MTX - Earnings call transcript Q2 2019 | Minerals Technologies Inc.

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Operator

Good day, everyone, and welcome to the Second Quarter 2019 Minerals Technologies Earnings Call. Today's call is being recorded. 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.

Cindi Buckwalter

Anna. you, Thank and conference everyone, our quarter second Good welcome earnings call. XXXX morning, to will Chief Today's Dietrich; led be call by Financial Matt and Executive Officer, Garth. Chief Doug Officer,

it Matt's we prepared Following questions. Doug will and open up remarks, for

to Safe beginning slide. results. I of performance page are point And future various factors I'll our you may Statements that the listed XX and we also conditions. on conditions limitations, of would Harbor XX-K, affect members remind the our like to risk subject to related cautionary disclaimer that on XXXX and our remarks by out future team these

Now the turn Doug. Doug? I'll over call to

Doug Dietrich

markets. I second end morning, seeing earnings our and today range the walk begin our continued quarter Cindi. have to some you our making discuss time strategies our covering for the take everyone, of and what to we're to and call. across Good in traction a I'll broad we're currently we I'll growth second then quarter through want by Thanks, opportunities And from investments. welcome highlights

financials review I'll remarks Matt session. wrap the our with some will detail concluding more it before Q&A in up and

measures one lines, faced generated given was strong cash our product for adjust a changing margins. and conditions quarter the the to where decisive we to and a also improve was quarter markets and Second growth robust in several in challenging of few market It a MTI, end geographies. we environment took delivered flow

through $XX all was of earnings productivity past operating adjusted faced with range pass and Throughout gave we improvements, which a share inflationary at our months. top $XXX implemented We a drove expenses, the quarter currency million, pressures quarter, of XX were end perspective, continue $X.XX, the over up June. income, for pricing generated on to appropriate the we the sales as we across tightly constant per segments the margins From X% basis. double-digit and managed actions financial total million of in the we

free half flow been and respectively. year, operations first have from up for the strong the Cash cash XX% and XX% of

with and repayments the also share We repurchases quarter. debt continued in our

In Let the pet sales strong robust Materials me care growth. delivered care Products private healthy our the by Environmental care in product North quarter. touch by some In Building Materials, Sivomatic's particular, and pet lines, highlights driven Performance and America Europe. of were of all on label demand in sales up performance pet

Resistex Materials by sales quarter that projects a our picked international in Environmental innovative of from Gulf recovered growth and system and larger rose segment products Sales well latest a deepwater XX%, had bolstered from Building slow after large quarter. into this strong testing the up lining using Mexico. Services first shifted filtration projects our project Energy we as

signing include highlights an Additional PCC, satellite XXXXX-ton ENVIROFIL of of first contract the quarter innovative technology. in in deployment India the commercial recycling

several satellite our addition, In Indonesia faced the new throughout fully quarter. ramped and We market operating up. is challenges in

due Bentonite the by business. to in business weaker Specifically softer demand was our volumes And into also the in sold our and our refractories sharply U.S. Europe. environment China, was fluid Metalcasting onshore from in to drilling led demand customers impacted drilling foundry weaker lower activity. lower products

which our was costs of volume bentonite majority railroad rail at flooding-related increased We also bentonite in and the supply volume major contended down we for to customers. with infrastructure XX the A shipped in United to States limited days. issues shut products our

contingency alternative plans by our transportation acted leveraging strategic team activating quickly modes to our and of distribution locations. Our implement

we in of expense to our some as as cost we adjust our recent markets given controls management these restructuring dynamics. the faced part and implemented Throughout and program well the margins supplied rail without outage, are to pressures end improve the Prudent our a we ensured were and changes customers DNA tight cost of that our interruption.

our forward. changed and to seeing U.S. traction positive take a the Materials, for a what strategy currently year. pipeline the we're with markets, strong And end in we products we through our what through remainder going Products care Starting of expect trends Pet let during strong to see transition is opportunities. the of you private label Performance products and demand Europe our market the Now higher-value robust of demand both pet technologies should to supported care packaged continue and our me in by for the Environmental remain second gaining dynamics Europe. environmental -- portfolio and quarter

volumes volumes were we of grew. weaken declined the sales with the seen weak orders whom from continued largest product our and likely drilling year. product stable sand quarter down started and China products lower further market Minerals XX% The in in will demand our current is our China. noting the lower in the levels during June, Worth our customers In China while industry pre-blended also profits the that and outlook May many foundry Metalcasting foundry our U.S. anticipate automotive We've overall of year continue so green bond serve line down rapidly volume. our of but remainder which this far indicates relatively customers that in which quarter. higher-value the impact for the on and demand customers U.S. Basic for the quarter, in both the from third foundry year had from

relatively and paper remain Turning North to business, rates Minerals Specialty European operating America market stable. our

low the However, demand we're in from quarter. in production where paper seeing volumes picked not China slower first have the significantly mill up levels

for India capacity high-performance business supporting with growth on capitalized stable. Asia, this demand has PCC our expansions and two products customer strong newest Southeast progressing are facility we're Specialty well. and America that remain Latin

business the the in remain rates largest for refractories sales around Operating U.S. XX%. our steel market, region

for recent we testing maintain increased offshore strong filtration steel conditions softer likely business, well capitalized markets our additional demand projects. several European large services we've In continue. pipeline Energy And global Services on including a However, we to are and -- our the of in deepwater projects. capitalized increased on large

for few also markets. we quarter will focused outline to of some we that emphasize a in details challenging period, to our on on minutes, our I strategy want remain going quarter which of continue to that conditions see another second our multiple executing and opportunities provide going our support guidance initiatives which this in to we the reflect In through is while Matt, manage invest. growth third, to and is more long-term on high-return

these starting with businesses. of take detail, Let some through the our long-term me profitable existing in you growth areas of in we're investing more how

attractive growth potential and stable consumer-oriented resources and unique Personal long-term are we markets with markets. and have to Household serve Our Care serves business several These capability them.

as in We've fabric been product well also pet business, has and private our invested as edible oil in investing our through in care. formulations. which through purification, new health our care We've label growth animal offering driven

up reserve has example, built and started and Turkey see our new That edible and new manufacturing this in year, consumer-oriented last process. that presence as in And ramped expand opportunities we up for production market. facility an purification we a oil a plant mineral utilizes to

ore to that shift been has Products geosynthetic the to complex and Environmental support from landfill liners issues. clay has base in treatment higher-value portfolio remediation water a our to technology strategy capabilities Our

to of and invested market in are new years, RESISTEX uniquely the FLUORO-SORB, tailored these several past opportunities. of address which manufacturing the including few and specialized development, Over large we've variations marketing products,

hold, this strategy in which the Starting of this half to year. been the XX% see product our in has of sales driver the take main line growth first

opportunities Metalcasting attractive because generate to We PCC flow Paper they cash both continue have and to invest businesses, in returns. our global healthy

fundamentals, large Our of our a attractive China significant Metalcasting investment and markets continued for in formulations. opportunity. bond such blended sand the as market business represents growth India, Foundry green remain and penetration

