Minerals Technologies Inc. (MTI) became a publicly traded company on October 23, 1992 through an initial public offering from Pfizer Inc, the pharmaceutical company. In 1992, MTI had sales of $394 million and income of $25 million. At year’s end 2003, these figures had more than doubled—sales of $813.7 million and income of $63.2 million.
The Company has two reportable segments: Specialty Minerals and Refractories. The Specialty Minerals segment produces and sells the synthetic mineral product PCC and the processed mineral product quicklime ("lime"), and mines, processes and sells other natural mineral products, primarily limestone and talc. This segment's products are used principally in the paper, building materials, paint and coatings, glass, ceramic, polymer, food and pharmaceutical industries. The Refractories segment produces and markets monolithic and shaped refractory materials and specialty products, services and application equipment used primarily by the steel, non-ferrous metal, minerals processing and glass industries.
Much of MTI’s success is attributable to the development of the “satellite” plant concept for PCC. In the mid-1980s, MTI established a new business model when it began to construct PCC manufacturing plants on site at paper mills. This innovation, over time, helped revolutionize the way printing and writing paper was made in North America--from acid-based to alkaline-based paper. In 1992, MTI owned and operated 29 commercial PCC plants in North America. At the end of 2005, the Company had 55 satellite plants operating or under construction in 17 countries. MTI has two ground calcium carbonate production (GCC) facilities and one talc production facility in the United States.
The Refractories segment of MTI’s business, which is managed by Minteq International Inc., has operations in about 40 countries. The Company’s monolithics refractory materials are applied to the interiors of steel-making vessels to protect the operating vessel. When MTI went public, the Refractories segment was primarily a commodities business with relatively low profitability. Over the years, MTI focused on transforming the business by offering specialty refractory products and application systems. Minteq also produces metallurgical wire that is used to improve the quality of steel.
By 1999, MTI had worldwide sales of $637.5 million, and earnings per share had grown at an annual rate of about 15 percent since 1992. The Company also was the first to build and operate a PCC plant in China—one of the largest satellite PCC plants ever built.
In mid-2000, the worldwide economy took a drastic downturn that affected all manufacturing businesses worldwide. The manufacturing sector of the United States underwent a structural change. During this time, Minerals Technologies continued to grow, although the growth rate was below the Company’s stated objectives.
Minerals Technologies’ business fundamentals are strong. We believe we have the right strategies in place to sustain future growth, which includes maintaining our commitment to research and development—-the bedrock to our growth.
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