Thursday, Minerals Technologies Inc. (MTX), a manufacturer of specialty minerals and synthetic mineral products, reported higher adjusted four-quarter earnings that topped analysts' estimates helped by improvements in its end markets.
Excluding items, earnings for the quarter rose to $11.7 million from $7.6 million in the corresponding period last year. Earnings per share rose 51% to $0.62 from $0.41 per share in the prior year and came in above three analysts' estimate of $0.51 per share projected by Thomson Reuters. Analysts ' estimates typically exclude special items.
Net income declined 29% to $4.1 million or $0.22 per share from $5.7 million, or $0.31 per share, in the corresponding period last year.
Worldwide sales grew 7% to $256.2 million from $240 million in the same period in 2008 as a result of foreign exchange gains and slight volume increases in all product lines. Foreign exchange had a favorable impact on sales of about $11.0 million.
Excluding special items, operating income rose 84% to $17.3 million from $9.4 million recorded in the year-ago quarter. As reported, income from operations was $4.5 million compared to $3.1 million in the prior year.
Precipitated Calcium Carbonate or PCC sales were $146.3 million, up 6% from $137.4 million recorded in the year-ago period on a volume increase of about 1% and the favorable impact of foreign exchange. Processed Minerals products sales increased 7% to $24 million from $22.4 million in the same period last year on volume increases of 5 percent.
Refractories segment sales advanced 7% to $85.9 million from the $80.2 million in the same period in 2008. The Refractory segment operating income rose to $3.3 million, excluding special items, from $1.6 million in the prior year period, helped by restructuring program and improved market conditions.
During the fourth quarter, the company completed construction and started operation of a satellite PCC facility in India. The company said it will construct a PCC production facility in Superior, Wisconsin, that will be built on a site owned by Graymont WI, a lime supplier, and is expected to be in operation in the second quarter of 2011.
Joseph Muscari, chairman and chief executive officer, said, " the restructuring program we announced in July is on track to provide annualized savings of between $16 million and $20 million upon completion; and, we continue to improve our productivity, which better positions us for increased profitability."
For the twelve-month period, net loss was $23.8 million or $1.27 per share compared to net income of $65.3 million or $3.44 per share for 2008. Excluding special items, earnings were $1.55 per share as compared with $3.44 per share in the prior year. Worldwide sales declined to $907.3 million from $1.1 billion in 2008.
MTX declined $0.35 or 0.74% and closed Thursday's regular trading at $47.14.
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