MTX - Earnings call transcript Q1 2024 | Minerals Technologies Inc.

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Operator

Good day, and welcome to the First Quarter 2024 Minerals Technologies Earnings Call.

As a reminder, today's call is being recorded.At this time, I'd like to turn the call over to Ms. Lydia Kopylova, Head of Investor Relations for Minerals Technologies. Please go ahead, Ms. Kopylova.

Lydia Kopylova

Marie. you, Thank and conference everyone, our quarter first Good welcome earnings call. XXXX morning, to will Chairman Aldag. Today's Officer, led be call by and Financial Doug and Chief Officer, Erik Dietrich; Executive Chief

open and about Following Erik's note securities release reminder, of our the the constitute statements Doug the laws. meaning forward-looking the in may to during earnings call statements prepared we'll Please some this and made statements forward-looking slides. questions.As contained it on remarks, of a language up cautionary within federal the

disclose appendix financial SEC can may note financial are our to today Our forward-looking materially which and cause comments found our certain I'll non-GAAP reconciliation also filings posted on risks GAAP A from our uncertainties, actual measures. it Doug? measures that statements.Please this differ Doug. of over website.Now our to to which some presentation, of results and be to an turn in refer earnings release these

Douglas Dietrich

Thanks, today. Lydia. Good morning, joining everyone. Thanks for

meeting year Erik factors a a then a our come We're for into through we'll today's saw in some financials Okay, strong play highlights let's get posted to quarter. minutes I'll you the strong and as go started. share quarter, by and an MTI, the to drove call. year, of of And start higher you organizational growth provide streamlined for that that, will then detailed from and and core company few press outlook take then initiatives performance. our the and outline quarters. release, take this that several the quarter the questions.With presentation deliver will today's results. into organized of is also open initiatives with I'll up the off second over over give end a markets product that next you lines The driving our levels similar our we the structure, main also to our few a record reviewing insight which internal let's technologies around our dynamics current highlight our last and begin combined markets, first I'll quick few record actions for resegmentation a to the quarter. and which

take the slightly compared ahead performance led safety, operating to higher-margin delivering. earnings you initiatives for in are an company of deconsolidation the segment Sales the markets well of Barretts savings. capture higher-growth, highest-margin me The leverage the $XXX the move the strategy up Our across are we've into fastest. pricing income some Overall, variable target the Minerals, also continue flat per all-time & Sales built.Let the first and we're Specialties through adjusting on quarter and were and and the initiatives savings relatively flow. pleased these to last cost Combined, grow, our margin reorganization, is of Consumer with share momentum operationally, control to expansion and to year products strong our highlights. to input focusing quarter. for records record million, cost and fourth continue executing were cash and improvements. is business quarterly and from strengthen and pace, productivity we from Each growing

line.Within bit products. to Engineered I'll market Consumer personal cat increases an by by renewable weak care of driven lower for Consumer drive litter board with & X% health Infrastructure Household care underlying Solutions feed product compared filtration, continue remained on last growth over the were product up in fuel by last maintenance a the private into by the geographies. market.Within rebound America more We continued foundry North demand in our across year This America also similar outages & year, steady Sales rebounded Engineered January, X%. Additives this track, but the Environmental a animal paper segment We driven strong sales increased foundry in primarily for steel calcium basis. line growth & by volumes High-Temperature year, its label experienced Care in to Specialties, demand and X%, across solid. and and of quickly driving additives, last Specialties stable Specialty on segment, driven Western Personal line the sales was throughout and strong in & and sales Technologies a conditions what's fabric customers the in pockets on from line go our a Solutions sales major remained demand quarter, in conditions segment, were U.S. and product product market detail to increased few ground with in customer moment. the and the carbonate in North products sales Underlying packaging from

an Asia. business continued power yielded and over example organization, our a business actions, of a $X.XX, & last flow combined year model. saw lower We was uncharacteristically profitability. commercial construction. period maintained mentioned, also projects and actively seasonal of solid of large line, We These last operations. involved a very last and reorganization quarter sales Infrastructure the were decline.As our Environmental were in last share the year $XX Cash the per In input costs, also lower year. were on growth at also strategy Earnings the to quarter couple strength XX% margin than secured operating last volumes record put strong comparative new to remained increase internal focused operating foundry slow the pricing, our a also in of sales increase environmental from of mix, over million remediation efficient for due to product operating our strong this is this focused strong million.This year, of income, performance and increased a each realized up sales safe adding The a year. I an quarter. of We XX% good $XX savings with contributed XX.X%

