Minerals Technologies Reports Third Quarter Earnings per Share of $0.63, A 17-Percent Increase over Prior Year

ID: 1278407
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(Thomson Reuters ONE) -


Company Achieves Record Operating Income of $32.8 million;
Up 15% over Prior Year and 12.9% of Sales
----------
Highlights:

* Sales Increased 3% over Prior Year-Underlying Sales Increased 4%, excluding
Foreign Exchange
* Record Operating Income for Specialty Minerals Segment-up 12% over Prior
Year; 15.5% Operating Margin
* New Satellite PCC Plants Contribute to Record Performance
* Two New Satellite Contracts Signed During Quarter
* Fulfill(TM) E-325 Technology Commercial Agreement in India
* New, Two-Year $150 Million Stock Repurchase Program Authorized in Quarter


NEW YORK, October 31- Minerals Technologies Inc. (NYSE: MTX) today reported
third quarter diluted earnings per common share of $0.63 compared with $0.54 per
share in the same period of 2012, a 17-percent increase.

Income from operations increased 15-percent over the same period last year to a
record $32.8 million from $28.6 million. The improvement in operating income
occurred in both the Specialty Minerals and Refractories Segments. This was
driven by the contribution from new satellite precipitated calcium carbonate
(PCC) plants, sales growth in ground calcium carbonate (GCC) and metallurgical
wire, higher productivity, expense control and pricing improvements. The company
also generated approximately $34.0 million in cash flow from operations, and
return on capital was 10.1 percent, an increase of 11 percent from the same
quarter in 2012. During the third quarter, the company repurchased $23.8 million
in shares to complete the $75 million share repurchase program authorized in
2011. On September 19, the company's Board of Directors authorized a new two-
year $150 million share repurchase program.

"We achieved record operating income of $32.8 million," said Robert S.


Wetherbee, president and chief executive officer.  "This solid financial
performance is a result of continued momentum with our two major growth
initiatives-geographic expansion and new product development. We signed two new
contracts to build satellite PCC plants-one in China and the second in Europe.
Also, a paper mill in India recently agreed to adopt our Fulfill(TM) E-325
technology to increase PCC fill rates to reduce the use of more expensive
fiber."

Third quarter worldwide underlying sales increased 4 percent to $254.2 million
from the  prior year primarily due to increased sales in our Processed Minerals
and North America Specialty PCC product lines, the re-start of the satellite PCC
facility in Alizay, France, the ramp-up of new satellite PCC plants in India and
Thailand, and increased sales in metallurgical wire. Including the effect of
foreign exchange, sales increased 3 percent.

Third quarter worldwide underlying sales for the Specialty Minerals segment,
which includes the PCC and Processed Minerals product lines, increased 4 percent
over the third quarter of 2012 to $167.4 million. Including the effect of
foreign exchange, sales increased 3 percent. Income from operations increased
12 percent to $26.0 million from $23.3 million in the same period in 2012. The
growth in operating income was due to volume and margin improvement in the
Processed Minerals product line, strong contributions from the new Asian
satellite PCC plants and the re-start of the Alizay operation.

Worldwide underlying sales of PCC, used primarily in the manufacturing processes
of the paper industry, increased 2 percent to $135.9 million from the third
quarter of 2012. Underlying sales of Paper PCC grew 2 percent over the prior
year to $119.3 million. Including foreign exchange, sales of both PCC and Paper
PCC increased 1 percent.  North America Specialty PCC sales increased 9 percent
over the same period in 2012.

During the quarter, the company signed contracts for two new satellite PCC
plants. The first was a joint venture agreement with Nanning Jindaxing Paper
Industry Co. Ltd. for the construction of a 45,000-metric ton satellite PCC
plant at Jindaxing Paper's papermaking facility in Guangxi Province, China. This
new satellite facility, which will produce PCC as a filler pigment for Jindaxing
Paper, is expected to become operational in the fourth quarter of 2014.
 Minerals Technologies also signed an agreement for a 14,000-metric ton
satellite PCC plant in Europe with an established paper company that wished to
remain unnamed for competitive reasons.  The satellite facility, which will also
produce PCC as a filler pigment, is expected to become operational in the fourth
quarter of 2014.

