Release Details

Highlights:

• Record First Quarter Sales of $546 Million, 5 Percent Above Prior Year
• Operating Income of $63 Million, Increased 43 Percent Sequentially
• Cash Flow from Operations Improved by $33 Million from Prior Year
• Reorganization and New Segmentation Implemented
• Announced Three Long-term PCC Supply Agreements in Asia

NEW YORK, April 27, 2023 (GLOBE NEWSWIRE) -- Minerals Technologies Inc. (NYSE: MTX) (“MTI” or “the Company”) today reported earnings per share of $1.14 for the first quarter ended April 2, 2023.

“Our performance in the first quarter is a result of the diligent and focused execution on margin recovery, improved cash flows and growth,” said Douglas T. Dietrich, Chairman and Chief Executive Officer of Minerals Technologies. “We completed the reorganization and re-segmentation of the company to better reflect our balanced portfolio, further align business priorities and enhance growth and performance going forward.”

First Quarter 2023

Worldwide net sales were $546 million, up 8 percent sequentially and 5 percent over the prior year. On a constant currency basis, sales grew 8 percent over the prior year, as foreign exchange had an unfavorable impact of $14 million.

Operating income was $63 million, up 43 percent sequentially driven by incremental pricing, cost and productivity improvements. Operating income was 7 percent below the prior year, primarily driven by lower economic activity in China and weaker residential construction markets in North America. Operating margin of 11.6 percent improved 290 basis points sequentially.

Segment Information

Effective January 1, 2023, the Company realigned its business reporting structure and reorganized into two segments, Consumer & Specialties and Engineered Solutions. Following the realignment, the two new segments consist of the following businesses:

The Consumer & Specialties segment provides technologically enhanced products to consumer-driven end markets, including mineral-to-shelf 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.

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.

Prior-year reconciliations for these new segments are available in a Current Report on Form 8-K filed by the Company on March 15, 2023.

Consumer & Specialties segment sales were $297 million in the first quarter, up 9 percent sequentially and 5 percent over the prior year. On a constant currency basis, sales were up 7 percent from the prior year, as foreign exchange had an unfavorable impact of $7 million.

Household & Personal Care sales were $129 million, up 9 percent sequentially and 7 percent above the prior year on continued pricing actions and increased demand globally for our pet litter as well as strong demand for edible-oil purification products. Specialty Additives sales were $168 million, up 8 percent sequentially and 3 percent over the prior year, primarily driven by higher pricing, which offset lower volumes in residential construction. In addition, the Company announced three long-term precipitated calcium carbonate (PCC) customer agreements in Asia totaling 180,000 tons per year expected to be in operation in late 2023 and early 2024.

Segment operating income was $32 million, which reflected a significant sequential improvement and was the same level as the prior year. Operating margin was 10.8 percent, up 470 basis points sequentially and 60 basis points below the prior year. The segment benefited from pricing actions and productivity improvements to continue to drive margin recovery.

Engineered Solutions segment sales were $249 million in the first quarter, up 6 percent sequentially and 6 percent above the prior year. On a constant currency basis, sales were up 9 percent over the prior year, as foreign exchange had an unfavorable impact of $7 million.

High-Temperature Technologies sales were $179 million, an increase of 5 percent, both sequentially and over the prior year driven by strong demand in North America for foundry and refractory products, which offset weaker foundry product demand in China. Environmental & Infrastructure sales were $70 million, up 9 percent sequentially and 7 percent above the prior year on higher pricing and strong demand for water remediation solutions.

Segment operating income was $35 million, 11 percent higher sequentially due to improved mining and operating conditions, and 5 percent lower than the prior year primarily driven by lower profits from the China foundry market. Operating margins represented 14.2 percent, an increase of 70 basis points sequentially.

Company to Host 2023 Investor Day

The Company will host an Investor Day on Wednesday, May 24th at 8:30 am EST at the New York Stock Exchange.

“Minerals Technologies has transformed over the past 5 years into a more balanced portfolio of businesses poised for long-term sustainable growth. Our 2023 Investor Day will provide details on each of our businesses, their market positions, and growth and profit drivers enabled by the company’s innovative technologies and high-performance culture. We will outline how this new operating structure positions us to create long-term value for our stakeholders,” said Mr. Dietrich.

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Minerals Technologies will host a conference call tomorrow, April 28, 2023, 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 April 28, 2023.

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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; 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; claims for legal, environmental and tax matters or product stewardship issues; the continuing effects of the COVID-19 pandemic and the resulting preventative measures; 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 2022 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 $2.1 billion in 2022. For further information, please visit our website at www.mineralstech.com.

Source: Minerals Technologies Inc.