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Jun 30, 2024
Minerals Technologies Q2 2024 Earnings Report
Minerals Technologies reported record operating income, EBITDA, and EPS, driven by strong performance across its segments and effective cost management.
Key Takeaways
Minerals Technologies delivered a record quarter with strong sales and operating income growth. The company's focus on higher growth markets and operational excellence drove margin expansion and earnings per share growth, despite some market challenges.
Sales reached $541 million, with Consumer & Specialties segment growing 3% on an underlying basis.
Operating Income was a record $85 million, up 20% year-over-year, with margins expanding to 15.7%.
Earnings per share increased 26% year-over-year to $1.65.
The company agreed to establish a $30 million credit facility for BMI to support bankruptcy and mediation process.
Forward Guidance
Minerals Technologies expects a similar level of sales and a solid operating performance in the third quarter. MTI expects sales between $535 million and $545 million, operating income between $77 million and $80 million, and EPS between $1.50 to $1.55.
Positive Outlook
- Underlying sales growth in the low-to-mid-single digit range versus last year in Consumer & Specialties, driven by higher sales of cat litter and other consumer-oriented products.
- Sales for Engineered Solutions are expected to be slightly lower than last year, similar to what was seen in the second quarter.
- Operating margin is expected to remain strong at close to 15%.
- Delivering this guidance would represent a record profit level for a third quarter.
- Strong cash flow performance.
Challenges Ahead
- Some seasonally higher energy costs.
- Demand in a few industrial markets is showing some softness.
- Market conditions in Environmental & Infrastructure remain weak.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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