Recently, the company announced a commercial agreement with a paper mill in
India to deploy its FulFill(®) high-filler technology. This agreement is with a
papermaker that wished to remain unnamed. The company now has 14 commercial
agreements with papermakers around the globe for FulFill(®) E-325. The
FulFill(®) brand of high-filler technologies offers papermakers decreased
dependency on more expensive natural fiber, and allows papermakers to increase
loading levels of PCC by three to five points, and increases PCC usage between
15 to 20 percent.

Processed Minerals products third quarter sales increased 10 percent over the
prior year to $31.5 million as Talc sales grew 8 percent and GCC sales increased
12 percent. Processed Minerals products serve the residential and commercial
construction as well as automotive markets.

Third quarter 2013 underlying sales in the Refractories segment, whose products
are used primarily in the steel market, increased 4 percent to $86.8 million.
Including the effect of foreign exchange, sales increased 2 percent. Refractory
Products sales increased slightly to $66.3 million from $66.0 million in the
prior year. Metallurgical products sales increased 10 percent to $20.5 million
from $18.7 million recorded in the same period in 2012. The Refractory segment
recorded operating income of $8.4 million, a 17-percent increase from the $7.2
million in the third quarter of 2012. This increase was primarily the result of
a 10-percent increase in metallurgical wire sales and a 12-percent sales
increase in refractory products sales in Europe and the Middle East, as well as
improved productivity.

"We posted record financial performance for both the quarter and the nine
months," said Mr. Wetherbee. "This performance track is based upon growth in
sales and income, strong cash flow and improved operational efficiencies. More
essential for the long term, however, is the momentum we are seeing in our major
growth strategies of geographic expansion and new product innovation. We expect
to continue to improve shareholder value as we build upon this strong
performance."
----------
Minerals Technologies has scheduled an analyst conference call for Friday,
November 1, 2013 at 11:00 a.m. to discuss operating results for the third
quarter. The conference call will be broadcast over the company's website,
www.mineralstech.com.
####
----------
This press release may contain forward-looking statements, which describe or are
based on current expectations; in particular, statements of anticipated changes
in the business environment in which the company operates and in the company's
future operating results. Actual results may differ materially from these
expectations. In addition, any statements that are not historical fact
(including statements containing the words "believes," "plans," "anticipates,"
"expects," "estimates," and similar expressions) should also be considered to be
forward-looking statements.  The company undertakes no obligation to publicly
update any forward-looking statement, whether as a result of new information,
future events, or otherwise. Forward-looking statements in this document should
be evaluated together with the many uncertainties that affect our businesses,
particularly those mentioned in the risk factors and other cautionary statements
in our 2012 Annual Report on Form 10-K and in our other reports filed with the
Securities and Exchange Commission.

Contact:
Rick B. Honey
(212) 878-1831



CONDENSED CONSOLIDATED STATEMENTS OF INCOME

MINERALS TECHNOLOGIES INC. AND SUBSIDIARY COMPANIES

(in thousands, except per share data)

 (unaudited)



%
        Quarter Ended   % Growth   Nine Months Ended   Growth
-------------------------------- -------------- ----------------------- --------
Sept. Sept. Sept. Sept.
        29,   June 30,   30,             29,   30,

Prior Prior Prior
        2013   2013   2012   Qtr. Year   2013   2012   Year



Net sales $ 254,192 $ 256,844 $ 247,803   (1)%   3%   $ 761,549 $ 753,719   1%



Cost of goods
sold   194,272   197,995   192,180   (2)%   1%     586,897   585,691   0%



Production
margin   59,920   58,849   55,623   2%   8%     174,652   168,028   4%



Marketing and
administrative
expenses   21,861   21,644   21,953   1%   (0)%     66,318   66,256   0%

Research and
development
expenses   5,302   4,826   5,105   10%   4%     14,946   15,178   (2)%



Income from
  operations   32,757   32,379   28,565   1%   15%     93,388   86,594   8%