to customers costs strategic through improve casting expertise mineral solutions. resource technical our quality tailored reduce help leverage positions We and and

support For in the we've past manufacturing growth. to assets years, been and several this mining investing

attractive invest to in see also We returns. at compelling Paper business PCC our opportunities

last we've three expansions five of capacity. signed over new XXX,XXX years, satellite completed of the tons around world, PCC three contracts satellites and totaling the existing Over

of nature technologies. flow PCC company. for pipeline an long-term a solid than with associated maintain the new supply high-performing consistent of and We of cash of the investments, new for they opportunities Given contracts our source provide XX each satellites more these active

we our of this Furthermore, and customer market a needs. as we as into growing support well applications are packaging unique have for environmental proposition PCC value where the in evolving recycling expanding solutions to

another last and products revenue years. pipeline the derived is over speed commercialization We growth. investing new Our where five years, the we over the area around two to by organic from innovation the each XX% drive past increased XXX year XX% by products are of improved commercialized

products as more proposition, We've integrating customers to tailored also value to our our are product instilled to voice alignment ensure and what our track need. such of customer uniquely tools metrics that

address of low Additrol and in RESISTEX NewYield, recycling our environmental broader FLURO-SORB, toward issues. and development all ENVIROFIL, as that investing the focus such Technologies emission reflect products

is where acquisitions We healthy amount strategic significant acquisitions. last maintain Sivomatic, We quickly pillar our time expectations. and we dedicated integrated in third into performing opportunities. model The of and was feel this driving year analyzing which mine-to-market company through the portfolio acquisition with of is our returns above confident to potential demonstrated of a mineral-based

growth feel opportunities a of breadth hope at In attractive gives sum, this we the for have I you MTI.

and for and the initiatives to support our attractive returns flexibility have strength sustainable shareholders. all balance these long-term We sheet drive of

report, corporate with published to point important an marks goals Matt, and it XXth new we've in I'd sustainability last in areas. reductions before year's like turning -- responsibility six sustainability our One we over journey targets environmental This and XXXX to established highlight as target report. that chapter our

and strategy goals. These financial corporate our new are our and commitments with sustainability elevate performance fully will overall aligned

on report encourage now stakeholders continued read this understand And addition, will help better website. transparency available and report I to is this our which our progress. In provide more you our

Matt financials. to over review our it hand now I'll to Matt?

Matt Garth

for -- our quarter, Doug, I'll the and with you me. fourth review second results, pardon of performance quarter Thanks, also our segments four the our outlook everyone. hello, provide and third

a for entered mentioned, across strength volatile Doug We MTI. markets. the relative the was with most second one quarter As quarter

However, States. conditions outside we largest June, quickly. in of May and overall United markets in the several our had Metalcasting weakness deteriorated saw impact, and the

outlook the our the quarter second largest managed rail States Western flooding-related market These mitigated conditions and financial United issues to $X had We infrastructure on through approximately the results. million. impact and in the impact

reported second the the our flat $XXX.X prior were results, million sales in to turning quarter Now year. versus

exchange foreign million unfavorable sales bridge, volumes Sivomatic were additional and of As you and These weaker can $X.X in of month pricing see mix. and $XX.X higher offset million by had sales. we an of impacts the

impact income the volumes the was income operating largest The shows quarter $XX.X lower the Operating unfavorable the product that prior versus for an million. had mix bridge year. and

materials raw in we XXXX, oxide have Our in logistics offset materials, seen continue energy than pricing while and increases in ore mining, ore slow the so other and and quarter. actions freight far inflation that and magnesium raw the costs more energy costs rise. to Note

some with continued the of increased tightly over sales last we perspective, million. year. incurred months, the from $XX quarter, roughly have pricing to SG&A and slightly manage by we expenses XX have For prior increases In million a down the as percent of cost $XX

primarily which year, to the last exchange impact foreign Earnings gains income; factors: volume prior of lower per year. lower operating due second the share $X.XX, to on two compared below-the-line was mix were than and first, and unfavorable $X.XX

effective Our favorable as rate of quarter. items XX.X% was in a tax discrete the tax result

for the our expecting be we full are around that ETR Note year to XX%.

as through continued further pricing to customers our chain mitigate actions as working activity are to well improve increases. margins with cost We supply

organizational better align cost and announced program environment. our in our restructuring the structure In savings changing and a we to addition, and market margins cost improve

EPS the million. Let's pretax $X.XX quarter specials special the which items take a Reported the was in $XX.X included quarter. look of at in

of align As better million asset program $X.X recognized the costs for part noncash charge impairments our severance-related restructuring $X.X a $XX.X of million. of total to million manufacturing and of footprint we

In realize to half this run achieving to $X.X bankruptcy first million $XX wrote of quarter the rate full annualized United off of Kingdom. expect savings XXXX. we in of also the in related the program We a the refractories receivables the from million of customer

items EPS was Excluding $X.XX. these special

growth a year Personal and increased in Performance American and sales segments well. which Care flat with starting X% European continues with Performance on Sivomatic currency to the perform care including I sales want XX% organic basis. Household pet and constant increased driven more the prior were Materials. review to to X% by from detail North Materials

first increased Environmental in quarter. sales we remediation driven that shifted large by Arabia the red Building product projects Saudi a mud Materials and picked sales grew bauxite and as up project X% XX% from

Growth agricultural and China in Basic markets and and equipment customers automotive, customer by heavy most to June offset stronger volumes these from Metalcasting product in levels foundry experienced the Metalcasting the lower April. Demand sales. lines we lower U.S. serving impact from The significant in sand declined truck in and was demand Minerals. and May sales was weaker specialty in due foundry relatively

outlook continues is Permian gas foundry customer demand by for weaker our these on was oil driven Basin Minerals customer Foundry in levels products and demand there and the United demand at uncertainty States. Basic for the of lower the in activity lower volumes volumes. in the reduction drilling

down prior and driven and volumes mix. energy. of operating income materials year million raw Metalcasting primarily million costs Segment actions of in was from $XX.X unfavorable $X.X million offset higher freight ore by mostly lower Pricing million $X.X the $X.X product from

Now the quarter. looking third to

and see to Care Personal continue our strength in lower lines. in and Minerals as We as volumes Metalcasting Household well Basic product

may these timing several a see third quarter. be segment, we lower is large -- operating $X to million by In Environmental project in Overall income the and shift products for we expect from sales of though the and addition opportunities $X see uncertain in Products to million Materials, Building projects sequentially. the we

previously on paper this segment North X% were to Sales primarily Specialty a constant Sales Minerals. Moving the machine due announced lower to were Paper in lower shutdowns X% PCC for of currency America. basis. or on

to absorbed volumes the in Port other States. by mills paper paper see Hudson expected We United the

