NEW YORK, July 25, 2024 – Minerals Technologies Inc. (NYSE: MTX) (“MTI” or “the Company”) today reported earnings per share for the second quarter ended June 30, 2024 of $0.61 or $1.65 excluding special items, a record for MTI and an increase of 26% over prior year.
“We continue to deliver record results with margins ahead of target. Healthy demand for our products and solutions across the majority of our markets highlights the value we deliver to our customers through our core technologies. Our balanced portfolio of industrial and consumer businesses is operating as expected and continues to offer broad-based long-term growth opportunities,” said Douglas T. Dietrich, Chairman and Chief Executive Officer.
Worldwide net sales were $541 million, 1 percent higher versus the prior year on an underlying basis or down 2 percent as reported. Underlying growth in the Consumer & Specialties segment offset lower sales in Engineered Solutions.
Reported operating income was $51 million. Operating income excluding special items was $85 million, a record for MTI, up 20 percent over the prior year and represented 15.7 percent of sales. The strong second quarter performance was driven by favorable volume and mix, productivity improvements and a disciplined approach to pricing and cost control.
The Company recorded special items of $34.2 million in the second quarter, including a provision of $30 million related to a committed line of credit to BMI OldCo (f/k/a Barretts Minerals Inc.) to support the continued progress of its bankruptcy proceeding and associated mediation.
Second Quarter 2024 Segment Results
Consumer & Specialties segment sales were $284 million in the second quarter, up 3 percent on an underlying basis.
Household & Personal Care sales were $127 million, up 1 percent from the prior year. Growth in several consumer-oriented products offset temporarily lower volumes in pet care due to some product change-over timing. Specialty Additives sales were $158 million and grew 4 percent on an underlying basis.
Segment operating income was $44 million, a 29 percent improvement over the prior year driven by higher volumes, improved input costs and strong operating performance. Operating margin was 15.4 percent, a 370 basis point improvement over the prior year.
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 $257 million in the second quarter, down 2 percent from the prior year.
High-Temperature Technologies sales were $185 million, up 1 percent from the prior year. Environmental & Infrastructure sales were $72 million, 8 percent lower than the prior year due to slow commercial construction markets combined with fewer large environmental remediation projects.
Segment operating income was $45 million, up 16 percent from the prior year, driven by higher volumes and favorable product mix in High-Temperature Technologies. Operating margin was very strong at 17.4 percent of sales, a 270 basis point improvement over prior year.
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.
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Minerals Technologies will host a conference call tomorrow, July 26, 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 July 26, 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.
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