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AMCOL International Corp. Reports Operating Results (10-Q)

November 07, 2012 | About:
10qk

10qk

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AMCOL International Corp. (ACO) filed Quarterly Report for the period ended 2012-09-30.

Amcol International Corporation has a market cap of $979.9 million; its shares were traded at around $31.28 with a P/E ratio of 14.7 and P/S ratio of 1. The dividend yield of Amcol International Corporation stocks is 2.6%. Amcol International Corporation had an annual average earning growth of 12.3% over the past 10 years. GuruFocus rated Amcol International Corporation the business predictability rank of 3-star.

Highlight of Business Operations:

We measure sales fluctuations by the relevant components: organic, acquisitions, and foreign currency translation. Fluctuation due to foreign currency translation is measured as the change in revenues resulting from differences in currency exchange rates between periods. If applicable, fluctuation due to acquisitions is measured as the change in revenues resulting from acquired businesses within the first year (twelve consecutive months) we own them. Any remaining fluctuation is due to organic components. The following table details the consolidated sales fluctuations by components over the prior year s comparable period:

Overall organic growth was dampened 19% by unfavorable foreign currency exchange rate movements. Selling price increases comprise 53% of the organic increase in sales with increased volumes comprising the remainder. Our metalcasting product line revenues increased due to increased demand for our products following on from demand for automobile, heavy equipment, construction, and energy related castings. We have also seen significant increases in basic minerals products due to increased sales of drilling additives, largely in our domestic market due to increased drilling activity especially in the first two quarters of the year. Although selling price increases do outweigh cost increases, increased volumes contributed the most to increased gross profit and gross profit margins. SG&A expenses have increased due to increased compensation and headcount required to support the growth in sales, but they have increased at a lower rate as compared to the rate of growth in sales; this explains the increase in operating profit and operating profit margins.

Although selling price increases do outweigh cost increases, increased volumes contributed the most to increased gross profit and gross profit margins. SG&A expenses have increased due to increased compensation and headcount required to support the growth in sales, but they have increased at a lower rate as compared to the rate of growth in sales; this explains the increase in operating profit and operating profit margins.

Read the The complete Report

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