Sales the the seen are customers Asia not have been quarter from met existing with we satellites and new China. and slower other However as of as mills, has grew into our expansions inventory. offsetting volume de-placed in imports in X% in PCC pull our Paper shifts demand

up. impact to versus prior rates the higher X% higher grew by the foreign up sales PCC volumes U.K. the expansion production due as facility in were year. ramps excluding Specialty Latin exchange America our of also at led X% Sales that

of lower lower decreased automotive Processed lower to States. by shutdowns to and million X% volumes due year Operating America, the than million, in volumes. customers our Processed $X.X $XX.X United machine last Minerals foreign Minerals paper was impacts sales income in construction and North driven exchange the

Paper looking outages. take And will to quarter, maintenance annual their Europe the our customers in normally scheduled PCC third

we We segment Overall cautious but to by that are and be outlook markets on expect construction continued sequentially. we $X growth serve. from the expect expansions, operating million lower the automotive our income we for

segment however conditions market And versus strong softer constant sales let's lower on now to the are go flat basis. rates seeing the remain Refractories year. in X% Refractories the a utilization were and year currency segment. last U.S., we prior Europe than steel Steel in

from income year last this deliver $XX.X and was continues Operating up to slightly margins. business million strong

with quarter, performance to Looking the stable continued third in softness we by U.S. expect similar market offset conditions the Europe. in

strong We expect laser of equipment sales. another year

second will However be segment for the sales to expect we the the be quarter. income the And to overall fourth weighted quarter. similar operating to

these projects by demand for the income a to Sales filtration as had as XX% turn let's Energy improved services and double sales Gulf was in the Now strong quarter Services well operating and Energy with Mexico internationally. up more than prior Services. year. of well driven testing growth large

we to sequentially, sequentially completion quarter. Looking to large lower pipeline projects end the income due be of begin third see the million of operating quarter. to we at income mostly fourth operating second have the that the strong expect by third Though, in the to projects will up we ramp $X of a quarter down quarter,

from million. $XX the $XX quarter Now strong last XX% flow year. moving operations, was of and Cash from million quarter. liquidity than Year-to-date at operations our in generated have in the cash to higher we cash

We we remainder efficiencies. cash to XXXX working continue flow generation expect strong the of drive for capital as

million. EBITDA. total we of more ratio and leverage reduced have in at quarter repaid debt Sivomatic, debt of by We stands million than the following times Our $XX net $XXX acquisition the X.X

million $XX since during $XX We repurchases shares million XXXX. to beginning the bringing repurchased total quarter, the also of of

$XXX total cash is our Our of of the and the million second with liquidity strong equivalents available end million at on revolver. and $XXX quarter

EBITDA. We of two will move to debt toward ratio deployment capital and continue balanced leverage repaying our net times approach continue target our to

Now for quarter. let me the summarize are what seeing third we

currently where X% and From continued conditions today, lower $X. be and Europe. Given expect to in earnings foundry are we demand China quarter are share the project around we through environment per sales to seeing weaker third third the experiencing, we're we approximately market be and market quarter sequentially lower

forecasting Energy Environmental quarter Building and projects third the are in from Products, We several Services. commence Materials to

uncertainty However, strong PCC. our of cash these The at whether late this will expect we the point begin projects also in Household there flow. is continued for to Care quarter will program as restructuring see and some continued conditions Personal fully and be completed stable strength quarter. We the third in in benefits third and

for to turn Doug remarks. Now I'll back some closing over it

Doug Dietrich

a take to conditions to these the you quarter our like just we're for the to the correct weakening end And Matt today. actions reflects call markets. I'd taken necessary of we've to gave guidance moment some seeing in Matt. Thanks our The summarize third market conditions.

we do fourth the intact. point of and are if this do At and market weakening underlying model fundamentals propositions strong our into we'll business our additional remain adjustments. not see The make positions quarter further but value we

While we I that remain long-term focused our on executing period, out opportunities manage for on you through this laid support growth we strategies. our

open that, questions. With up let's to it

Operator

with And take Instructions] we'll Securities. from question Daniel first Moore [Operator our CJS

Daniel Moore

QX That’s for I Metalcasting. morning, about talk wanted guess start Good down. maybe the a Matt. I to just and the obviously cadence the with things questions. little color bit. slow taking Doug,

markets. between amount your seeing first heavy down of ag or Specifically, it the a -- where derivative momentum difference at second greatest still remarks U.S., any And margin those seeing softness? in QX prepared auto wondering truck obviously the you're break out in but just little in in can further the of you it in

Doug Dietrich

Yes.

kind And to you obviously over having second been - things That to customers continue world. business little strong the quarter. March full me in the to Hastings give a these sit quarter what on we've I you think States now June we're And May kind how around it we way have foundry we for reflecting we And to had June. of right rates. our going conversations with our April to changed I'm pass strong Dan. in through it try is more customer of United with frame that demand. the color United where Jon States our In the of in relatively changed Metalcasting let here So show and April a this now in right quickly relatively and you a

in little second quarters of that the same now the fourth. the we're lower third to we we're this to think We And quarter -- up we down similar this first think half a going the but we started of thing April of and so accelerate through we south losing your kind you're China weak kind then picked point. fourth rate. comment in at second remained that weak. the the see that Right bit year derivative continuing don't the are see three don't it's and at see X% and in off

in production the thought first in start that et rates to China. happen. It we'd auto see did would stimulus help quarter We some not call cetera. That

current is to year. see rate throughout so current that in conversations customers going China And to continue our our they extend with -- that are this the

always I weaker right quarter. you to our have think you than you a bit quarter don't I conversations how that with it far fill worsening think I guidance Jon, Matt So and that gave second customers see you now. reflection kind we do of third of want a can out is see our but

Jon Hastings

comment. couple Good things Sure. I the morning. question, Dan. to A appreciate of

on ag some And with did did we having for saw in very was robust said Heavy fairly Doug and QX. fairly were truck First strong we has decent North span fairly our America. And have automotive Like the conversations It across municipal. quickly industrial changes. that actually customers. us that stayed predicated then we QX steady. a

it Originally growth for quickly in differentiation So were ramped QX cetera I telling in quickly. said et pretty like QX all down foundries a there. cetera. it the changed And of a like outlook, in et QX. little bit But then the here us looking favorable year pretty

the over customers. course put We for needs truck. almost Of in customers a on just send it it much pretty basis. We real-time model to our supplying those business is We in It's blend. time. a

at And so fluctuations demand us quickly. pretty will the any foundries impact

is things do is be right so customers out. usually customers, months. Like as the Conversations a try in others visibility continued are And now for book couple America predict weeks continue North say of it sluggishness are and in are to a in with said, some that our did some QX. demand that Doug and trends week there two our order going to have we've they our through got saying uncertainty to some pretty There might QX. stable we

the where that ended if want steady early were China all sluggish you in fairly is we're weak the we we comment we well, different by QX so bit you America quarter. to -- China if a Chinese If together North as compared pretty had in me So a little look I story regarding because at Year the quarter. New predicting But of then rates to end mainly America coming little was saw started seeing QX. longer-term expect talking we view and of early than they've demand. that we and some were demand QX, and continue probably we fairly quarter some early pent-up bit the our to And the we sluggishness North to trends see got customers, rebound change. as in and into Again we did some with a into QX QX

with in Demand We've is our proposition products to got It has blended strong. high-value noting though worth very those our be value continued for China. products.