industrial that and and stable long-term with a the shareholders we cost into balance past and quarter, to the flexibility. want to of the a consumer we've the returns new of sheet of of and the the growth. that pleased excellence few and strong strength leverage. quarter you increased that flow, advancing margins on driving give operational we give year I take back year. sense few provide highlight quarters. few to for the color the each expanding business It opportunities We're the products and results higher-value should the of built market the For new minutes next head innovation half a maintained positive years, and of leading see through product also the businesses you a balanced on.As several portfolio fixed are I'm second and conditions cash into strengthened we start to second Overall, a products conditions over track market bit positive are current We've combination through line for

backdrop, also construction general seasonal top and our and be are the markets. improvement of by product seeing through of which compared a the few move this Personal with environmental point due strongest robust. Markets as & remediation As start out continue product I second this served I'll typically a to year, the residential, to lines.Let's line last We're our regular Care. quarters in Household third markets on commercial strength in seasonality to

product drivers us our additives We're animal relatively develop natural in uniquely this for phase, like We cat year.Additionally, trend. absorptive system delivery Global core line, demand market paper our for our coming has and products global in our new our applied will Additives, hygiene and we're destocking are for North the packaging last new general solid. innovations moving quarters. in positions remains and personal moved we're this its markets solid. sales on cat The care fabric over last North retinol this the from pet Market also provider for for in pet care litter product seeing book. aesthetic are technologies leading quarters.A gradually for remain residential and year's few mineral-based America seasonally stable, are benefit the conditions being market and America additional improvements couple of with past development, and filtration these order of to through and market for fabric year. trend consumer past -- label period, were in personal the Innovation, the spectrum care and fabric normal construction like ingredients result PCC commercialized natural across line. ingredients health, products that solutions is initiative growth care.In for for detergent, and our have improve care conditions more to satellites continues, we've to side market entering seen Specialty animal in wellness particles feed this litter, These early private by paying benefiting demand and scheduled customers strong demand of have and toward compared in litter customers to X for several and products, we and collaborating mineral year satellites with driven new newest year, that reserves start to packaging improved dividends. product fuel seeing the this and renewable paper and collaboration close We're focused each growing.On markets, last laundry And growth are next. is up softening we the that X is our from into commissioned and in

X X are is technology. for for new large white ground calcium X these NewYield are carbonate our X of and our incorporates reminder, NewYield which also a As of technology, PCC, for plants satellites, packaging, recycling X standard

at a global deployment continue technology further into platform, aimed them half year.In across have positive relatively we in and all, engineered point, heavy to where market strong.A solid for continue to Asia process steady analytics product the QX back many our stable. experience sustainable out few of of product line provide in and for we've manufacturing have of to packaging areas America see market mentioned demand All remaining demand we production Technologies, been value geographies innovation our filler and and to opportunities solutions. And We this areas our for for at higher that High-Temperature automation our the and processes. customers' outlook industrial casting focused our of pipeline data have remains a for here. this the main point truck Automotive, we our I've conditions blends. North and of

measurement application for of enable the Our conditions automated units this MINSCAN our furnace blends. and furnaces electric higher-performing and subsequent refractory These are of more of the units durable result a development. arc

recently to year, the contracts a actually beginning these entering a been this units market products announced past the these you are groundwater are exciting quickly of signs increase Environmental positive barrier XX hitting subsurface new line, is drinking we've We're drinking we product. aware, FLUORO-SORB is is mixed that months, point. significant and remediation to XX FLUORO-SORB for drive in does, Infrastructure which strong PFAS expect inflection the conditions remediation limit area development, for we a EPA customers. turn, season This used of market there construction which currently toward national for seeing commercial pockets PFAS in of growth year.Our an of and line it Over long-term water. and But product once several We've for supply both of will and it from market for standard because remain for given refractory throughout are is the the but related secured long-term product I'm are many waterproofing this line sales & sure projects.One X inquiries our to the our faces products. we're to years. some benefit trialing installing for water beginning that establishes and highlight cautious environmental This opportunities. construction vapor the also product of very relatively We and an projects, the many market that chemicals units,

and doubt, water initial is versatile step, and expect stimulate capping No in in market deployment is regulatory crucial for and extends is this remediation systems. it the in regulation PFAS FLUORO-SORB. develop its sediment explicitly solution a for compliance Our targets this interest time further to equally and and It and will we cost-effective move applicability molecules. associated to effective municipal by PFAS and wastewater and XXXX.FLUORO-SORB drinking groundwater be beyond drinking full fully from to take water

more We're will that trials remediation large run throughout trials to pilot mostly year, these municipal projects. opportunities. several of plans pilot water, stable revenue-generating but into for have this XXX for also confident convert groundwater We many than

