AMCOL Sales Growth Led by Energy Services

AMCOL International Corp of Hoffman Estates, IL has reported a fourth quarter net income of US$12.1 million on net sales of US$239.1 million versus a net income of US$12.6 million on sales of US$233.8 million in the same period of 2011. The higher sales came from the company’’s Energy Services (formerly Oilfield Services) segment. The company’’s Performance Materials (formerly Minerals and Materials) segment and Construction Technologies (formerly Environmental) segment both reported lower net sales. AMCOL’s Energy Services segment made a fourth quarter operating profit of US$8.4 million on net sales of US$71.8 million compared with US$6.0 million on sales of US$53.8 million in the prior year period. The sales increase was primarily driven by increased domestic revenues in both land-based and offshore activities. For the full year, the segment generated an operating profit of US$28.1 million on sales of US$257.3 million up from US$21.2 million on sales of US$194.7 million in 2011. AMCOL’s Performance Materials segment generated a fourth quarter operating profit of US$14.7 million on net sales of US$114.6 million, down from US$18.1 million on sales of US$120.3 million in the same period of 2011. Decreased demand in fabric care and pet products were responsible for much of the decline. For all of 2012, the segment generated an operating profit of US$76.7 million on net sales of US$491.9 million versus US$67.2 million on sales of US$476.7 million in 2011. AMCOL’s Construction Technologies segment recorded a fourth quarter operating profit of US$1.9 million on net sales of US$50.1 million compared with US$0.5 million on sales of US$54.2 million in the 2011 period. The decline in sales reflects lower demand for the segment’s lining technologies products both domestically and in Europe. For the year, the segment made US$16.0 million on net sales of US$222.8 million compared with US$16.9 million on sales of US$251.9 million in 2011. Ryan McKendrick, AMCOL’s CEO, said, “We continue to focus on building the framework necessary to maintain a leadership position in multiple, attractive market sectors. In addition, we will continue to actively manage our business portfolio, which in 2013 is likely to result in consolidation and restructuring of certain operations that do not fit our strategic and financial performance objectives. We anticipate restructuring charges in 2013 associated with these actions to be in the range of US$3 million to US$5 million.”

Volume 27 issue 3

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