least So, those with we're at strategy our blended towards favorably products. inclined

driving continuous made continuing products do. this all quickly. But what adjustments we're of throughout response. We've our Now, improvement all to pretty our retail We're we in that see into drive our we with market We're blending costs, costs, those Does innovation the customers. we to also and line and our in where our are sure demands that our mining costs, processing go. on you? focused help making the precipitated

Daniel Moore

you penetration slowdown at bad which Yes, are good -- neutral? -- increase would it to I the flat the does. with able the or China, mean rate impact In

Doug Dietrich

No.

mentioned I proposition. kind I to the and testament and as just I -- in quarter. we Even in it's I Jon in think even down market, we The castings China and And is that's we drive products is of the changing. our customers in of still the can cost. quality a think think mentioned they improving mentioned as says terms because in the blended the this save penetration. it's project my think think It also this products of demand cost -- to end I comments that serve higher-value foundry first value of

And value so challenging market those of can I out of still they're and through think both out elements that our see for now. you proposition Chinese right play playing rather metal-casting

I So, I that. not Those fundamentals in but India also these that attractive can are growth yes, many continue investment and to for years. think just in the in said for penetration we drive China, continued in fundamentals

Jon Hastings

new just me casting has to more of in that lines. modern of Keep some let the China investment in add that. India and Also there mind been lot in a

they serve. in are you that in produce that on technology finishes capacity as requires America industries equivalent That high-end actually and technology what are they that products new North demand the blended all across the different came very that order installing to in see to So, is the Europe.

foundries. mentioned that foundries is I the efficient are reason The more also those

foundries lot the the our And use which a demand transition in so more to will which new happen of foundries be efficient downturn blended to products. a the

Daniel Moore

Very good. one more. I And if sneak can

the break declines North ramping given the still in of declines year up, to satellites declines And America timing or Can for is I modest likely. you prior America capacity out volume the -- closures PCC. Europe to rather? half revenue Just here versus the back of assume maybe in switching over North

and your said I apologize. in missed prepared remarks you that I If that

Jon Hastings

it address me let Dan. volume perspective No, a from

a take you from as Hudson XX%-plus, the we Port America regions when look at the we're about largely driven North saw volumes what in takeout. by we were serving think I that down talked

But relatively make up XX% we've X% ex-China from there. in year. the and continuing progress to and we volumes converse to China up was start did about first we're Indonesian to facilities had our our to quarter were Asia coming that as the a as online talked see slow Asia

general they about I is customers a from a our through X% pull from year-to-year marketplace on mentioned basis volume that down that as there managing slow are perspective. a

But with up. another Latin volumes region sales and America of X%. good were up performance Volumes up again about

seeing if a add overall, we more where color we're know and seeing the little perspective. what sales. you where overall D.J. as there fairly good I from picture So, maybe want don't to located a from an growing are geographically where we're we're

D.J. Monagle

yes, regarding Well, comment to quite will we've coming that be just Dan online. coming a online new tons got bit the

half of of in But next good is most it some in expansions Matt we've early the online Some that in second quarter. India the year. it in got the that growth mentioned coming third will late

Indonesia ramp-up very we end new -- half announced XXXX. We've got went the that towards half of the well. in first on satellite the India in will be coming towards the second

extended tons now. And on that healthy. with then That half originally dealing second in looks is we've based had permitting So, we've well. that major thought slower China coming been the contributing than but what that's in we that got some issues XXX,XXX on as just

anticipation if in know seeing interest conversion we're time competing of other papermakers and going from they're pigments. have also they PCC. a They on tough increased their a And don't that quality to convert basis

So, a than little had coming what projected. volumes are slower on normally we these albeit

Daniel Moore

total post this percentage now the America of volume kind roughly down? leg is lastly And North North latest of what PCC Great. America

Doug Dietrich

D.J. And Latin together largest you in the is about that about Asia total then be just region. America, after expansion PCC it's -- expansion and took and It's is if a this satellite America our now -- of largest Europe, growing. America North our North a new We're third. and you pretty second the third region. mentioned Right will Asia actually become

Daniel Moore

Perfect. Thank you.

Operator

Kueck now JPMorgan. a from with question We'll take Silke

Silke Kueck

Good you? are morning. How

Doug Dietrich

Silke. Hi

Silke Kueck

is do Or to that expect you restructuring relates that throughout $X.X out the pay to out year? already? severance million -- was that Of of that paid charges the

Matt Garth

will Silke commensurate quarters. of Yes. severance the couple as we be over paid those benefits to the are restructuring that the who we out company. get and going individuals program with the leaving That's next spread of are among out talked about most the

seeing that quarter. piece and actions and third our you're actual here of in into a out the terms fourth way make QX, take rest of So, program. place cash the as QX will taken in That the of good in we

Silke Kueck

million the Okay. Materials like that it like there's million And to And expect impairment it can forward discuss your relate relates But Performance D&A of Performance Products specifically? charge? businesses go $X -- And do to you does down? you which business. going $X.X

Matt Garth

Yes.

on was the in qualify about also me individuals are I talking the exiting. terms Let who what of piece severance cash-out is payments there. The for

However, the to pick prepared we're see talked here of quarter. start as my I notes the at in savings about up third to the end going

asset over the impairment Materials are footprint. you Materials past of taking manufacturing we've within Performance largely the the side been some to think Environmental to facilities Building Performance we couple two in actions and those we've Products related of I strengthen to the quarters From consolidation the businesses. of the that The mentioned in made Materials, impairments

that quarter we've second growth D.J. getting the projects as that and the the the think, you're Doug about some where here $XX taken been running, us up. million $XX as last in from and that as reflects in But of couple million. of impairment range D&A I Now this and highlighted from forward, $XX at quarter ramping perspective years the charge. was going a far just seen that asset we've look That you've to in you push-pull million projects

us pretty it that So comes should the should asset us forward. million DNA keep $XX range down good I as is in impairment think to going use -- keep

Silke Kueck

helpful. Okay. That's

might in into fourth move sales similarly amount from how much the be fourth -- quarter from moving the And to environmental do you to quarter of third equipment quarter? third quarter? Secondly, the Refractories expect what the

Doug Dietrich

just me sure we we're have clear Environmental the -- on first. let Products So piece make in

are As most you these know of projects rather sizable.