quarter. water market the opportunity term, around significant as board Over the long sum see for from the up, we as PFAS a MTI.To second world of conditions seeing head we're the across remediation we generally the into growth positive

lines, with product momentum and and pipeline quick have through near-term to our each of each with we our macro in trends, progress innovation I on Inc. Additionally, will want line Minerals long-term of continue market Barretts and drive product growth.Lastly, our that our several -- a both initiatives, developed update give aligned

we As BMI's the Court you an may ago. assets, have which was agreement entered approved Bankruptcy sell weeks seen, to a by into few

process. closing as continue to in focus is working as We'll on that of stakeholders, to through the for to an Erik? segment early enables well but represents next from you we're forward will financial financing are last delivers possible.Now, in outlook currently core be the bankruptcy it to progress, informed not was advancing Erik forward transaction, also second strategic the clear the with keep long-term move the our is MTI's sale BMI's it fund only as value BMI's ongoing as objectives. We The exit a to which our place certainty in talc which highlights MTI week. for process. sale review This and details, for I'll Chapter quarter. expeditiously to and turn important additional DIP the from and repay over year, the various put XX used Proceeds step slated progress business

Erik Aldag

providing Thanks, I'll first our quarter. review a the followed good everyone. of segments, then Doug, outlook wrap for with results, by morning, and up and of a start I'll by summary second our quarter our

the several very the to quarter. Following performances review with in for quarter start my let's had We results. our questions.Now, remarks, first first we'll record-setting year turn over call the a strong

year, ago, projects QX as last comparison the including that U.S. we we was sites start MTI's year-over-year Superfund large the the point basis.First operating in had overall the a sales sales strong product $XXX margin. range the sales basis to sales across entirely Engineered growth Specialties million, by given Infrastructure than year, year grew In up by Underlying this underlying quarter were slightly the prior versus basis. in segment driven the on in an quarter underlying at revert lap operating a challenged, prior Consumer First million, especially projects. the line growth here growth remediation year a driven were conditions driven for I'll XX% on & sales from & note an was Solutions period, improvement mid-single-digit up X%, year-over-year the volume relatively segment, The few $XX to we for by slow expect lower income Environmental segment. XXX

income As you on bridge margin operating can in QX income came slide, see and this in the the growth from X areas.

of $X drove includes points that impact. income of prior income XX a in also income mix BMI. favorable mix and volume million should by First, in improvement and strong year improvement, the driven higher-margin from resulted I margin of highlight sales which basis bridge this products,

was So $X shown greater bridge. the from underlying million contribution business in volume/mix than the this the

margin basis Second, year. customers. our and provide our of points the disciplined to million pricing contributed to of $X that income to is XXX value versus improvement we ensure Pricing helping margins reflect last overall

or operations restructuring and productivity realized improvements basis margin, improvement million as conversion to full drive variable run savings. of program last teams of the reached continue we year year, points cost as rate versus has cost $X last our XXX we our at a facilities, Third, announced and

level and through to a Day from volume versus margin opportunity XXX points basis also particularly special significantly we as with up to there In outlined also we are on of last were QX products $XX first to margin versus record inventory.All leverage plenty and in our quarter.Now, operations portfolio.Earnings input higher share was million XXX short, for fixed and above a such improvement, for we our stabilized improvement quarters, the strategy above is Specialties. year, level incremental further margin year last executing of we year, we when freight addition, strong and last and $X.XX highest-margin margin as over prior of points was the working above XX.X%, XX% Investor items, last the of XX.X%, as year.In EBITDA energy favorability flow we a innovate first the the last basis across the costs continue have we cash products, few have in excluding cost contributed and as from of our segments, record with let's and the cost Consumer base, continue year year grow new & beginning representing XX% commercialize the quarter.Cash represented prior per up review as for gross

costs, packaging we our see And were and year. the to increases of volumes higher our cat from remained sales XX%.In we quarter and ahead underlying in growth volumes segment.Looking for expect and Solutions growth ramping and price rest typical from sales Asia. sequentially increase Improved XXX for second million, maintenance & with a we our Household newest In growth. improved X remained were Personal X%, America. the in see was basis impact an in which up products the sequentially sales expect year-over-year up across Care strong which changes. strong, residential were improvement has seasonally on will new Household drove quarter, resilient.Operating remain million digits, mid-single year-over-year.Now, by margin Specialty another expect We're underlying disciplined XX% the customer prior markets. we'll of the satellites satellites to stronger Engineered for quarter, construction, from line offset around Meanwhile, North & by let's paper income by $XX driven in $XXX in favorable quarter First for Personal mix, construction in seeing this demand to XX.X% were X%. and X% in income Asia, products Demand with across and sales we basis product higher Altogether, review operating year-over-year, Europe, and operating in quarter this residential up offset Care formula-driven was outages up litter approximately up driven the points XX% line end and in income period sales. segment. Specialty X% sales volume pricing, continue to mostly input Sales operating helped continued growing Additives, demand first to improve up Additives, X% sequentially applications product year-over-year for encouraged solid a our the second productivity

