NEW YORK, April 27--Minerals Technologies Inc. (NYSE: MTX) today reported first quarter diluted earnings per common share of $0.64, a 12-percent decrease from the $0.73 reported in the first quarter of 2005. Net income for the quarter was $12.8 million, which was 16 percent lower than the $15.2 million reported in the same period a year ago. Worldwide sales were $266.0 million, a 6-percent increase over the $250.8 million reported in the first quarter of 2005. Foreign exchange had an unfavorable impact of approximately $5.8 million on sales, or 2 percentage points on growth. For the quarter, operating income was $19.0 million, a 21-percent decline from the $24.1 million for the same period last year. The company recorded an insurance settlement gain in non-operating income of $1.8 million, or approximately $0.05 per share, for property damage sustained at the Easton, Pennsylvania, facility in 2004 related to Hurricane Ivan. "The first quarter of 2006 proved to be difficult," said Paul R. Saueracker, chairman, president and chief executive officer. "We continue to face high energy and raw materials costs and the effects of paper machine and paper mill shutdowns. In March, we ceased operation of a satellite PCC facility in Wisconsin after the paper company shut its paper mill, which resulted in higher bad debt expense. We also continue to invest in our market development efforts for SYNSIL® Products. All of these factors had an adverse effect on our operating ratios." Sales in the Specialty Minerals segment, which includes the company's Precipitated Calcium Carbonate (PCC) and Processed Minerals product lines, increased 7 percent in the first quarter 2006 to $182.4 million from $169.8 million in the same period of 2005. Income from operations decreased 25 percent to $12.3 million from $16.4 million in the same period last year. Worldwide sales of PCC grew 7 percent to $143.2 million in the first quarter from $134.0 million in the prior year. Foreign exchange had an unfavorable impact on sales of approximately 2 percentage points of growth. Paper PCC sales increased 7 percent to $128.2 million from $119.7 million in the prior year. "Our Paper PCC volumes showed growth in all regions of the world, with the largest increase coming from our new satellites in China," said Mr. Saueracker. Sales of Specialty PCC grew 5 percent to $15.0 million from $14.3 million in the quarter over the same period in 2005 due to increased sales from the Brookhaven, Mississippi, facility. Worldwide sales of Processed Minerals products increased 9 percent in the first quarter to $39.2 million from $35.8 million in the same period in the prior year. This increase was attributable primarily to the continued strong demand from the residential and commercial construction industries, global demand for plastics and automotive ceramics, and the ramp-up of SYNSIL® Products. Sales of Refractories segment products, which are used primarily in the steel industry, increased 3 percent in the first quarter to $83.6 million from $81.0 million in the same period of 2005. Foreign exchange had an unfavorable impact of approximately 3 percentage points of sales growth. Sales of refractory products and systems to steel and other industrial applications decreased 5 percent in the first quarter to $61.1 from $64.4 million last year. Sales of metallurgical products within the Refractories segment increased 36 percent in the first quarter to $22.5 million as compared with $16.6 million in the same period last year. This increase was primarily attributable to strong volume demand worldwide. Income from operations for the Refractories segment decreased 13 percent to $6.7 million from $7.7 million in the first quarter of 2005, due to a less favorable product mix and additional costs related to new business development activities. "Our 100,000-ton per year refractories manufacturing plant in China, currently under construction, is expected to be operational by mid-year," said Mr. Saueracker. "We expect this facility to service the growing Chinese steel market while being nearer to our raw material supply. "The development program for our SYNSIL® Products family of composite minerals for the glass industry is accelerating," said Mr. Saueracker. "The 200,000-ton manufacturing facility in Chester, South Carolina, became operational in February and we are constructing another 200,000-ton facility in Cleburne, Texas." Mr. Saueracker concluded: "As expected, the first quarter of 2006 was challenging. We are confident, however, that if the economy remains supportive, we will substantially improve our financial performance for the full year." | 