- Minerals Technologies Inc. (MTX, Financial) announced a $215 million reserve for talc-related claims.
- Preliminary Q1 2025 sales stood at $492 million, below the guidance of $500 million.
- A new cost savings program aims for $10 million in annual efficiency improvements.
Minerals Technologies Inc. (MTX) has provided significant updates concerning its subsidiary's Chapter 11 proceedings and its preliminary financial results for the first quarter of 2025. The company has established a $215 million reserve to manage talc-related claims against BMI OldCo, including $30 million in debtor-in-possession financing approved by the U.S. Bankruptcy Court for the Southern District of Texas.
For Q1 2025, MTX reported preliminary sales of $492 million and an operating income of $63 million, missing its initial guidance of $500 million in sales and $70 million in operating income. The shortfall has been attributed to extended sluggish demand and customer inventory adjustments.
In response to the financial challenges, MTX initiated a cost savings program targeting $10 million in annual efficiency savings, largely through workforce reductions. This initiative, which included a $5.5 million restructuring charge for severance costs, is expected to reach full run rate savings by early 2026.
The company noted improved sales momentum starting March 2025, which continued into April, and expressed confidence in stronger performance in the second quarter of 2025. An earnings call is scheduled for April 25, 2025, to discuss complete first-quarter results and future outlooks.
