Cindi Buckwalter, (212) 878-1831
Michael Landau, (212) 878-1840
MINERALS TECHNOLOGIES REPORTS FOURTH QUARTER 2019 EARNINGS
OF $0.83 PER SHARE, OR $0.95 PER SHARE, EXCLUDING SPECIAL ITEMS
Company Reports 2019 Earnings per Share of $3.78;
Earnings per Share of $4.23, Excluding Special Items
Fourth Quarter and Full Year Highlights:
Fourth Quarter Sales of $440 Million; $1.791 Billion in Full Year
Strong Operating Cash Flow of $80 Million in Fourth Quarter; $238 Million in Full Year, up 17 Percent
Double Digit Operating Margins Across All Segments in Fourth Quarter and Fiscal 2019, Excluding Special Items
Advanced Strategic Growth Initiatives Through New Product Introductions, Capacity Expansions and New PCC Satellites
$92 Million of Debt Payments and Returned $48 Million to Shareholders
through Share Repurchases and Dividends in 2019
NEW YORK, January 30—Minerals Technologies Inc. (NYSE: MTX) (“MTI” or “the Company”) today reported diluted earnings per share of $0.95, excluding special
items, for the fourth quarter ended December 31, 2019, compared with diluted earnings per share of $1.17 in the prior year. Reported diluted earnings per share were $0.83 compared with $1.22 in the prior year.
For the full year 2019, the Company reported earnings per share of $4.23, excluding special items, compared with earnings per share of $4.84 in the prior
year. Reported earnings per share were $3.78 compared with earnings per share of $4.75 for the full year 2018.
“Our fourth quarter and full year 2019 results reflect our solid operational and strategic execution against the backdrop of weaker conditions in several
markets we serve,” said Douglas T. Dietrich, Chief Executive Officer. “In 2019, we delivered sales growth across several product lines and geographies, increased volumes through capacity expansions and a new PCC satellite, and capitalized on customer
demand for our latest innovative products. Our culture of continuous improvement and focus on aggressive cost control were fundamental in making the necessary changes to adjust our operations to the changing market environment.”
Mr. Dietrich continued, “During the year, we delivered strong free cash flow and maintained our balanced approach to capital allocation by making $92 million
of debt payments and returning $48 million to shareholders. We also made tangible progress advancing several of our long-term strategic growth initiatives. Our disciplined execution, strong balance sheet, and breadth of growth opportunities position
MTI well for continued value creation in 2020.”
FOURTH QUARTER 2019
Worldwide net sales were $440.2 million. Foreign exchange had an
unfavorable impact on sales of approximately $3.2 million or 1 percentage point of growth. Operating income was $47.7 million and represented 10.8 percent of sales. Operating income excluding special items was $53.0 million and represented 12.0
percent of sales.
Performance Materials and Specialty Minerals
Sales in the Minerals businesses, which include the Performance Materials and Specialty Minerals segments, decreased 2 percent in the fourth quarter to $343.2
million. Operating income for the Minerals businesses was $42.6 million and represented 12.4 percent of sales.
Performance Materials segment sales were $201.4
Metalcasting sales decreased 12 percent, primarily due to weaker foundry demand for automotive, heavy truck and agricultural equipment in the U.S. and parts
of Asia as well as lower volumes and pricing in the specialty sands business. However, overall Metalcasting sales grew 11 percent in China, reflecting continued market penetration of greensand bonds, which increased 14 percent. Household, Personal
Care & Specialty Products sales increased 4 percent, driven by the continued strong performance of our global pet care business which grew 8 percent, as well as increases in our Human and Animal Health businesses. Building Materials sales grew 12
percent with higher North American construction activity and Environmental Products sales decreased 9 percent due to several large projects in the prior year.
Operating income for the segment was $23.2 million and represented 11.5 percent of sales. Operating income and margins were affected by lower Metalcasting
sales and a weaker overall product mix, partially offset by improved profitability in Environmental Products.
The Performance Materials segment provides a wide range of bentonite-based and synthetic materials for industrial and consumer markets and for non-residential
construction, environmental remediation and infrastructure projects worldwide.
Specialty Minerals segment sales, which consist of the
Precipitated Calcium Carbonate (PCC) and Processed Minerals product lines, were essentially flat at $141.8 million compared to the prior year.
