TOR Minerals International Reports Unaudited Consolidated Earnings Results for the Third Quarter and Nine Months Ended September 30, 2017; Provides Capital Expenditure Guidance for the Full Year 2017
October 26, 2017 at 04:05 pm EDT
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TOR Minerals International reported unaudited consolidated earnings results for the third quarter and nine months ended September 30, 2017. For the quarter, the company reported net sales of $9,487,000, operating loss of $420,000, loss before income tax of $424,000, net loss of $329,000 or $0.09 per diluted share against net sales of $10,036,000, operating income of $456,000, income before income tax of $433,000, net income of $291,000 or $0.08 per diluted share a year ago. The decrease in revenue was primarily due to a 23% decrease in specialty alumina sales, which was partially offset by a 38% increase in TiO2 pigments and a slight increase in Barium Sulfate and Other Products. The decrease in Specialty Alumina sales was primarily related to a decrease in volume from a significant U.S. customer. The decrease in sales to this customer was partially offset by 37% growth of specialty alumina sales in Europe and growth of OPTILOAD to both existing and new customers. TiO2 pigment sales increased 8% in the Americas, 127% in Asia, and were flat year over year in Europe; resulting in 38% growth in the category overall. Capital expenditures during the third quarter were $657,000 compared to $104,000 last year. The increase in capital spending was primarily related to the increase in production equipment used in manufacturing specialty alumina products. The company generated about $600,000 in cash flow from operations during the third quarter as the net loss was offset by lower inventory levels and depreciation.
For the nine months, the company reported net sales of $30,914,000, operating loss of $110,000, loss before income tax of $180,000, net loss of $109,000 or $0.03 per diluted share against net sales of $29,458,000, operating income of $958,000, income before income tax of $787,000, net income of $622,000 or $0.18 per diluted share a year ago. Net cash provided by operating activities of $1,959,000 compared to $3,063,000 a year ago. Additions to property, plant and equipment of $2,364,000 compared to $894,000 a year ago.
For the full year 2017, the company expects capital spending to be approximately $2.5 million to $3 million, which is slightly higher than normal spending levels.
TOR Minerals International, Inc. is a manufacturer and seller of mineral products for use as pigments and extenders, primarily in the manufacture of paints, industrial coatings plastics, and solid surface applications. The Companyâs products and applications include alumina trihydrate, barium sulfate slurry, boehmite, colored titanium dioxide (TiO2) pigments and white TiO2 synergist. The Company's specialty mineral products, which include flame retardant and smoke suppressant fillers, engineered fillers, and titanium dioxide color hybrid pigments, are designed for use in plastics, coatings, paints and catalysts applications, as well as a range of other industrial applications. The Company and its subsidiaries operate in the business of pigment manufacturing and related products in three geographic segments, namely, United States, European and Asian. Its subsidiaries include TOR Minerals Malaysia, Sdn. Bhd. and TOR Processing and Trade, BV.
TOR Minerals International Reports Unaudited Consolidated Earnings Results for the Third Quarter and Nine Months Ended September 30, 2017; Provides Capital Expenditure Guidance for the Full Year 2017