Minerals Technologies Inc. (NYSE:MTX) Q3 2019 Earnings Conference Call Transcript

Nov 01, 2019 • 11:00 am ET

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Minerals Technologies Inc. (NYSE:MTX) Q3 2019 Earnings Conference Call Transcript

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Operator
Operator

Good day everyone and welcome to the Third Quarter 2019 Minerals Technologies Earnings Call. [Operator Instructions] At this time I would like to turn the call over to Cindi Buckwalter Head of Investor Relations for Minerals Technologies. Please go ahead Ms. Buckwalter.

Executive
Cindi Buckwalter

Thanks Brad. Good morning everyone and welcome to our third quarter 2019 earnings conference call. Today's call will be led by Chief Executive Officer Doug Dietrich; and Chief Financial Officer Matt Garth. Following Doug and Matt's prepared remarks we will open it up for questions. I would like to remind you that beginning on page 14 of our 2018 10-K we list the various risk factors and conditions that may affect our future results and I'll also point out the safe harbor disclaimer on this slide. Statements related to future performance by members of our team are subject to these limitations cautionary remarks and conditions. Now I'll turn the call over to Doug. Doug?

Executive
Douglas T. Dietrich

Thanks Cindy. Good morning everyone and welcome to our third quarter earnings call. I'll begin today by providing high-level commentary on our third quarter results both the positive areas as well as the challenges we faced. I'll then go through the dynamics in our key end markets focusing on some of the areas that have changed since we last spoke. I'd also like to give a brief update on the progress we're making on several strategic growth fronts. And following that Matt will review our financials in more detail and take you through our fourth quarter outlook. Heading into the third quarter we were prepared to navigate through weaker demand conditions in key end markets and geographies. Our results reflect these persistent challenges but they also underscore how we've managed through them by remaining disciplined and focused on strong execution and by taking decisive measures with our restructuring program to adapt to the changing market demand. We've adjusted our operations to align to lower overall volumes by aggressively managing our variable and fixed costs. And driving efficiencies across our processing and mining activities. Our solid execution extended beyond our operational activities as we advanced several strategic initiatives that support our long-term growth. And I'll discuss these highlights in more detail later in my remarks. From a financial perspective total sales in the quarter were $450 million and we generated $59 million of operating income. Margins remained at second quarter levels despite lower sales and a weaker product mix a reflection of our operational adjustments and pricing actions to overcome cost pressures.

Our restructuring activities are progressing well and we're on track to achieve the full run rate savings of $12 million in the first quarter of 2020. Importantly through all of this our employees have remained focused on safety operational excellence and delivering the high level of quality and service that our customers expect. There are weaker conditions in a few markets. Most notably the global foundry market European refractories and North American Paper PCC. The largest decrease came in our Metalcasting business which was