Worldwide sales of PCC, which is used mainly in the manufacturing processes of the paper industry, decreased 1 percent to $109.0 million largely due to
previously announced customer paper machine shutdowns in North America. However, Paper PCC volumes in Asia grew 6 percent, driven by the ramp up of a new satellite
and capacity additions. Specialty PCC products increased 2 percent, primarily due to increased market demand for sealant products.
Processed Minerals sales were flat at $32.8 million. Processed Minerals products are used in the building materials, polymers, ceramics, consumer products,
paints and coatings, glass and other manufacturing industries.
Segment operating income was $19.4 million and represented 13.7 percent of sales. The decrease in operating income was driven by the paper mill shutdowns in
North America, lower volumes in Europe and lower talc sales for automotive applications, which was partially offset by higher pricing.
Refractories and Energy Services
Sales in the Service businesses, which include the Refractories and Energy Services segments, decreased 1 percent to $97.0 million. Operating income for the
Service businesses was $12.9 million and represented 13.3 percent of sales.
Refractories segment sales decreased 6 percent to $73.4
million, primarily due to lower sales of Refractory Products globally, partially offset by higher metallurgical products and laser equipment sales. The Refractories segment operating income was $10.4 million and represented 14.2 percent of sales. The Refractories segment provides products and services primarily to the worldwide steel industry.
Energy Services segment sales rose 16 percent to $23.6
million, primarily driven by higher well testing activity in the Gulf of Mexico and increased international sales. Operating income increased to $2.5 million and represented 10.6 percent of sales. Energy Services offers a range of patented
technologies, products and services for off-shore filtration and well testing to the worldwide oil and gas industry.
FULL YEAR 2019
Worldwide net sales were $1.791 billion, up 1 percent on a constant currency basis. Operating income, as reported, was $208.7 million and represented 11.7
percent of sales. Excluding special items, operating income was $235.3 million and represented 13.1 percent of sales.
Performance Materials and Specialty Minerals
Sales in the Minerals businesses decreased 1 percent to $1.398 billion. Operating income for the Minerals businesses was $180.2 million and represented 12.9
percent of sales. Excluding special items, operating income was $189.7 million and was 13.6 percent of sales.
Performance Materials segment sales decreased 1
percent to $823.3 million.
Household, Personal Care & Specialty Products and Environmental Products both increased 8 percent, offset by an 11 percent decrease in Metalcasting sales
and a 2 percent decrease in Building Materials.
Operating income for the segment was $97.1 million and represented 11.8 percent of sales. Excluding special items, operating income was $104.1 million and
represented 12.6 percent of sales.
Specialty Minerals segment sales decreased 3 percent to
Worldwide sales of PCC decreased 3 percent while Specialty PCC products increased 3 percent.
Processed Minerals sales decreased 2 percent.
Segment operating income was $83.1 million and represented 14.5 percent of sales. Operating income excluding special items was $85.6 million and was 14.9
percent of sales.
Refractories and Energy Services
Sales in the Service businesses grew 1 percent to $393.3 million. Operating income for the Service businesses was $47.6 million and represented 12.1 percent
of sales. Operating income excluding special items increased 2 percent to $52.7 million and was 13.4 percent of sales.
Refractories segment sales decreased 4 percent to
$298.1 million. The Refractories segment operating income was $39.8 million and represented 13.4 percent of sales. Excluding special items, operating income was $43.1 million and represented 14.5 percent of sales.
Energy Services segment sales rose 22 percent to $95.2
million. Operating income increased to $7.8 million and represented 8.2 percent of sales. Excluding special items, operating income increased to $9.6 million and was 10.1 percent of sales.
Minerals Technologies will host a conference call tomorrow, January 31, 2020 at 11 a.m. Eastern Time. The conference call will be
broadcast live on our website: www.mineralstech.com
. To listen to the call,
go to the website and click on "Investor Relations," then click on "Quarterly Results & Conference Calls." A presentation for the call will be available at the same location at approximately 10:30 a.m. Eastern Time on January 31, 2020.
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 2018 Annual Report
on Form 10-K and in our other reports filed with the Securities and Exchange Commission.
About Minerals Technologies Inc.
New York-based Minerals Technologies Inc. (MTI) is a resource- and technology-based growth company that develops, produces and markets worldwide a broad range
of specialty mineral, mineral-based and synthetic mineral products and related systems and services. MTI serves the paper, foundry, steel, construction, environmental, energy, polymer and consumer products industries. The Company reported sales
of $1.791 billion in 2019. For further information, please visit our website at www.mineralstech.com. (MTI-E)