Some and them of some be multimillion-dollar $X.X can of them projects. million are

We of the seeing we're nice range. those pipeline will that a third quarter. What have in commence that is

whether exactly the weeks But we so a they move saying. quarter and were fully in week they guess which what few third completed I could get

will these of be in the projects. uncertainty in that's that we're whether part what to sizable or kind the a really and is of And it be and fourth. it in third And very bit there part profit as third revenue doing. will are the of of So all

site remediation And environmental prepared some it that is on in depends when for of it. really them

healthy that's a So but a in the pipeline of Environmental. still bit very movement

that we're profile a have just year business It of sales. business. in this let Brett kind equipment of generally to looks through Right third of we were the kind where our equipment of in more us and Matt's going not take comments Refractories don't healthy where we it's now, the year another Why to Brett mentioned slip. The moves. that of are Argirakis I be

Brett Argirakis

depends on demand Hi, The customer the availability. Silke. Sure. really timing and capital

measurement weighted sales. it As of is Doug said laser last our performance year as really last But the we good due line we've largely strong equipment again the to with strong sales recorded and as two anticipate year. historical more Minteq really systems. another year value for This at for back-end years the and least in do

second third half but fourth heavily strong even a the So the also we and in quarter. have in anticipate more that will happening

Doug Dietrich

I Silke, quarter-type quarter of it's weak through think quarter traditional sales ago remember had last a and profile. in this fourth come years year like the of if two more second a kind saw back in then And really to then equipment the we year bunch of a you pent-up. you them fourth

Silke Kueck

it sort business? of to million been $X than is smaller like million of, something that's $X Or that's that? And

Doug Dietrich

it's usually, I break more up Well No. don't that. that but

Silke Kueck

it But shift? can you call a

Doug Dietrich

Yes.

Silke Kueck-Valdes

Yes.

okay. Okay

Doug Dietrich

projects be of XX% -- the say should These quarter. year. are quarter -- of than I'd in than our about of XX% projects our more some can land land again the fourth the this in majority fourth to but projects I'm sorry, More sizable probably Yes. are of going XX% maybe these

Silke Kueck

Okay. you in you. Thank the lastly And I And whether was remind is greensand's U.S. the of size? how in large sales China? large how are terms wondering metalcasting can Thank me product versus like business you. now the

Doug Dietrich

take John, that you want one?

Jon Hastings

Sure.

in metalcasting So Asia. North America versus

actually is between fairly I China. and You'll North America the be similar one this of in mentioned volume calls -- our

However, what you prices being higher in paid North is see America.

is in our see North XX% of you'll So about business America.

the the Asia and rest China in countries rest -- distributed being got You've and worldwide. the of

Doug Dietrich

of years China North years four in has that a And past under metalcasting $XX XX% that we've four bit that from business The Silke seen ago America the alone couple would And has our I quite say Yes. based. was that are growing well over of XX%. business growth over a where past years to annual rate the today million, been we $XX from compound million almost grown about over $XX at million of period.

kind a price from kind America we're standpoint U.S. per higher and Asia blended like total got but that we've given bonds volume balance North that of from much standpoint selling the greensand of what from in a sales XX%, average XXX% here So ton. is said a between Jon nice

us our two more and a quality selling for the for said margin that price sophisticated product clay in money margins base in still regions. a penetrating much heavy in for higher base industry It higher that those higher them higher saves casting it automotive is those also enables India point customers. that regions. That margin We're higher customers product foundry for growing our and and we're blended China

Silke Kueck

get I’ll queue. much. in very Thanks the back

Operator

We'll now G. next Morbelli take our with Rosemarie Research. from question

Rosemarie Morbelli

Good morning, everyone.

Doug Dietrich

Hi, Rosemarie.

Rosemarie Morbelli

if was the customers both to your different wondering the about and different Minerals just I in at Technologies? talk at the of level could category locations inventories you businesses

Doug Dietrich

very that different guess start by each I one. me it's Let business.

on-site. business few say -- because week a we our Our inventory days We that a constantly -- the inventory inventory that D.J. replenishing those are of tanks have on-site. PCC to probably levels that's in operate we're days two the probably in of average I'd because lowest an Paper

and some sometimes clay spectrum we to have the The North it of to put drying move the and Performance it world of throughout than activity effective to stir because we volumes dryers. the opposite to will is in to air gas-fed move and the dry America mining we cheaper Materials have the of through due most end around that open way in our it's do our those that activity, sizable piles do mining amounts we and business

bit quite case move inventory we we hold more So a as that in it centers. through processing our

earlier, mentioned Materials for equation it's of other that blending metalcasting customers. like kind more in of Jon real-time the PCC. As our Performance Paper We're value side like

but inventory basis of inventory at of more few real-time real days site a and we're actually And a site, weeks inventory value in so hold hold the a than the blending that that lot a adding on on transit of at a we we'll few we'll hold time.

Recently, we've to been saw that's increasing We've that We've adding a stocks that can locations. inventory we this adding make and with business. reflection. issues in sure strategic like been past been deal month we safety that

supplied given investment Our main that three-day of ability outage reflection arteries is a frankly. inventory to the customers a keep in more of

So it really varies by business.

and other I of Performance in the terms of Does business Minerals help? sales. that on our Mintech raw think the stock average and for materials business are

Rosemarie Morbelli

I is is it in you was I there of it there I to to guess, really opposed which quarter It slowdown, -- not be heard drop. any Yes if a if level does. expecting weak is categories. second was the seem it as incorrectly, more the wondering more another

So will your was to their is deplete are as be decline going inventories you I customers there wondering additional own. with then if some stuck

the if is further have potential a feel inventories, on operations there for your you negative So and do slowdown? customer’s therefore, impact

Doug Dietrich

that very of our can make sites things out to of and those closely. on ahead plants again our at volumes. We Yes. having No manage We're anywhere slowdown hours and look When mining quickly close those moving we'll we we demand. our of on move we get back that to very inventories. tabs pull inventories very keep don't production sure out

a company for What through working inventory reduces reduce see company. when is capital in total cash tends the that a start to tends in and to you to the see and generation you slowdown happen

tabs keep on and Rosemarie that pullback very we inventories close will So quickly. we very on

part our mentioned, kind as real for customer have very customers quickly inventory some take value needed. cognizant that and volume I our customers deliver we proposition of some balance will pullback We're forward Our and -- stock we demand very as of time. of and if we then

Rosemarie Morbelli

a great. at the potential wondering give next potential And if years? a Envirofil. Could the have of particular was I Okay, contract? deployment we couple the And commercial for for us Envirofil signed you you that for look the just feel of

Doug Dietrich

Sure. why that? take D.J. you don't

D.J. Monagle

Certainly.

existing So an at Rosemarie this was particular customer satellite. we had that

particular but improved concept the and validate for to them with slight profitability a worked and this application us so we in is overall customers. both So consumption, the increase

We're let basically going we that take from you remind just deinked me process. where Envirofil is sludge the forward,

program a it recycling So and requires infrastructure. well-developed

is Europe, there target applications. although primary the may So other be some

dollars a little market opportunity at a world North millions the had right we in that look we look inquiries we've something under at market. as active around But XX some you're looking recent tens As now in the we've discussions America. got of that's of and

a that not PCC. it's creating looking be folks conversations primarily emphasized to at typically in So our with nice it's strategy augmentation would and Europe

Rosemarie Morbelli

Okay.

some other particular PCC So reading Am may additional I offering? as of in this words customers result you get that just Envirofil a correctly?