Solutions the High-Temperature than First the quarter sales X% in lining America early line outages saw as Engineered first foundry X% improvement quarter. sales in in projects. Environmental customers year. Asia. product across product of North we were construction continued and Technologies line, in were lower, lower were XX%, Sales our the million, last driven segment maintenance $XXX took some temporary environmental & foundry in In lower by Meanwhile, commercial softness in by volume Infrastructure our

in steel remain product mix, year.Looking disciplined pricing, ahead improvement in versus second improvement quarter. quarter, New expect that that mentioned, to the sequential basis improvement Year the we a to productivity XX.X% X% margin market improved in lower comparison.Despite by performance a income remediation large improved resulted was affecting I are operating driven The points conditions the cost a with to first As due QX last million the and in control, foundry operating by we $XX first Asia Lunar favorable holiday foundry margin few XXX operating to the sales. and had XX% also stable and the quarter prior solid the of sales, projects segment to in in

& increase projects. of mills We by several U.S.In and are higher the environmental installations MINSCAN Environmental EAF newest seasonally sales also steel for to see as technologies period the at stronger commercial enter construction sequential customers, Infrastructure, in a expecting in we'll sales we driven our

to flow. operating from market too improvements in up segment activity, with As approximately to first $XX record point.Overall, generating delivered our million quarter. bid it highlights. another this in sheet is from of quarter, Doug and balance up cash this quarter seeing of $XX million a we performance are flow hit but We operations the and first has say XX% free totaled year-over-year.Now, cash mentioned, sequentially inflection cash CapEx XX% we cash expect an whether turn and early strong million for the second $XX income in flow let's

million in million Our outlook full free $XXX range. the cash $XXX for remains flow unchanged to year

returning deployments free We balanced share to debt shareholders, quarter, million $XX including the first pay our to cash dividends. million in million $XX continued our flow and down of $XX approach repurchases million using capital to in $X of and

on sheet So strong. far, second track outlook we've our authorization program first EBITDA.Now, the was net the million the complete share of repurchase the Total liquidity the quarter end end balance in $XX completed program, $XXX million, $XX and remains ratio The are October. of the the our by million and we at summarize leverage very was quarter. for of X.Xx to I'll

seasonally MTI strong a & demand in for expect and Specialties, to products for the entering residential performance second period We remain for consumer-oriented quarter. are Consumer we stronger we expect In a strong, construction.

will and the We packaging from of new year-over-year Solutions, High-Temperature and growth we continued from Technologies. Engineered In our satellites. paper expect benefit also sequential ramp-up

earnings a seasonal the $X.XX, second representing this product $XX call expect sales year-over-year share $XX with similar expect quarter Environmental for last for and and for for X%, to for income in strong between activity, per & growth over between a $X.XX company.Now, to and another returning year. between operating level line turn MTI underlying the total the million, X% million In We sales we quarter, and questions. also I'll Infrastructure uptick

Operator

[Operator Instructions] Daniel We with will take from Securities. Moore CJS first question our

Dan Moore

where I opportunities? -- the PFAS opportunity about on most if the well, do And Appreciate calls, with and opportunities questions. are the formulations seeing Specialties. the color. lot you've cetera. most the and guess, don't oils, emerging a from taking emerging this the call a about or for And sizing thanks milks, how as laid term? animal out the follow-up Erik, How you near do and Obviously, edible penetration those feed, think & pull new Doug retinol, et several Consumer on of you alternative we mind. Start last think we

Douglas Dietrich

Monagle I'll some product color. hand more line. Maybe about Personal across give Household & that then I'll the mostly & off, product In D.J. it growth We're kick seeing to let's it line. Consumer Specialties, Sure. talk to and Care

to Our growth, grew I grow, renewable think, our this fuels, came XX%, And care. believe, from -- business past quarter-over-quarter. We're continue We're pet continued seeing this quarter. that specialties quarter. fabric I health business that care X% animal seeing

board, been kind this year-over-year. really that across it's the the Day Care Dan. should I grow of XX% that Personal we that's And our X% So in think range compound pace in Household & that to Investor business outlined

acting to also natural and it's following So doing and -- we're pipeline of with that we're what in in we our I thought do.We're trends and it tune would participating couple that. additives, a wanted highlight like is innovation

behind don't the growth think pet you markets to some -- only rate.I any know, not we will to feed that things care it type give with care? I So D.J., particular fabric of innovations have more continue growing, or but that products if new are want in

