- Record Third Quarter Operating Income and Earnings Per Share Excluding Special Items
- Strong Operating Margin and Cash Flow
- Announced New $200 Million Share Repurchase Program and Completed Previous $75 Million Program
- Increased Dividend by 10%
"We delivered a record third quarter and are on track for another record year. Both operating segments have accomplished a tremendous amount this year, extending their leadership positions in each of their markets, introducing innovative new products, and expanding margins.” said Douglas T. Dietrich, Chairman and Chief Executive Officer, "MTI's financial strength positions us well and provides multiple levers to continue to drive shareholder value.”
Worldwide net sales were $525 million, down 4 percent as reported or 2 percent versus the prior year on an underlying basis.
Reported operating income was $77 million. Operating income excluding special items was $79 million, a third quarter record for MTI, up 3 percent over the prior year and represented 15.1 percent of sales, as the Company continues to execute on its margin expansion strategy.
Third Quarter 2024 Segment Results
Consumer & Specialties segment sales were $280 million in the third quarter, up 1 percent on an underlying basis.
Household & Personal Care sales were $131 million, up 2 percent from the prior year
driven by increased sales in pet care and other consumer-oriented products. Specialty Additives sales were $149 million and grew 1 percent on an underlying basis.
Segment operating income increased by 9% over the prior year to $42 million. Underlying volume and mix, improved input costs and gains in productivity all contributed to higher operating income versus prior year. Operating margin expanded by 170 basis points over the prior year to 14.9% of sales.
The Consumer & Specialties segment provides technologically enhanced products to consumer-driven end markets, including mineral-to-market household products, as well as specialty additives that become functional components in a variety of consumer and industrial goods. This segment includes two product lines: Household & Personal Care and Specialty Additives.
Engineered Solutions segment sales were $244 million in the third quarter, down 5 percent from the prior year.
High-Temperature Technologies sales were $175 million, down 1 percent from the prior year due to softer demand in some industrial end markets. Environmental & Infrastructure sales were $70 million, 12 percent lower than the prior year as a result of continued weakness in commercial construction markets and large-scale environmental project activity.
Segment operating income was $39 million, down 4 percent from the prior year, as the impact from lower volumes was mitigated by improved input costs and pricing. Operating margin improved by 10 basis points versus the prior year to 15.9 percent of sales.
The Engineered Solutions segment provides advanced process technologies and solutions that are designed to improve our customers' manufacturing processes and projects. This segment includes two product lines: High-Temperature Technologies and Environmental & Infrastructure.
Dividend Increase and Share Repurchase Program
As previously announced, the Company increased its regular quarterly dividend on the Company's common stock by 10% to $0.11 per share. The dividend is payable on December 5, 2024, to stockholders of record at the close of business on October 31, 2024.
In addition, MTI's Board of Directors has authorized a new $200 million share repurchase program. The Company expects to repurchase shares under this authorization as part of its balanced approach to capital allocation.
"Increasing our dividend and authorizing a new repurchase program reflects the Board's ongoing confidence in MTI's financial strength as we continue to grow earnings and cash flow," said Douglas T. Dietrich, Chairman and Chief Executive Officer. "The combination of this increased dividend and new repurchase program demonstrates our commitment to shareholder returns, while maintaining the flexibility to fund inorganic growth opportunities.”
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Minerals Technologies will host a conference call tomorrow, October 25, 2024, at 11 a.m. Eastern Time. The live earnings webcast can be accessed at https://investors.mineralstech.com/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 October 25, 2024.