Doug Dietrich

is that part You trust. our are and of strategic

addressing world's basically PCC into in as increase of around portfolio a ability valuable some increasingly address with be So NewYield think it's deink products we We've to the that built with we're highlight with also we that the Envirofil. additives continue to or industry. that the address going and tend issues conversations and to these environmental deal offer a But dealing personal portfolio problems filler to going with we're things we some whether going to is capability increasing problems that world, levels. premier a we that our of

Jon Hastings

Rosemarie. only it technologies with also enable us customers. but pointed new twofold like relationships to our new this Yes. as do conversations presence existing you expand and It's really enables with Not customers out,

this expand we that more happens we're having than for we than on do paper for China is to an world us in allows -- our in relationship. of XX but average are while So to Europe, almost sitting each more and can they around of partnership issues challenges. with different And these, sit of mills they're America we different that terms one Europe Latin different XX the sites these have customers years on them. be now

the in are we us technologies think these span do the the but investment the so base relationship return And solve with there the help first place. to they plus And margins can a thesis that the cash specifically issues as of we problems those those that geared higher that also volume we selling flow that's over over in our base -- base that's business to PCC together. regions the

Rosemarie Morbelli

Paper on then slowdown the PCC may, side? behind right. lastly China what All And if is I the in

Doug Dietrich

seen higher year. it's have may we've gotten from general last inventories economic I activity. -- think, We've I pullback some that had think

go I has China pickup a think bit slower. also that that we've the along some in been also have dynamics in I a of packaging Indonesia there's that. we think volume And some seen that with little

But think. on think color D.J., if I that. there's anymore some I don't site know economic I it's specific general

D.J. Monagle

then that just China. associated general slowdown Chinese the -- by more exports it Rosemarie, the is just competitive dealing the I at more think marketplace also we getting to and is it And and the market the is be up. Indian in look with with fact keeping at India imports as competitive It tends marketplace Indonesian getting are

So has China -- of to U.S. as and well. been course less competitive the

combination items. a of it's So

and that that though is over We come still affecting think value at -- time. proposition just existing slowdown want not the to our highlight But back I growth. it's for customers all our will hurting

that that are had are quite our opportunities mentioned some half in and China. in those of growth XX Doug So pipeline

that still value able have been despite industry to because impacting is we're very equation very local we do So, localized and ability -- to the interruption has -- so this very a penetrate. compelling it's slowdown

Rosemarie Morbelli

you. Okay, Thank great.

Operator

We'll Analysis. our Steve First from now next question Schwartz from take

Steve Schwartz

everyone. morning, good Hey

Doug Dietrich

Hi, Steve.

D.J. Monagle

Steve. Hi,

Steve Schwartz

not that If And behind your when other people certainly, talking you outlook, Basic see of difficult it's those I potential general in inevitably about are hear some the that. arrows It's the be discussion I more could to we look Minerals me drivers the slide in a orange some yellow, your for arrows businesses of will with around that just about recession. affected. just and five just at red -- the continue and to talk expect down of metalcasting sideways

meetings, the days looking these that assessing and biggest strategy you outlook XX are As sit you And six months? and guys is out potential where how in weakness?

Doug Dietrich

to it's Yes. we we what intended predict Thanks, the next right you give It Look that through -- quarters. where was -- was bit next of go hard now, year. to we're kind to Steve. see a little where two slide going

of then and our and digesting be with personal new that that some type tensions impacts are out elements right have consumer how start We care let's see that's that -- on we would still see strong. we're those trade both and the based consumer say economies. we'll there kind see I to are now that we But household currently continuing

XX% of of that. around a more business. growth the is really positioned of kind type steady It's per kind This and driven year in not economics growth a X% of it's to very where ownership X% but terms particular GDP we're of I a ownership recession cat in proof, cyclical That's is it relatively our and in some the won't that's it's say it's steady driving pet and not -- other nature of not businesses.

remediation necessarily environmental be challenging because are aluminum markets of activity oriented. riverbed from we're for projects need or and of to on of power that production are addresses coal-fired kind plants These not have any that to very that In positive remediation done other are that Products the also, type standpoint. business, completed Environmental are still type it be or projects an recession They activities.

think. So that's we not where something certainly

we to continue that. that feel portfolio nice drive a have We will

about Minerals. talked Basic We in metalcasting

some any have -- our we eye in are -- we're lot in automotive North weakness paper here that, about our We there's America. kind satellites in that I Steve. North we area India weakness foundry some PCC, think see So production be weakness kind and that starting really I'm Paper do however see we to stable. coming as America. Offsetting mentioned America. slide customers North now, the our that one on is a it activity in D.J. of keeping of and continuing Right to growth it's relatively new in we Indonesia potential running But general industrial further just talk paper our and rates online. and drilling see down have the

are products toward there's in and driven there. Those our markets. and GCC the Minerals construction some think potential automotive talc I Processed business,

decline. little year we Those sideways seeing drop's be those the continues you'll we're is two year, impacted. year but is see continues could it's So construction automotive for of see I the to if at what this bit probably next and what think this relatively rest stable

still our weakness that Within relatively business, would the we starting see mentioned a to to the I a closer that to you grow. have that industry. Europe. market. room see America bit tell some We But top steel probably Refractories still stable North little we're in we're We've in

on some we're the line coming that well capacity actually think grab. United States. Imports positioned down I in to are There's

going some but top also So closer probably in and there's Refractories. America to upside think to one steel, we're still in the sideways in we're probably that cautious that move North I

cautious forward. we're seeing offshore Energy there. think Services on starting We're We're I to to It's it. in activity move starting the see activity. more

bigger of are year. than where out As But we prices of much mentioned, that have oil we're more again, there cautious still number activity. projects we a kind are in last that

the biggest in that vulnerabilities the given think will Refractories. where I we be impact. Does Processed So probably see most near-term the metalcasting Minerals we've and perhaps And help? you

Steve Schwartz

proposition a thank can yes. that that going certainly you Thank sense in for with you go macro And to you through Yes. Okay. through share value a But situation. Oh, just do and you. opportunity that wanted have offset you. Well, market that. the with

Doug Dietrich

see opportunities that comments value outlined activities to those and where our returns. in because And strength. I highest that investing I brought see that's the -- we in -- is that's And that's cash where our that. drive we flow where capital I I'm those long-term think long-term my find up, no those think appreciate sustainable sustainable, we glad you We're I've returns money those

Matt Garth

put daily of Steve that's where our done we impacting which half. from second markets it restructuring reflective the perspective And we're how what we've doing, at the same time is and to in the the see discussions

talk through the additional and You quarter this is around we are how there to going second the act Doug fourth if we looking changes. about are maintaining half including how heard are discussion the

volumes to is come So how you prepared see said down. showing, variable agile address costs the as we're best in of had nimble what in should but his we're we've what seen staying today Doug and already we're going remarks,