D. J. Monagle

Yes.

it private aligned with their label as that forward strategies, ownership. because innovations the with help Care pay So They've one them, some off. been Household working their across understand with & business gotten bring that strategy are thing things pet the to starting in in that any There and customers, pet strategy, label the and they that with private brand enhance is Personal to litter of particular, think well and board. they of that Doug on the alluded several Dan, tough future during statements. Sticking kind zero on to has going had I it's side, exciting mentioned

pleasing. cats of as for them as associated are train packaging, goes those owners expand help but so, simple box. which litter recent aesthetically improve their anything then things pet the that better will litter, get further And the more things then, with lower dusting, And the more performance additions and cat are and

that You our the are with go well We we in with consumer that's customers renewable strengthening, progress specialties trend in Additives is fuels. the that group, coming especially these now, key and and our growth relationship industry. pointed business, year. engineering And great remains new new the we've the construction And got from to Europe. And do then very household, robust. crystal Specialty different are is the we competency crystal more pipeline automotives supporting we in, the coming see pull satellites. in and Doug working personal the very for that several macro advanced coming little doing satellites go the on same see we're very kicking new strong.And seeing further out this applying competency. And sealants be that shift, engineering, if core on that from to will the and a throughout growth But of then, with products

from food Some industry. pull also the

That to alluded across in the to gave that we for had also of you it Investor and are the continues be starting in to exposed there add stretching category. is what area also perfectly milks. as line non-dairy that board, the laid Day. and alternatives I interest a to know out but lot, whole but some get markets You an And as branch people us, out further really and that core we can I we're we to new with explore competency.So,

Douglas Dietrich

that Does help, Dan?

Dan Moore

in in to PFAS, color color, certainly the scope can you years the the EPA more opportunity, 'XX, it happy does. market? potential of Yes, that And in certainly and player on 'XX, any of see the as provide you Any EPA not of decision. key And a FLUORO-SORB terms far about think helpful. X approval kind for but beyond? appreciate as Very and Doug, update then, how as

Douglas Dietrich

term regulation. pass to Brett on you talk to longer you One, want working after what, in we things. I'll we're a what's happening I'll do with kind maybe of the give And little what go? Argirakis what's I'll on, X going about why you don't the tell here bit that. it to Brett, near term,

Brett Argirakis

Thanks, recap Dan. you some then I'll let the quickly, sure. Thanks, Doug. give me regulation on activity. update Yes, our and Look, just

you as full in in effect know, regulation, promulgation passed the years X new was the be from It'll week. all, of First last date.

a So parts meet time us put be of place capital per to bring -- That that basis. trillion April end will at capital allows the to on the in any regulation in XXXX. regulations for to

expect Although really on you let over regulation activity. years drinking even regulations can a update come the throughout water, more give to do is out little me that we next provide few our verticals.So us for the this additional opportunities

We have had have a state federal for level, the agency both regulations of came evaluations -- a options. lot and of -- date to accelerated activity the They already regulation on from before current alternative to out. discussions, have options the

remove We is have of our EPA, agencies the our PFAS. activity. goal PFAS continue the ultimate with available of as fully are all the one prove for our to to FLUORO-SORB drinking But to is of eliminating for really and and municipalities and closely These local well products FLUORO-SORB use our the best aware been collaborate agencies technologies in water.

very We will them. continue closely to work with

is And implementations FLUORO-SORB full-scale in now, the drinking water so, currently in our X Northeast. treating right technology

We trials PFAS have his have remediation in piloting implementation this at implement do outside global the few of America, several municipal on be as year, expect And are to pursue we Europe.[ in-situ projects in to we those to but trials do control The now ] mentioned this North drinking coming continue and those additional probably to a implement pilot going full-scale But Doug over we in on of source. majority month. water, one and speech, XXX are water. mainly

feedback like do to test moving benefits to our projects. just forward continue soil pump on feel sediment about a But regulation. to that the capping, be in few the for good forward. core Some prove product it getting, based time additional stabilization and well might next support the as moving little revenue FLUORO-SORB, and we're results for examples mats take test applications groundwater confident the we reactive the Really, conveyance we're new will treat it's stormwater really as other generate and continued But cautious, activity over going to to interest years. generate expect and to and be sites, some

