Q2 2024 Minerals Technologies Inc Earnings Call Transcript
Key Points
- Minerals Technologies Inc (MTX) delivered a record quarter with sales of $541 million and operating income of $85 million, up 20% year-over-year.
- The consumer and specialties segment grew 3% over last year, driven by strong growth in consumer specialty and specialty additives businesses.
- Operating margins expanded to 15.7%, ahead of the interim target for the year, driven by a favorable mix of higher-margin products and cost-saving initiatives.
- Earnings per share increased by 26% to $1.65, and operating cash flow grew by 10% year-over-year.
- The company has a strong pipeline of opportunities in the paper and packaging industry, driven by demand for NewYield and other sustainable solutions.
- Sales in the engineered solutions segment were slightly lower than last year due to continued weakness in the commercial construction market.
- The environmental and infrastructure product line experienced lower sales compared to last year, with challenging market conditions expected to persist.
- The company recorded special charges of $34 million, primarily related to a $30 million provision for credit loss associated with the BMI bankruptcy.
- The high-temperature technologies product line faces potential impacts from lower steel prices and a weaker agriculture equipment market in the US.
- The pet litter business experienced temporarily lower sales due to the timing of product changeovers at a few retailers in the US.
Good morning, everyone, and welcome to our second-quarter 2024 earnings conference call. Today's call will be led by Chairman and Chief Executive Officer, Doug Dietrich; and Chief Financial Officer, Erik Aldag. Following Doug and Erikâs prepared remarks, weâll open it up to questions.
As a reminder, some of the statements made during this call may constitute forward-looking statements within the meaning of the federal securities laws. Please note the cautionary language about forward-looking statements contained in our earnings release and on these slides. Our SEC filings disclose certain risks and uncertainties, which may cause our actual results to differ materially from these forward-looking statements. Please also note that some of our comments today refer to non-GAAP financial measures. A reconciliation to GAAP financial measures can be found in our earnings release and in appendix of this presentation, which are posted on our website. Now Iâll turn the call over to Doug. Doug?
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