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FORWARD-LOOKING STATEMENTS
This press release may contain "forward‐looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements provide current expectations and forecasts of future events such as new products, revenues and financial performance, and are not limited to describing historical or current facts. They can be identified by the use of words such as "believes,” "expects,” "plans,” "intends,” "anticipates,” and other words and phrases of similar meaning. Forward-looking statements are necessarily based on assumptions, estimates and limited information available at the time they are made. A broad variety of risks and uncertainties, both known and unknown, as well as the inaccuracy of assumptions and estimates, can affect the realization of the expectations or forecasts in these statements. Actual future results may vary materially. Significant factors that could affect the expectations and forecasts include worldwide general economic, business, and industry conditions; the cyclicality of our customers' businesses and their changing regional demands; our ability to compete in very competitive industries; consolidation in customer industries, principally paper, foundry and steel; our ability to renew or extend long term sales contracts for our satellite operations; our ability to generate cash to service our debt; our ability to comply with the covenants in the agreements governing our debt; our ability to effectively achieve and implement our growth initiatives or consummate the transactions described in the statements; our ability to successfully develop new products; our ability to defend our intellectual property; the increased risks of doing business abroad; the availability of raw materials and access to ore reserves at our mining operations, or increases in costs of raw materials, energy, or shipping; compliance with or changes to regulation in the areas of environmental, health and safety, and tax; risks and uncertainties related to the voluntary petitions for relief under Chapter 11 of the U.S. Bankruptcy Code filed by our subsidiaries BMI OldCo (f/k/a Barretts Minerals Inc.) and Barretts Ventures Texas LLC; claims for legal, environmental and tax matters or product stewardship issues; operating risks and capacity limitations affecting our production facilities; seasonality of some of our businesses; cybersecurity and other threats relating to our information technology systems; and other risk factors and cautionary statements in our 2023 Annual Report on Form 10‐K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and other reports filed with the Securities and Exchange Commission. The Company undertakes no obligation to publicly update any forward‐looking statement, whether as a result of new information, future events, or otherwise.
About Minerals Technologies Inc.
New York-based Minerals Technologies Inc. (MTI) is a leading, technology-driven specialty minerals company that develops, produces, and markets a broad range of mineral and mineral-based products, related systems, and services. MTI serves globally a wide range of consumer and industrial markets, including household, food and pharmaceutical, paper, packaging, automotive, construction, and environmental. The company reported global sales of $2.2 billion in 2023. For further information, please visit our website at www.mineralstech.com.
| CONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS) | |||||||||||||||||||||||||
| MINERALS TECHNOLOGIES INC. AND SUBSIDIARY COMPANIES | |||||||||||||||||||||||||
| (in millions, except per share data) | |||||||||||||||||||||||||
| (unaudited) | |||||||||||||||||||||||||
| Quarter Ended | % Growth | Nine Months Ended | % Growth | ||||||||||||||||||||||
| Sep. 29, | Jun. 30, | Oct. 1, | Sep. 29, | Oct. 1, | |||||||||||||||||||||
| 2024 | 2024 | 2023 | Prior Qtr. | Prior Year | 2024 | 2023 | Prior Year | ||||||||||||||||||
| Net sales | $ | 524.7 | $ | 541.2 | $ | 547.8 | (3 | )% | (4 | )% | $ | 1,600.4 | $ | 1,645.4 | (3 | )% | |||||||||
| Cost of goods sold | 389.5 | 397.3 | 414.7 | (2 | )% | (6 | )% | 1,185.4 | 1,263.6 | (6 | )% | ||||||||||||||
| Production margin | 135.2 | 143.9 | 133.1 | (6 | )% | 2 | % | 415.0 | 381.8 | 9 | % | ||||||||||||||
| Marketing and administrative expenses | 50.1 | 53.3 | 50.9 | (6 | )% | (2 | )% | 156.4 | 155.0 | 1 | % | ||||||||||||||
| Research and development expenses | 5.9 | 5.8 | 5.2 | 2 | % | 13 | % | 17.3 | 16.1 | 7 | % | ||||||||||||||
| Provision for credit losses | 0.0 | 30.0 | 0.0 | * | * | 30.0 | 0.0 | * | |||||||||||||||||
| Restructuring and other items, net | 0.0 | 0.0 | 0.3 | * | * | 0.0 | 6.9 | * | |||||||||||||||||
| Impairment of assets | 0.0 | 0.0 | 71.7 | * | * | 0.0 | 71.7 | * | |||||||||||||||||
| Acquisition-related expenses | 0.0 | 0.0 | 0.0 | * | * | 0.0 | 0.3 | * | |||||||||||||||||
| Litigation expenses | 2.6 | 4.2 | 12.9 | (38 | )% | (80 | )% | 8.9 | 26.8 | (67 | )% | ||||||||||||||
| Income (loss) from operations | 76.6 | 50.6 | (7.9 | ) | 51 | % | * | 202.4 | 105.0 | 93 | % | ||||||||||||||
| Interest expense, net | (14.0 | ) | (14.9 | ) | (15.3 | ) | (6 |
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