Douglas Dietrich

Dan, I'll the just term. add long

that into will As remarks, one get market. And some broader for and water and right closely But a long-term is got X just is long We XXX municipal Like agencies. going be be providing is just a product trialing sure But This municipal technology. now sure in But a said, think effective opportunity and years, cleanup, that's something as over a that bigger product in my want next for the going we've making cleanup been so, mentioned, for than as the us market those best-in-class as Brett I through I -- We're we're mentioned, equally longer growth us on term, even I or from working mentioned working doing that great we've product. benefit for position this that X our I projects. is think area, to sales. market. company we to -- there. participate great now, this that is could a the We're with water develop it. able working I focused. to We're to big keep trials. hurdles. We're time. and to

in we're So near-term big is and this company. long-term for a opportunity nice a spot. good a opportunity the But yes,

Dan Moore

for Perfect. jump me. Last I'll one out.

a in do to quarter. QX. this you target margin EBIT is And mentioned XX% your QX, hit Implication that stronger better and little than typically bit periods. seasonally QX already You

this And just to your kind kind eye quicker, like think Or still exit if getting from sounds you year. this And how but asking not to where go do looks Is expect so, I'm we seasonality conservative we typical you to at if it, that rate it that there here? XX% get great. of hold So update XX%? of we point. about that

Erik Aldag

Yes. Thanks, Dan. Erik. This is

now, we be should assuming the XX.X% all you year. it lift expect as to first equal. this that right, level said, in do, quarters, great we quarter at else maintain a place a typically above we're in going is you're can Right third XX.X%, second and so least forward So the start. And

go be the a terms feeling the the through We're margin volume rates, but pretty we're of year. middle out rates. good improvement energy We'll watching things should trajectory. So see the if helping we managing margins an sequential in summer go uptick to that over X long as we the about quarters over tightly do energy way

you XX%. quarter to a do in the So I is guess, a XX% first year, going we in mentioned bad start. XX.X% place were If not to

construction help margin So commercial in right but input XX% year. guess, the but would do yes, as see trajectory help pretty in the now. It we this some costs, good major as we long sure, feeling if I early macro about changes no can markets, it's from got year, the or for we we're

Dan Moore

the the Appreciate helpful. performance. Very on Congrats strong color.

Operator

Harrison We Partners. Mike from will Research question next take our with Seaport

Michael Harrison

those segments, called is can dig I productivity the improving That's segment the Solutions help just XX% gain kind strong of wanted X% it improvements. you you the in and expect of of productivity performance, specific believe several productivity lot maybe Engineered kind a Congrats But to year. curious and kind in what's you using? year. of the just understand -- start And year-over-year on in productivity bit little to number? the on segments Consumer understand maybe dig a evolve numbers. how margin are believe a commented of rest that I what kind us some -- to you segment. could I'm like kind you sounds I'm the bit in next of sustainable the that both was gains for hoping are in you you And the us we you Can into maybe out on I those in that a quarters? -- curious, said bit little baked in of little both metrics help

Douglas Dietrich

operational you removing month. processes, processes, business Thanks is measure set waste metric standpoint. indicator it's our measure from We're looking every Yes. over name a that key productivity for it's Thanks, efficiencies, it. constantly OE Productivity of through operating from pass start a Mike. watch a from to It's it targets, and excellence. We We Maybe something -- the I'll where at it productivity and we of question. we part our Erik. processes.

with -- part -- moving are is inherent we our new just this working that's so, that of remove teams the We're Kaizen lock company something in in events waste, and And culture. to processes, standards. redraw

X So, Erik, was? where X% the that and it think XX% is it this segments. in was I year,

Erik Aldag

tons And yes. hour basis. right, That's that's a -- per Mike, worked that's measured on

So looking at. metric we're that's the that

Douglas Dietrich

Do forward, forecast going Erik? him you a baked give in? what's to And want

Erik Aldag

Yes.

We was the did quarter, operational gave in of first strong of expect had. A continued guidance that -- exceed that Mike. part we we mean, that performance the I the the -- we big part

conversion this really working are improve is the the operational and Doug improve closely facilities, teams variable we cost per Our something well track measure to tons. said, like at At level. productivities, and very manage

those embedded the to margin through So we're continue of the expecting That's something into profile the year. company. productivity improvements that's

helps. that hope So,

Michael Harrison

And that, helpful. up of you cost basis a in number, kind your very just cost year-over-year is to here, and just in cost numbers improvement looks you're part assuming And to metrics productivity then, that it's talking of have slides points maybe of costs. sounds follow of costs guess, year-on-year. your also input of I'm some like about. it But these part Yes, that XXX that on I input like and that contributed related were improvement. it favorable

little So and maybe into seeing input looking of us out we're as QX. more you're energy just bit give what QX costs detail terms on a in costs and