Non-operating
deductions -
net   (1,234)   (1,472)   (650)   (16)%   90%     (2,572)   (2,016)   28%



Income from
continuing
operations,
  before tax   31,523   30,907   27,915   2%   13%     90,816   84,578   7%



Provision for
taxes on income   8,952   8,221   8,245   9%   9%     25,219   24,999   1%



Income from
continuing
operations,
  net of tax   22,571   22,686   19,670   (1)%   15%     65,597   59,579   10%



Loss from
discontinued
operations,
  net of tax   (21)   (4,947)   (487)   *   *     (5,704)   (1,549)   *



Consolidated
  net income   22,550   17,739   19,183   27%   18%     59,893   58,030   3%



Less: Net income
attributable
to non-
controlling
interests   686   619   553   11%   24%     2,152   1,653   30%



Net Income
attributable
to
Minerals
Technologies
  Inc. (MTI) $ 21,864 $ 17,120 $ 18,630   28%   17%   $ 57,741 $ 56,377   2%



Weighted average
number of
common shares
outstanding:



  Basic   34,615   34,799   35,280             34,803   35,388



  Diluted   34,881   35,031   35,466             35,054   35,550



Earnings per
share
attributable to
MTI:





  Basic:

Income from
continuing
operations
attributable
    to MTI $ 0.63 $ 0.63 $ 0.54   0%   17%   $ 1.82 $ 1.64   11%

Loss from
discontinued
operations
attributable
    to MTI   0.00   (0.14)   (0.01)   *   *     (0.16)   (0.04)   *

Net Income
attributable
to MTI
common
    shareholders $ 0.63 $ 0.49 $ 0.53   29%   19%   $ 1.66 $ 1.60   4%



  Diluted:

Income from
continuing
operations
attributable
    to MTI $ 0.63 $ 0.63 $ 0.54   0%   17%   $ 1.81 $ 1.63   11%

Loss from
discontinued
operations
attributable
    to MTI   0.00   (0.14)   (0.01)   *   *     (0.16)   (0.04)   *

Net Income
attributable
to MTI
common
    shareholders $ 0.63 $ 0.49 $ 0.53   29%   19%   $ 1.65 $ 1.59   4%



Cash dividends
declared per
common share $ 0.05 $ 0.05 $ 0.025           $ 0.15 $ 0.075



* Percentage not
meaningful






MINERALS TECHNOLOGIES INC. AND SUBSIDIARY COMPANIES

NOTES TO CONDENSED CONSOLIDATED STATEMENTS OF INCOME





1) For comparative purposes, the quarterly periods ended September 29, 2013,
June 30, 2013 and September 30, 2012 each consisted of 91 days.  The nine month
periods ended September 29, 2013 and September 30, 2012 consisted of 272 days
and 274 days, respectively.



2) This press release contains a measure of underlying sales growth year-over-
year excluding the impact of foreign exchange.  This is a non-GAAP measure.  We
believe this measure provides investors with a more complete understanding of
underlying sales trends by providing sales growth on a a consistent basis.  The
reconciliation of reported sales growth to underlying sales growth for the
third quarter is as follows:
+-------------+-----------+--------------+------------+
|  |    |  Unfavorable |    |
| | | | |
|  |  Reported |   Foreign |  Underlying|
| | | | |
|  |  Net Sales|  Exchange |  Sales |
| | | | |
|  |  Growth |  Impact |  Growth |
+-------------+-----------+--------------+------------+
|Specialty |  | | |
|Minerals | | | |
|Segment | 2.6%|  1.0%|  3.6%|
| +-----------+--------------+------------+
|Refractories |  | | |
|Segment | 2.5%|  1.6%|  4.1%|
| +-----------+--------------+------------+
|Minerals | | | |
|Technologies | | | |
|Inc. |  2.6%|  1.1%|  3.7%|
+-------------+-----------+--------------+------------+


3) Free cash flow is defined as cash flow from continuing operations less
capital expenditures.  The following is a presentation of the Company's non-
GAAP free cash flow for the quarterly periods ended September 29, 2013, June
30, 2013  and September 30, 2012  and the nine month periods ended September
29, 2013 and September 30, 2012 and a reconciliation to cash flow from
operations for such periods.  The Company's management believes this non-GAAP
measure provides meaningful supplemental information as management uses this
measure to evaluate the Company's ability to maintain capital assets, satisfy
current and future obligations, repurchase stock, pay dividends and fund future
business opportunities.  Free cash flow is not a measure of cash available for
discretionary expenditures since the Company has certain non-discretionary
obligations such as debt service that are not deducted from the measure.  The
Company's definition of free cash flow may not be comparable to similarly
titled measures reported by other companies.