Steve Schwartz

assets me impaired? what million. next organization slide final I leads it matters? is the for just the two the And savings, being severance On in third you for that run Silke number up. at income on million. are So bit So this then and behind question $XX little to the I impairment quarter and the of brought some that's my the your can if rate questions technically actually operating -- one down talk first to in what And particular about is operating questions. X, guidance the alone quarter, builds in that $XX you severance your the is? look be When And a who looks going And could. that like income can

when what's this year-on-year, million third were now can where down I up at quarters to next guidance going look happen So quarter in in you context you the couple quarter frame the savings? second year-on-year, $XX over of the

Doug Dietrich

me one. that Steve, let take Yes.

salaried and structures, north So up service tied found XXX of to people also see we with costs impairment office and kind make a building and company. back inefficiencies tighten you ourselves lower the more our right? customers but looked in that the efficient we opportunities manufacturing adjustments, We when and the is way further environmental. of when individuals in associated impairment So at look the both in to our still assets. further cost that maintain primarily plant base to functions, at severance-related that our The ourselves of -- quality for -- in tighten we some and even our we is look slide, of and to

and still Materials. is impairment service And the and in those at -- impairments see some of Materials customers. some little a those with facilities in and those is and putting associated our associated with majority we lower high remove severance capturing with feel ourselves and we there's where a associated just severance in are So cost there's cost some Performance in we the Performance are severance that -- costs efficiencies tighter and for cost the can that business level asset those

rate those issues first in half, quarter those the the savings some as as That full we but we're $XX we the now, at the There'll through in quickly severance but should quarter possible in and there. right first working organization that Right run start first probably and think company that to for some part of savings we of of now still million it, we're be be -- the trying the the quarter. third full run through move by the we'll will be the through year. in in move fourth rate be savings kind this fourth as quarter, is those know will

Matt Garth

one Steve thing Sorry. to add.

perspective as that that about – on math the really, Just year-over-year the you you're run been the what if Performance – looking change delta in call on do April really May some has third that XX run we where the rate to Materials. June from you and entire quarter, we've to this talked from rate projected

year-over-year the for million combined was you with a $X.X that outlined shutdowns those have we've basis will impact a that PCC on And slide basis on on market volumes what you so and again. PCC that

And outlined then Energy too. we Services, being at

continuing those perspective that of months the but dynamic year-over-year in are two that today on rates been at the again a quarter a basis from seeing volumes bridge to that continuing. large comparison, the just largest we've have is and that's last sequential by market we obviously So the so driver the

Doug Dietrich

even If to general one do move being third and absorb levers are in see pull through our weak going we okay. to at quarter can market do see we further. a need some adjust a point. come we continue these continuing sure costs the deterioration in to we and this quarter that feel through we fourth of into many on quarter we Steve this these we the cost got making however, base we that move we So, projects other don't terms But fourth that as positive costs

Steve Schwartz

Okay.

into correctly? from seasonality model quarter, – one about if could atypical we fourth be you it understand don't how think – going hearing to usually it as on third out the forecast. I'm it, get But than So quarter more goes, quarter and normally out from

Doug Dietrich

think any said, to way because not saying now the from continue back seasonality. decline think of right the third quarter. our discussion, fourth this, in I to the in should technically be from to We to That so and delta same fourth there's third only the we the third go markets. that typical. the that acceleration remain going the watch fourth quarter seasonality our the But the they're we're levels, the will to of be

Steve Schwartz

it. Got

helpful. all Thank very for the Okay. That's taking time. you

Operator

We'll CL now with take from our next question Silver David King.

David Silver

very actually question. capital Thanks I a had Hi. Yeah. of PCC I on a then working had much. couple and questions

funnel head – the in my mention particular, when in just you the look announcements hoping on of PCC, a of comparisons XXXX time, first assuming have project sure you your I in when to nearest XX. plants? project color or should clarify from maybe And add you've this, PCG. expect until for wins. the might the and Then, be little I'll ask the maybe that very So perspective And past to year of we revenues question? I'm think see few That And was want your that of PCC the kind would used year-over-year high a just I you've be you to from of rate. maybe success but positive could make kind guess one years, quarter would scratching but next – I so one, I to discussed had one new I'm half it I I number just won't but think be we – per I like

contracts? Thank of a I the when expecting PCC project in is mean, should new be that announcements you we funnel meaningful deep, project say – XX new pickup you. So the

Doug Dietrich

Okay.

main David. quarter and a and Let in start year. now, new two – that the on next expansions me second late of Right projecting come in the we're we with now second volumes going the that – probably have they're in few right are first projects late one is the quarter works to –

third volume to be put about Again, XX next XX months will in some XXX,XXX of it coming a place. amount to in So takes have XX to the over on the now next we months XX sizable year. ramp – up hard quarter so should right be But to when exactly and volume on those come of for time second next it's predict will through that specifically. line tons

opportunity sizable that You'll come see amount of in.

bit And to of products that's to of we're at we're of of kind opportunities X% of We applications there's about to bit now PCC Balance will mentioned, going the some X% give I talking and we because we're The D.J. some shrinks, down of packaging for and expense opportunities always volumes. you declines factors that in mentioned technology seeing I'll come some take – about pipeline that pulling right moves of volume a around out but opportunities myself a target those it number that's looking technology this. can that how forward and in more is base as PCC against and a and some little How that a those new volume new that start not feel move let and products develop kind earlier our backwards Matt over on for successful China. they But certain of out, put and tell also timing talk some a list be we or new D.J. these to when as filler, pickup pipeline to a both little for time? maintain more going come world based moment way about pipeline. of and our into are to real customers. a and XX% goes we've the of XX% maintained always to

D.J. Monagle

Yeah. Glad to.

organization we terms things that to got to or very the the for rate decision in hitting a – success high person have a of So change, in makes success we've starters a extent rate.

a contributed has So leadership that's market to what position.

mentioned new Doug that, I part of go kind which that to penetration packaging. us into into other is The for would like this further is

awful very and our I along as most that's of in and lot regions opportunities, working are we at an – XX those packaging hard So in are packaging are to the our and America all opportunities presence a-third traction evolved related And that those look in packaging of that and increase the are North regions opportunities where are Europe. of of ones has furthest those come. probably

is able but So relatively how more come in we're with to new to regard that to dynamic this. those, convert

much the has regulations terms the that's it. that we coming this on of Chenming, slowed with us dynamics down us. it have expecting rules that decision taken But environmental of China the than we in middle is line all that have had XXXX. of around were and mentioned things the longer earlier that of in seen permitting major And for One satellite I earlier, time

and we much contract call slowed China can the it volume down conversion. to to which year pretty with in else convert speed revenue it's So a a a everywhere contract nine-month into

color hopefully some that So gives David. you

Doug Dietrich

want I David to Yeah. question. sure we're your make answering

You the acceleration? from Well, been an that. an do acceleration few has we're expect you we I'd to where five see three prior expansions say also over and said past tell I'd years contracts to

can go even we think faster. I

enhance we I think we've pipeline weren't is reason years to product. got there's that's have We've FulFill an such as NewYield even got got ago opportunities broader that variations four we had got a go developed we can FulFill of We've single product that got we've of there. other a some nice new of pipeline older and now new faster ENVIROFIL. some projects think I because that We've starting on the a technologies to product, variations replacement chase. our

you've after. multiple fronts So got to go

new So have and yes, we accelerate to after I would expect contracts. fronts that more kind go of

of for we said, amount before -- We've one several years signing. time. a each these takes satellite of have chased contracts different That

we said we and situations. exactly we've while I were months. predict to we of and come us having at little be on the other that even -- be fronts six and a able have and in competitive can our the discussions to that more competitors. hard On to vis-à-vis work and hand, strategy that to more them go, do hit move enables portfolio we up, those bit and It's to broadening contracts these let's think had start But