Erik Aldag

Yes. Mike. sure,

$XX seeing That versus freight we're includes lot versus it, in rate the the the improvement the improvements and in of that yes, versus first million That's the program and cost operating year. so a restructuring lot $X.X of million call million Particularly we program. productivities And a comparison. very last last bucket quarter, achieved seeing. around $X have cost business, includes really savings the includes that year. cost there also of run savings of care full year, favorable strong year-over-year pet It we've a last savings yes, primarily performance. So, we're from the energy, that there

were cost some inventory still levels. significantly If you through think about higher QX, last working we

been heading in quarter. So the really favorability, energy freight, that played but margin embedded and into that's a role year-over-year the in the

in sequential from we QX have perspective. think didn't a you QX. on to huge change sequentially, an $X input a million energy it about costs Maybe If favorability basis,

that So, in by the performance. improvement mostly the Consumer mix the driven improved the that conversion variable margin pricing we saw and side, and productivity, sequential cost and & was volume Specialties

Michael Harrison

business. relatively was sales little That's sounds All wanted High-Temperature strong helpful. number the underlying the then, last on benefit of like right. But year-on-year. market bit new some wins dig though very of what question you're demand to guys in us I on down you're in even taking from actions trends, here a from It kind are and just And Technologies bit seeing maybe and of the customer product-related give that growth. seeing you terms more new a little detail drivers to the

Douglas Dietrich

flat. were line, Technologies sales High-Temperature Yes. I'll product start. the yes, Mike, in relatively

last and outages was volumes of demand truck, good markets, see and I outages the year, industrial, Major But and couple end going a extended. Asia, think, stable as some automotive, Erik last saw that volume that mentioned, we America in that through year forward. the relatively picked we in happen North maintenance didn't up quarter, over decline heavy see we that growth continuing. being were

So, line.Brett, going new sit for products, driving I that some that What's it, But year, good the do stable we trends looks feeling today. the good mentioned? unless feel We back of on? through macro of And a like kind markets. as of what's we're you future product right half to growth the about change. got now, it at take least want

Brett Argirakis

Yes.

Technologies, now. at the look North right at really, when was you look Refractories really, business, Both slowdowns business some as in really is stable, you -- For America, it, if There foundry America. the North foundry first, strong pretty business High-Temperature a Doug the take said.

maintenance spring which is that's That's Asia any outages. business We QX major The pretty the been but now. some We very they're than maybe yet. anticipate see little for is kind still Refractories about of higher it's doing stable. outages, -- okay. quarter a fairly flat, XX% drop-offs solid, been but steel normal side the was, bit utilization some has from rates don't first

But So it's a there be anything very still major. seeing soft. side, we're might the not dip. slight From European

In BOF planned acquired was It is these we the and customers. was driving with the we XX new saw our the in that's steelmaking move BOF integrated the those or in optimization EAF. saw one the Europe, States, as Europe, steel, laser There's electric really steel is from laser. are make U.K., This that have in United couple to -- is closing It this probably we're presentation, really we America, this to And -- Those steel and are starting it's furnace. were North to the ties a the ramping and approach automated automation MINSCAN -- you really in as do -- furnace. that positioned units transition to of well from ties soft. from arc of -- units. X that to in for about nonintegrated you transition. the so down going Eastern are And there units, can steel year. we we move plants, to industry in in But that seeing So permanently. one green of that

to with PLC low furnace. off You And it's the controls, molten spots steel. shop and importantly, employees applies the product automatically automated floor can it most the so away -- of it's pulling really, from

while developing we great been were work what this equipment, So did a a we and our that through was [ products. developing by parallel, accomplishment really ] in team has key technology, the is customers.So, high-grade the

normally that give refractory than did contracts technology example. and worn the portion that the now refractory steel, we is we molten much really of that into by we And This products portion -- the that refractory more is been upper I'll For developed what that away products that into electric furnace. currently banks bottoms has or go the normally, tied include that We deeper furnace. the in. furnace, Xx We've refractory. our in And now, of an more these the is instance, the utilizing. technology call you what gunning our that into of applying an the brick participated over haven't X-year call we Xx consumes are we

we the growth as market. that anticipate said, 'XX. a We business, and really XX this for having, So is is through units exciting

the But Turkey. I Europe into will from employees be mention, our this going to business. have we in fact, already we can have they're coming that week, even over do so further European next and units In we X visiting promote

We have steel in North change, Europe, further like units green even this technology drive plan this to in some did we but we with America.

Douglas Dietrich

help, that Mike? Does

Michael Harrison

Yes. detail there. Appreciate the

Operator

our with from take question will Silver David CL We next King.