    Quarter Ended       Nine Months Ended
--------------------------------------- -------------------
(millions of         Sept. Sept.
dollars) Sept. 29,   June 30,   Sept. 30, 29,   30,

    2013   2013   2012       2013   2012

Cash flow
from
continuing
operations $ 33.5 $ 33.9 $ 40.5 $ 93.4 $ 107.3

Capital
expenditures 10.4 13.0 14.0 32.0 37.8

Free cash
flow   $ 23.1 $ 20.9 $ 26.5 $ 61.4 $ 69.5





4) The following table reflects the
components of non-operating income and
deductions:



(millions of
dollars)   Quarter Ended       Nine Months Ended
--------------------------------------- -------------------
Sept. Sept.
    Sept. 29,   June 30,   Sept. 30,       29,   30,

    2013   2013   2012       2013   2012


Interest
income $ 0.7 $ 0.7 $ 0.7     $ 2.1 $ 2.5


Interest
expense   (0.8)   (0.8)   (0.8)       (2.6)   (2.4)


Foreign
exchange
losses   (0.9)   (1.3)   (0.1)       (1.5)   (0.8)


Other
deductions   (0.2)   (0.1)   (0.4)       (0.6)   (1.3)


 Non-
operating
deductions,
net $ (1.2) $ (1.5) $ (0.6)     $ (2.6) $ (2.0)





5) During the second quarter of 2013, the Company ceased operations at its
Paper PCC merchant plant in Walsum, Germany and reclassified such operations as
discontinued.

The following table details selected financial information for the Walsum plant
included within discontinued operations in the Consolidated Statements of
Income:

(millions of
dollars)   Quarter Ended       Nine Months Ended
--------------------------------------- -------------------
Sept. Sept.
    Sept. 29,   June 30,   Sept. 30,       29,   30,

    2013   2013   2012       2013   2012

Net Sales $ 0.0 $ 0.8 $ 2.5     $ 1.7 $ 7.7



Production
Margin   0.0   (1.2)   (0.6)       (2.3)   (1.7)

Total
Expenses   0.0   0.2   0.1       0.4   0.6

Facility
closure costs   0.0   5.9   0.0       5.9   0.0



Loss from
operations $ 0.0 $ (7.3) $ (0.7)     $ (8.6) $ (2.3)

Benefit for
taxes on
income   0.0   (2.4)   (0.2)       (2.9)   (0.7)



Loss from
discontinued
operations,
net of tax $ 0.0 $ (4.9) $ (0.5)     $ (5.7) $ (1.6)





6) The analyst conference call to discuss operating results for the second
quarter is scheduled for Friday, November 1, 2013 at 11:00 am and will be
broadcast over the Company's website (www.mineralstech.com).  The broadcast
will remain on the Company's website for no less than one year.


SUPPLEMENTARY DATA

MINERALS TECHNOLOGIES INC. AND SUBSIDIARY COMPANIES

(millions of dollars)

(unaudited)



Nine Months  %
    Quarter Ended   % Growth     Ended   Growth
-------------------------- --------------- ----------------- -------
Sept. June Sept. Sept. Sept.
SALES DATA   29,   30,   30,             29,   30,

