Specialty mineral company Minerals Technologies, Inc. (MTX) reported Thursday a 53% year-over-year drop in profit for the third quarter, hurt by lower margins as well as a 21% decline in quarterly sales. The results also reflected volume decrease across all businesses. The company also noted that it is ahead of schedule to meet the projected $16 million to $20 million in annualized savings in 2010 through the restructuring program announced in July.
In a statement, chairman and chief executive officer, Joseph Muscari said, "Our financial results improved significantly over the second quarter, with sales increasing across all of our major product lines, reflecting our best performance since the recession severely affected our operations in the fourth quarter of last year. In addition, the restructuring program we announced in July is ahead of schedule to meet the projected $16 million to $20 million in annualized savings in 2010, and we have achieved near-term productivity improvements to better position the company for improved profitability."
The New York-based company reported net income of $8.90 million or $0.47 per share for the third quarter, down from $19.01 million or $1.00 per share in the year-ago quarter. Income from continuing operations dropped to $9.53 million or $0.46 per share from $16.94 million or $0.85 per share in the prior-year quarter.
Excluding special items, net income for the quarter dropped to $9.9 million or $0.53 per share from $20.1 million or $1.06 per share a year ago. On average, 4 analysts polled by Thomson Reuters expected the company to report profit of $0.27 per share for the quarter. Analysts' estimates typically exclude special items. Net sales for the quarter declined 21% to $234.26 million from $294.92 million in the same quarter last year, reflecting volume decreases in all businesses as well as negative currency impact of 3 percentage points.
Income from operations for the third quarter dropped 44% to $12.82 million from $22.98 million in the prior-year quarter. Excluding special items, operating income of $14.2 million declined 49% from the $28.0 million recorded last year.
Production margin for the quarter declined 26% to $43.99 million from $59.44 million in the year-ago quarter. Restructuring and other charges were $1.44 million, a sharp 71% lower than $5.01 million a year ago. Last year, the company recorded impairment of assets of $37.52 million.
For the nine-month period, the company recorded a net loss of $27.85 million or $1.49 per share, compared to net income of $59.55 million or $3.12 per share in the prior-year period. Loss from continuing operations was $21.91 million or $1.31 per share, compared to income of $54.02 million or $2.71 per share last year.
Excluding special items, net income for the period dropped to $17.4 million or $0.93 per share from $57.8 million or $3.03 per share in the year-ago period.
Net sales for the year-to-date period dropped 25% to $651.11 million from $872.23 million in the same period last year.
"Our performance in 2009 clearly reflects the effects of the economic downturn and worldwide recession that accelerated in the fourth quarter of 2008. The actions we took throughout 2008 prepared us for the difficult economic environment in 2009. We were able to respond quickly and effectively to reduce costs and to conserve capital while continuing to focus on our new product development and global growth initiatives," Muscari added.
MTX closed Thursday's regular trading session at $48.84, up $0.34 or 0.70% on a volume of 0.10 million shares.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.