SECURITIES AND EXCHANGE COMMISSION
SECURITIES AND EXCHANGE COMMISSION |
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[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
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For the quarterly period ended March 26, 2000 |
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OR |
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[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
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COMMISSION FILE NUMBER 1-3295 |
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MINERALS TECHNOLOGIES INC. |
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DELAWARE |
25-1190717 |
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(State or other jurisdiction of |
(I.R.S. Employer |
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405 Lexington Avenue, New York, New York 10174-1901 |
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(212) 878-1800 |
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Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15 (d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that registrant was required to file such reports) and (2) has been subject to such filing requirements for the past 90 days. |
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YES X |
NO |
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Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date. |
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CLASS |
OUTSTANDING AT April 21, 2000 |
MINERALS TECHNOLOGIES INC. |
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INDEX TO FORM 10-Q |
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Page No. |
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PART I. FINANCIAL INFORMATION |
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Item 1. |
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Financial Statements: |
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Condensed Consolidated Statement of Income for the three-month periods ended March 26, 2000 and March 28, 1999 |
3 |
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Condensed Consolidated Balance Sheet as of March 26, 2000 and December 31, 1999 |
4 |
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Condensed Consolidated Statement of Cash Flows for the three-month periods ended March 26, 2000 and March 28, 1999 |
5 |
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Notes to Condensed Consolidated Financial Statements |
6 |
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Independent Auditors' Report |
9 |
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Item 2. |
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Management's Discussion and Analysis of Financial Condition and Results of Operations |
10 |
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Item 3. |
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Quantitative and Qualitative Disclosures about Market Risk |
12 |
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PART II. OTHER INFORMATION |
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Item 1. |
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Legal Proceedings |
13 |
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Item 6. |
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Exhibits and Reports on Form 8-K |
13 |
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Signature |
14 |
(in thousands, except per share data) |
Three Months Ended |
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March 26, 2000 |
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March 28, 1999 |
Net sales.................................................................................... |
$ 154,655 |
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$ 148,576 |
Operating costs and expenses: |
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Cost of goods sold................................................................. |
106,874 |
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103,227 |
Marketing, distribution and administrative expenses................. |
18,356 |
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18,359 |
Research and development expenses....................................... |
5,890 |
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5,952 |
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Income from operations.............................................................. |
23,535 |
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21,038 |
Non-operating deductions, net.................................................... |
953 |
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1,277 |
Income before provision for taxes on income and minority interests |
22,582 |
|
19,761 |
Provision for taxes on income...................................................... |
7,081 |
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6,228 |
Minority interests........................................................................ |
476 |
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(198) |
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Net income................................................................................. |
$ 15,025 |
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$ 13,731 |
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Earnings per share: |
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Basic................................................................................ |
$ 0.72 |
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$ 0.63 |
Diluted............................................................................. |
$ 0.71 |
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$ 0.62 |
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Cash dividends declared per common share................................ |
$ 0.025 |
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$ 0.025 |
Shares used in the computation of earnings per share: |
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Basic............................................................................... |
20,792 |
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21,697 |
Diluted............................................................................. |
21,280 |
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22,304 |
(thousands of dollars) |
March 26, 2000* |
December 31, 1999** |
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Current assets |
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Cash and cash equivalents................................................. |
$ 13,254 |
$ 20,378 |
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Accounts receivable, net................................................... |
123,394 |
118,327 |
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Inventories....................................................................... |
59,161 |
67,427 |
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Other current assets......................................................... |
16,432 |
13,815 |
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Total current assets.................................................... |
212,241 |
219,947 |
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Property, plant and equipment, less accumulated depreciation |
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Other assets and deferred charges.......................................... |
25,104 |
27,188 |
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Total assets................................................................ |
$763,241 |
$769,131 |
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Current liabilities: |
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Short-term debt................................................................ |
$ 13,424 |
$ 13,439 |
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Accounts payable............................................................. |
36,069 |
46,703 |
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Other current liabilities...................................................... |
57,955 |
57,400 |
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Total current liabilities................................................. |
107,448 |
117,542
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Long-term debt..................................................................... |
75,643 |
75,238 |
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Other non-current liabilities................................................... |
94,223 |
91,315 |
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Total liabilities............................................................. |
277,314 |
284,095
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Shareholders' equity: |
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Common stock................................................................. |
2,572 |
2,571 |
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Additional paid-in capital.................................................. |
150,804 |
150,315 |
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Retained earnings.............................................................. |
541,527 |
527,022 |
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Accumulated other comprehensive loss.............................. |
(32,809) |
(28,865) |
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662,094 |
651,043 |
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Less treasury stock |
176,167 |
166,007 |
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Total shareholders' equity.......................................... |
485,927 |
485,036
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Total liabilities and shareholders' equity....................... |
$763,241 |
$769,131 |
Three Months Ended |
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(thousands of dollars) |
March 26, 2000 |
March 28, 1999 |
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Operating Activities |
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Net income..................................................................................................... |
$ 15,025 |
$ 13,731 |
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Adjustments to reconcile net income to net cash provided by operating activities: |