Prior Prior Prior
    2013   2013   2012   Qtr   Year     2013   2012   Year



United States $ 142.1 $ 142.8 $ 138.4   (0)%   3%   $ 424.7 $ 427.4   (1)%

International   112.1   114.0   109.4   (2)%   2%     336.8   326.3   3%

      Net
Sales $ 254.2 $ 256.8 $ 247.8   (1)%   3%   $ 761.5 $ 753.7   1%



Paper PCC $ 119.3 $ 118.3 $ 118.1   1%   1%   $ 357.9 $ 353.9   1%

Specialty PCC   16.6   17.3   16.4   (4)%   1%     50.8   49.8   2%

PCC Products $ 135.9 $ 135.6 $ 134.5   0%   1%   $ 408.7 $ 403.7   1%



Talc $ 12.8 $ 13.0 $ 11.9   (2)%   8%   $ 38.2 $ 37.1   3%

Ground
Calcium
Carbonate   18.7   19.7   16.7   (5)%   12%     55.6   52.9   5%

Processed
Minerals
Products $ 31.5 $ 32.7 $ 28.6   (4)%   10%   $ 93.8 $ 90.0   4%



Specialty
Minerals
Segment $ 167.4 $ 168.3 $ 163.1   (1)%   3%   $ 502.5 $ 493.7   2%



Refractory
products $ 66.3 $ 67.2 $ 66.0   (1)%   0%   $ 195.9 $ 200.5   (2)%

Metallurgical
Products   20.5   21.3   18.7   (4)%   10%     63.1   59.5   6%

Refractories
Segment $ 86.8 $ 88.5 $ 84.7   (2)%   2%   $ 259.0 $ 260.0   (0)%



       Net
Sales $ 254.2 $ 256.8 $ 247.8   (1)%   3%   $ 761.5 $ 753.7   1%





SEGMENT
OPERATING
INCOME DATA



Specialty
Minerals
Segment $ 26.0 $ 25.2 $ 23.3   3%   12%   $ 74.4 $ 66.9   11%



Refractories
Segment $ 8.4 $ 8.5 $ 7.2   (1)%   17%   $ 23.8 $ 25.0   (5)%



Unallocated
Corporate
Expenses $ (1.6) $ (1.3) $ (1.9)   23%   (16)%   $ (4.8) $ (5.3)   (9)%



Consolidated $ 32.8 $ 32.4 $ 28.6   1%   15%   $ 93.4 $ 86.6   8%





MINERALS TECHNOLOGIES INC. AND SUBSIDIARY COMPANIES

CONDENSED CONSOLIDATED BALANCE SHEETS







ASSETS



  (In Thousands of Dollars)

        September 29,   December 31,

        2013*   2012**



Current
assets:

  Cash & cash equivalents $ 469,654 $ 454,092

  Short-term investments   16,295   14,178

  Accounts receivable, net   207,221   193,328

  Inventories     90,309   84,569

  Prepaid expenses and other current assets   20,164   18,318

    Total current assets   803,643   764,485



  Property, plant and equipment   1,275,647   1,261,952

  Less accumulated depreciation   967,765   944,283

    Net property, plant & equipment   307,882   317,669



  Goodwill     64,683   65,829

  Other assets and deferred charges   50,654   63,206





    Total assets $ 1,226,862 $ 1,211,189





LIABILITIES AND SHAREHOLDERS' EQUITY



Current liabilities:

  Short-term debt $ 6,921 $ 7,111

  Current maturities of long-term debt   570   76,977

  Accounts payable   105,318   98,371

  Other current liabilities   63,835   67,639

    Total current liabilities   176,644   250,098



  Long-term debt   83,200   8,478

  Other non-current liabilities   134,744   138,894

    Total liabilities   394,588   397,470



  Total MTI shareholders' equity   808,979   790,411

  Non-controlling Interest   23,295   23,308

    Total shareholders' equity   832,274   813,719



Total liabilities and
    shareholders' equity $ 1,226,862 $ 1,211,189





* Unaudited

** Condensed from audited financial statements.



Q3 2013 Financials:
http://hugin.info/147757/R/1739835/584067.xls



This announcement is distributed by Thomson Reuters on behalf of
Thomson Reuters clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.

Source: Minerals Technologies Inc via Thomson Reuters ONE
[HUG#1739835]






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Date: 10/31/2013 - 17:02
Language: English
News-ID 1278407
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