Minerals Technologies Inc. has a market cap of $1.06 billion; its shares were traded at around $58.47 with a P/E ratio of 19.1 and P/S ratio of 1.2. The dividend yield of Minerals Technologies Inc. stocks is 0.3%.MTX is in the portfolios of Chuck Royce of Royce& Associates, Bruce Kovner of Caxton Associates, Jim Simons of Renaissance Technologies LLC, George Soros of Soros Fund Management LLC.
Highlight of Business Operations:Consolidated sales for third quarter of 2010 increased 7% to $249.8 million from $234.3 million in the prior year. Income from operations was $25.0 million as compared with $12.8 million in the prior year. Net income was $16.7 million as compared with $8.9 million in the prior year.
Worldwide net sales in the third quarter of 2010 increased 7% from the previous year to $249.8 million from $234.3 million. Foreign exchange had an unfavorable impact on sales of approximately $3.7 million or 2 percentage points of decline. Sales in the Specialty Minerals segment, which includes the PCC and Processed Minerals product lines, increased 2% to $166.1 million as compared with $162.5 million for the same period in 2009. Sales in the Refractories segment increased 17% to $83.7 million as compared with $71.8 million in the prior year.
Worldwide net sales of PCC, which is primarily used in the manufacturing process of the paper industry, decreased 1% in the third quarter to $136.8 million from $137.5 million in the prior year. Foreign exchange had an unfavorable impact on sales of $2.3 million or approximately 2 percentage point of decline. Paper PCC sales decreased 2% to $121.7 million in the third quarter of 2010 from $124.1 million in the prior year. Paper PCC volumes grew 1%. Sales of Specialty PCC increased 13% to $15.1 million from $13.4 million in the prior year. This increase was primarily due to higher volumes.
Net sales in the Refractories segment in the third quarter of 2010 increased 17% to $83.7 million from $71.8 million in the prior year. Foreign exchange had an unfavorable impact on sales of $1.4 million or approximately 2 percentage points. Sales of refractory products and systems to steel and other industrial applications increased 15% to $65.4 million from $56.8 million. Sales of metallurgical products within the Refractories segment increased 22 percent to $18.3 million as compared with $15.0 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.
Cost of goods sold was 79.1% of sales as compared with 81.2% of sales in the prior year. Production margin increased $8.2 million, or 19% as compared with a 7% increase in sales. Volumes increased in all product lines as economic conditions improved from prior year levels. The businesses also increased their productivity levels and derived continued benefits from our restructuring programs. In the Specialty Minerals segment, production margin increased 4%, or $1.2 million, as compared with a 2% increase in sales. Volume had a favorable impact on production margin of $3.1 million as compared to prior year in both the PCC and Processed Minerals product lines. This segment also reflected cost savings of $0.8 million, incremental benefits derived from our announced restructuring programs of $0.6 million and lower raw material costs of $0.6 million. This was partially offset by price concessions of $3.1 million. In the Refractories segment, production margin increased over 63%, or $7.0 million as compared with a 17% increase in sales. Production margin was favorably affected by increased volumes of $4.8 million, restructuring savings of $2.1 million, and lower raw materials costs of $1.0 million.
The Company expected annualized savings of $16 million to $20 million relating to its 2009 restructuring program of which approximately $10.0 million relates to lower compensation and related expense savings and $5.0 million relates to annualized pretax depreciation savings. The Company realized $3.3 million ($13.8 million annualized) in compensation and related expense savings and $1.2 million ($5.0 million annualized) in depreciation savings in the third quarter of 2010.
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