On October 26, 2023, Minerals Technologies Inc (MTX, Financial) reported its third-quarter earnings for the period ending October 1, 2023. The company reported a loss per share of $0.59, or earnings per share of $1.49 excluding $85 million of special items associated with Barretts Minerals Inc's bankruptcy. Despite these charges, the company delivered record sales and operating income in the third quarter.
Financial Performance
The company's worldwide net sales were $548 million, marking a 1 percent increase from the prior year. However, the company reported an operating loss of $8 million due to a $72 million non-cash impairment of BMI’s fixed assets and $13 million of litigation costs associated with BMI’s Chapter 11 filing. Excluding these special items, operating income was $77 million, up 9 percent sequentially and 15 percent above the prior year.
Segment Performance
The Consumer & Specialties segment reported sales of $291 million in the third quarter, up 2 percent over the prior year. The Engineered Solutions segment reported sales of $257 million, down 2 percent sequentially and flat to the prior year.
Dividend Increase and Share Repurchase Program
As part of its commitment to returning cash to shareholders, the company increased its regular quarterly dividend to $0.10 per share, up from $0.05 per share. In addition, the Board of Directors for MTI has authorized a new, one-year $75 million share repurchase program.
Looking Ahead
Despite the challenges faced due to BMI's bankruptcy, the company remains optimistic about its future performance. The company's new segments and organizational structure are aligned and delivering towards its long-term targets. The company will continue to focus on driving higher levels of profitability and cash flow generation.
Conference Call
Minerals Technologies will host a conference call on October 27, 2023, at 11 a.m. Eastern Time to discuss these results. The live earnings webcast can be accessed at https://investors.mineralstech.com/quarterly-results-conference-calls.
Explore the complete 8-K earnings release (here) from Minerals Technologies Inc for further details.