David Silver

this. Thank kind you with for new I'm the of color.

all for detail. thanks the So

D.J. Monagle

Sure.

question, working net I your in over for of about wonky. use question have capital time. a being of apologize advance I kind But this kind of I'll had

here there working first in the $XX changes use So of your first half was the know so the of in of But operating use there accounts was look of flow and about the at I'm assets liabilities if use capital; so at talking another kind of I working cash was in a capital and don't capital; XX-K million section and net XXXX working -- or statement. capital. XXXX net there larger quarter of capital; was of I use XXXX working there of a a bottom the the working

think when base tracking around of $X.X I same that, top on mean, kind and about your year. think was that level at And I XXXX billion around revenue you're I this $X.X line billion

a of to and use release in I'm my that kind of or that opportunity significant make over I'm XXX maybe whether continuous working scratching requirements -- an portion time Or there's that years wondering working capital if $XXX So over maybe you. of million a sense? three head past kind net so? of net Thank your of increase capital the

Doug Dietrich

Matt? ahead, Go

Matt Garth

David. Yeah,

have look into been we tilt the revenues, had have geographic. what been outside been talked over that in years And on growth past think timeframe if a you of that with moving is more of of we've towards Asia, it's as couple the mix more take receivable regions over accounts a the North side. about our America, the how we've terms the into extending I

a same shipping moving that clay the and as between that customers everyone ensure hard winter, we throughout higher keep clay growth around lot to and running and side, the we've available you've processed, time those Performance allowed that in on and up conditions, and running. And our customers to stable. of world been the keep reasons performance difficult number to the managing us stock facilities very terms stocks and have the over of we've keep the seeing a level that to the increase very safety been clay is some overall of have we of Materials our up At had us safety timeframe, be

with it about moved second uptick million was that you the it. as XXXX, quarter, in worth in working Sivomatic saw -- brought you into acquired an we As $XX which capital,

through look now at overall today of you million to some when difficult we've in supply capital mines place about that stock that level. us mix the periods. saying growth managing total $XXX issue so the through $XXX logistics trending direction. has a those at continued million level at that our what safety of Western working that geographic been in the And items, we're we running had chain higher in been And helped And that same time

And within year-over-year has throughout the this grown. to is items inventory, been to that's we're now a level this what efficient system. working on your on. pull you of efficiencies pull additional the working that And from and yes, logistics delivering the terms ability Where are that have inventories how plants basis we've working we your The more using operating efficiencies question towards flow in are and what place, absolutely working cash is capital okay, is, going capital. in of

accounts receivable X% down about they're accounts as up an perspective, From payable about X%. our year-over-year

that So on working free materials going the calling to strong flow we're to And helped our that and those of through on the terms drive all has inflate but we to do in raw higher efficiencies. way I to that. of levers some overall mentioned bridges, of seen cash been drive we've you've inventory working out that position, capital. continue do have levers

it where more part range, in million challenging we're in that been about $XXX It's these probably in free the around current $XX the of mark. embeds in That saying cash CapEx reason even environment, that we've million are overall although, flow. continuing conditions conditions, there $XX this million market target in million will be to to $XX

that range. is tells based operations be you million $XXX So million $XXX in to from cash that the that on going to

working working to to drive So, out capital forward. hard going continue

Operator

JPMorgan. take a Kueck follow-up from now We'll Silke from

Silke Kueck

Yeah. Thank you.

PFAS-related them any that that very Thanks big small use used in of are of product now? are really clean issues? your in Fluoro-Sorb of much. how And a Just future? the up increased you see the being one, do Or

Doug Dietrich

Yeah.

product, on actually dimension. that turn We've was you number product of a one But going launched been for second just that. formal our I'm of to to working had that we of Silke So to a over a That highlights years. give launch. Jon quarter. the We

That remediation. specifically water PFAS Fluoro-Sorb is product toward directed

a parties, exactly, see number designed the done that's studies We and recently, what So some we yes, it's demand. of companies, that for. current interested some just launched with that really good universities it's have

size talk we're seeing are But forward. about for Sales of technologies PFAS for that right we're the that I now. the that very portfolio and the on that portfolio that's actually of demand we're of at it says And low new of part these quite opportunity positive going the our -- Fluoro-Sorb. opportunity looking

a give us do Jon, want you other that? little more, than

Jon Hastings

pretty it. Absolutely, about about Fluoro-Sorb. Sure. We're Silke excited glad and you asked

some mentioned, Doug technology to focused too new now end-users has on tell. As entirely it's right other probably remediation, early than PFAS But that.

NSF of markets Last required. us time variety that's in where that allows we our I play which a reported have we think certification, to

products. We portfolio right a product of four have now

just marketplace the PFAS we in product that was launch successful efficacy it versus applicability treating the And predominantly we as academics but and And others water four our water soil in talked in. either the very came of in had in also about in think had now well. where Chicago, I in the a

searching and some solutions. had same demand, And people of for that of effective It based lot customers in launch. these on a a that, had there's we very markets, you was pent-up a variety of press. At launch, know lot also as we a

coming lot of expect How quarter in customer a progress on And early got trials. well. our It's this We've going to tell. to we likely quarter. a little big be? as sales here fourth it's our And first

get a millions. have we probably But we customers. read our we And know you We demand is back as along accurate visions this of And don't the with we'll come multiple yet. tens the with from that product more in get further launch.

Doug Dietrich

let me add. And Silke just

really Let horse. kind take out is is what a will other me a It's there what there give But you low PFAS we have is product quick are water. cost a that -- value of is. proposition this of products work out that that

can but you get the to use the far low removing And cost can products far very the entirely. We you all other way at very get contaminants, then not way, along a position. very it of

looking heavy this -- we product. But they type kind think targeting something of we're new that's And do I where can work. hitter that's horsepower volumes of of that are for high that that

very again certification little to goes. positive. a now But a standpoint how and tell it right standpoint, from testing So, it early customer standpoint looks

Silke Kueck

Thank you.

Operator

any for the to this I'd Ms. closing At time like to Buckwalter call turn remarks. back

Cindi Buckwalter

soon. forward you all look Have speaking day. with very Anna. to great very much, Thank today. you for again Thank a We you joining us

Operator

today's And once We conclude for all does your that thank you again, conference. participation.

now disconnect. may You

Minerals (MTX) 2 Aug 192019 Q2 Earnings call transcript