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Depreciation, depletion and amortization..................................................... |
15,047 |
14,050 |
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Other non-cash items................................................................................. |
2,788 |
1,991 |
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Net changes in operating assets and liabilities.............................................. |
(8,581) |
(3,004) |
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Net cash provided by operating activities......................................................... |
24,279 |
26,768 |
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Investing Activities |
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Purchases of property, plant and equipment..................................................... |
(22,403) |
(17,284) |
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Other investing activities, net............................................................................ |
312 |
(788) |
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Net cash used in investing activities.................................................................. |
(22,091) |
(18,072) |
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Financing Activities |
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Proceeds from issuance of long-term debt........................................................ |
379 |
4,600 |
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Repayment of debt.......................................................................................... |
-- |
(4,600) |
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Purchase of common shares for treasury.......................................................... |
(10,160) |
(12,250) |
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Other financing activities, net............................................................................ |
1,553 |
227 |
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Net cash used in financing activities.................................................................. |
(8,228) |
(12,023) |
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(1,084) |
(1,147) |
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(7,124) |
(4,474) |
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Cash and cash equivalents at beginning of period.............................................. |
20,378 |
20,697 |
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Cash and cash equivalents at end of period...................................................... |
$ 13,254 |
$ 16,223 |
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$ 2,248 |
$ 2,202 |
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$ 1,794 |
$ 763 |
(thousands of dollars) |
March 26, 2000 |
December 31, 1999 |
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Raw materials.................................... |
$19,252 |
$25,049 |
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Work in process................................ |
5,995 |
5,171 |
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Finished goods.................................. |
16,858 |
19,913 |
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Packaging and supplies...................... |
17,056 |
17,294 |
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Total inventories................................ |
$59,161 |
$67,427 |
(thousands of dollars) |
March 26, 2000 |
December 31, 1999 |
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Variable/Fixed Rate Industrial Development Revenue Bonds Due 2009......................................................... |
$ 4,000 |
$ 4,000 |
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Economic Development Authority Refunding Revenue Bonds Series 1999 Due 2010.......................................................... |
4,600 |
4,600 |
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Variable/Fixed Rate Industrial Development Revenue Bonds Due August 1, 2012.......... |
8,000 |
8,000 |
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Variable/Fixed Rate Industrial Development Revenue Bonds Series 1999 Due November 1, 2014.................................... |
8,200 |
8,200 |
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6.04% of Guarantied Senior Notes Due June 11, 2000............................................ |
13,000 |
13,000 |
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7.49% Guaranteed Senior Notes Due July 24, 2006.................................................... |
50,000 |
50,000 |
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Other borrowings....................................... |
1,267 |
877 |
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89,067 |
88,677 |
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Less: Current maturities.............................. |
13,424 |
13,439 |
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Long-term debt.......................................... |
$ 75,643 |
$ 75,238 |
Basic EPS |
Three Months Ended |
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(in thousands, except per share data) |
March 26, 2000 |
March 28, 1999 |
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Net income.............................................................. |
$ 15,025 |
$ 13,731 |
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Weighted average shares outstanding........................ |
20,792 |
21,697 |
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Basic earnings per share........................................... |
$ 0.72 |
$ 0.63 |
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Diluted EPS |
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Net income.............................................................. |
$ 15,025 |
$ 13,731 |
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Weighted average shares outstanding........................ |
20,792 |
21,697 |
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Dilutive effect of stock options.................................. |
488 |
607 |
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Weighted average shares outstanding, adjusted................................................................... |
21,280 |
22,304 |
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Diluted earnings per share......................................... |
$ 0.71 |
$ 0.62 |
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Three Months Ended |
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(thousands of dollars) |
March 26, 2000 |
March 28, 1999 |
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Net income.................................... |
$ 15,025 |
$ 13,731 |
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Other comprehensive income, net of tax: |
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Foreign currency translation adjustments |
(3,944) |
(21,769) |
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Unrealized holding loss, net of reclassification adjustments.............. |
-- |
(86) |
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Comprehensive income (loss).......... |
$ 11,081 |
$ (8,124) |
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March 26, 2000 |
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December 31, 1999 |
Foreign currency translation adjustments...... |
$ (31,808) |
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$ (27,864) |
Minimum pension liability adjustment........... |
(1,001) |
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(1,001) |
Accumulated other comprehensive loss........ |
$ (32,809) |
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$ (28,865) |
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NET SALES |
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(thousands of dollars) |
Three Months Ended |
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March 26, 2000 |
March 28, 1999 |
Specialty Minerals...................................... |
$111,021 |
$107,789 |
Refractories................................................ |
43,634 |
40,787 |
Total.................................................. |
$154,655 |
$148,576 |
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INCOME FROM OPERATIONS |
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(thousands of dollars) |
Three Months Ended |
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March 26, 2000 |
March 28, 1999 |
Specialty Minerals..................................... |
$16,784 |
$15,561 |
Refractories............................................... |
6,751 |
5,477 |
Total................................................. |
$23,535 |
$21,038 |
(thousands of dollars) |
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Three Months Ended |
Three Months Ended
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Income from operations for reportable segments................................................................... |
$ 23,535 |
$ 21,038 |
Non-operating deductions, net................................... |
953 |
1,277 |
Income before provision for taxes on income and minority interests........................................................ |
$ 22,582 |
$ 19,761 |
KPMG LLP |
INCOME AND EXPENSE ITEMS AS
A PERCENTAGE OF NET
SALES |
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March 26, 2000 |
March 28, 1999 |
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Net sales............................................................................... |
100.0% |
100.0% |
Cost of goods sold................................................................ |
69.1 |
69.5 |
Marketing, distribution and administrative expenses................ |
11.9 |
12.3 |
Research and development expenses..................................... |
3.8 |
4.0 |
Income from operations......................................................... |
15.2 |
14.2 |
Net income........................................................................... |
9.7% |
9.2% |
Minerals Technologies Inc. |
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By: |
/s/ Neil M. Bardach |
Vice President - Finance and Chief Financial Officer; Treasurer, (principal finance officer) |
Very truly yours, |
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KPMG LLP |