Minerals Technologies Inc. Reports Operating Results (10-Q)
Minerals Technologies Inc. has a market cap of $980.6 million; its shares were traded at around $52.17 with a P/E ratio of 23.5 and P/S ratio of 1.1. The dividend yield of Minerals Technologies Inc. stocks is 0.4%.MTX is in the portfolios of Jim Simons of Renaissance Technologies LLC, Bruce Kovner of Caxton Associates, George Soros of Soros Fund Management LLC, Chuck Royce of Royce& Associates.
Highlight of Business Operations: Consolidated sales for the second quarter of 2010 increased 23% to $255.8 million from $208.6 million in the prior year. Income from operations was $27.5 million as compared with a loss of $41.6 million in the prior year. Included in loss from operations in the prior year was an impairment of assets charge of $37.5 million and restructuring charges of $9.6 million. Net income was $19.0 million as compared with a net loss of $40.9 million in the prior year.
The Company continues to have a very strong balance sheet. Cash, cash equivalents and short-term investments were more than $345 million. The impact of foreign exchange on cash and cash equivalents was a decline of $17.8 million due to the stronger dollar. Our cash flows from operations were $75.5 million, of which approximately $42 million was generated in the second quarter. We have available credit lines of $177 million, our debt to equity ratio was 12%, and our current ratio was 4.1.
Worldwide net sales in the second quarter of 2010 increased 23% from the previous year to $255.8 million from $208.6 million. Foreign exchange had a favorable impact on sales of approximately $2.9 million or 1 percentage point of growth. Sales in the Specialty Minerals segment, which includes the PCC and Processed Minerals product lines, increased 11% to $168.2 million as compared with $152.0 million for the same period in 2009. Sales in the Refractories segment increased 55% from the previous year to $87.6 million.
Worldwide net sales of PCC, which is primarily used in the manufacturing process of the paper industry, increased 8% in the second quarter to $138.4 million from $127.7 million in the prior year. Foreign exchange had a favorable impact on sales of $1.7 million or approximately 1 percentage point of growth. Paper PCC sales increased 7% to $123.2 million in the second quarter of 2010 from $115.6 million in the prior year. Paper PCC volumes grew in all regions. Sales of Specialty PCC increased 26% to $15.2 million from $12.1 million in the prior year. This increase was primarily due to higher volumes.
Net sales in the Refractories segment in the second quarter of 2010 increased 55% to $87.6 million from $56.6 million in the prior year. Foreign exchange had a favorable impact on sales of $1.1 million or approximately 1 percentage points of growth. Sales of refractory products and systems to steel and other industrial applications increased 46% to $68.3 million from $46.7 million. Sales of metallurgical products within the Refractories segment increased 95 percent to $19.3 million as compared with $9.9 million in the same period last year. The increases in all product lines within this segment are driven by higher worldwide volumes as this segment had been severely affected by the downturn in the steel industry in the prior year.
Net sales in the United States increased 25% to $ 138.6 million in the second quarter of 2010. International sales in the second quarter of 2010 increased 20% to $ 117.2 million, primarily due to higher worldwide volumes and the effects of foreign exchange.
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