 $  43.5      11%
Minerals
Segment
                                                                           
Refractories  $   8.5 $   6.9 $   8.7     23%    (2)%   $  15.4 $  17.8    (14)%
Segment
                                                                           
Unallocated   $ (1.3) $ (2.0) $ (1.3)   (36)%      1%   $ (3.3) $ (3.3)     (1)%
Corporate
Expenses
                                                                           
Consolidated  $  32.4 $  28.2 $  30.1     15%      7%   $  60.6 $  58.0       4%
                                                                           

 

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             MINERALS TECHNOLOGIES INC. AND SUBSIDIARY COMPANIES
                    CONDENSED CONSOLIDATED BALANCE SHEETS
                                                                   
                                                                   
                                                                   
    ASSETS                                                         
                                                                   
    (In Thousands of Dollars)                                      
                                                      June 30,    December 31,
                                                        2013*        2012**
                                                                   
Current assets:                                                    
    Cash & cash equivalents                         $   458,065 $      454,092
    Short-term investments                               15,898         14,178
    Accounts receivable, net                            205,917        193,328
    Inventories                                          89,044         84,569
    Prepaid expenses and other current assets            16,913         18,318
                Total current assets                    785,837        764,485
                                                                   
    Property, plant and equipment                     1,258,776      1,261,952
    Less accumulated depreciation                       949,973        944,283
                Net property, plant & equipment         308,803        317,669
                                                                   
    Goodwill                                             64,592         65,829
    Other assets and deferred charges                    54,439         63,206
                                                                   
                                                                   
                Total assets                        $ 1,213,671 $    1,211,189
                                                                   
                                                                   
       LIABILITIES AND SHAREHOLDERS' EQUITY                        
                                                                   
Current liabilities:                                               
    Short-term debt                                 $     7,021 $        7,111
    Current maturities of long-term debt                 75,566         76,977
    Accounts payable                                    110,765         98,371
    Other current liabilities                            63,446         67,639
                Total current liabilities               256,798        250,098
                                                                   
    Long-term debt                                        8,200          8,478
    Other non-current liabilities                       133,118        138,894
                Total liabilities                       398,116        397,470
                                                                   
    Total MTI shareholders' equity                      792,843        790,411
    Non-controlling Interest                             22,712         23,308
                Total shareholders' equity              815,555        813,719
                                                                   
                Total liabilities and shareholders' $ 1,213,671 $    1,211,189
                equity
                                                                   
                                                                   
  * Unaudited                                                      
 ** Condensed from audited financial statements.                   

MTX Q2 2013 Financial

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This announcement is distributed by Thomson Reuters on behalf of Thomson
Reuters clients.

The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and other
applicable laws; and
(ii) they are solely responsible for the content, accuracy and originality of
the
information contained therein.

Source: Minerals Technologies Inc via Thomson Reuters ONE
HUG#1718848
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