David Silver

scratching hope scratch I I'm just So, couple questions. versus one to but my drivers is this price and I trying of head quarter. to first a my just have get confusing, head volume, get my the the I guess, -- around arms trying and I'm not too

did up say, a which So other units-wise other & versus decline pretty or H&PC, is the growing couple talk were in parts in of role, & a made get the you improved finer of price some played in were again, flat. a Personal maybe how which year-over-year, revenue of But flattish areas. there of the revenues on And units underlying Environmental price to pockets all much areas strength volume softness sense bigger volume some kind or for business kind were to about sold? profile a of Infrastructure where and basically Just volume revenue and ones or an on the back let's trying basis performance. to not maybe Home the Care, side? get really Or of are

Erik Aldag

This Sure. Erik. is Dave. Thanks,

the pointed And volume in lines, some the growth. is this early but High-Temperature quarter from those in then, customer product was yes, product We line maintenance conditions Technologies So, line, had projects all flat. relatively to other volume product saw relatively overall volume The the soft relatively year. decline we that Environmental in High-Temperature as Infrastructure construction the last larger flat. mentioned, & was and year, was perspective, The flat. outages foundry the we commercial we

flat net & that relatively by mainly So but Infrastructure the that's growth, seeing. driven what net, up Kind ended line. being product of volume that of all you're Environmental

David Silver

in packaging? how be legacy I'm for able but to copier could satellites as that then, came for satellites see of a type Additives grade brought particular, be the And box Specialty little press paper. pizza be have newer might assuming inroads the many X to check the going In kind that words, categorize I was online hoping is year. the opportunities. And I D.J. type new them. X the in white hoping side? releases, side, and making that characterize some an this of what you NewYield brown guess, to And discuss scheduled or Maybe onto paper would maybe are just X of paper Or to just wondering I about? online Is was of my you or year. bit that on if there new I'm PCC there the hone kind So to I the are coming overview I how box packaging. Okay. are of of some this other projects are just those of

D. J. Monagle

as and for best you. address try can those me let David, I

the look we contributed the box, That's new packaging to calcium is just at it a for that is in of from one, has ground on China. packaging some innovation and space. into where growth segment, white that brought carbonate First it opportunities already one

already that's those So in numbers.

which GCC to NewYield was it's earlier a and ones One a referred of Doug the combination. -- new

one. will and that packaging be some papers and printing papers, the that So, writing also in and in specialty grades

kind located in packaging.One So is to a can board. printing hoping the also who with standard those we are on the a of legacy X and but And someone tweaks just It came makes the is with it and some updates PCC, with writing customer. are that grow we of items is application that on it. PCC, currently,

was but in and packaging, PCC opportunity Brazil. the our PCC writing a placed in strategically standard And we is writing India, we're So, on opportunities a contract other other we that a growing that printing -- standard and and with that standard machine grades. small plant grades, then them.The customer a PCC was a was the in have NewYield relationship paper printing had makes

writing existing and they able pigment. retrofitting were advantage useful -- of and a into one grade an this waste into is that landfilling and convert customer the taking Now, being that of a satellite a particular stream to printing with and working

the provide technology our guess applies that I seeing crystal increased that. that is I that interest would additional engineering technologies, this NewYield color So in are we

interest the basically both space. operation. comes writing away that space and and are presents packaging printing the itself in throwing seeing We is pulping It customer increased as in the waste a from

packaging products. good share and is with so, what able And make or them we're paper do to savings

that for interest, were opportunistic circular David? economy. you that Does color provide given a the growing a an that's looking has the So technology growing for, need

David Silver

pie just And of, maybe it, nontraditional doing words, you white is just just that a dominate -- were legacy comprised brief NewYield, on percentage writing project the satellite and it, project projects? you were I'll not new what Yes. see then, of comment you brown other a as call And the new the if chart, funnel. that paper paper, would printing the papers -- opportunities, plant that packaging, the in satellite funnel,

D. J. Monagle

about. XX% XX/XX divide I So grades products printing are if and were There chatting amount But that I'm a to newer still some NewYield. into that up fair writing there's ones pull we packaging. with of versus the customers of for writing the some it grades, printing are and packaging paper, and like in probably other

products. I would it So products at the is -- pipeline, on probably to XX% newer XX% it's traditional say, XX% legacy you technology innovative want look to if a basis, and

Douglas Dietrich

big David, just change of ago, was I'll -- be it PCC. probably kind a say if you asked X that's change question where add, big before. legacy years a from us that traditional XX/XX, that'd would That's XX/XX I

deployment, technology if you -- that is So look -- even a technology XX/XX, but that big new moving XX/XX, the at toward the shift.

like meeting are and waste the NewYield, with packaging these of and products flow, sustainable high associated are said, customer these customer plants, that's NewYield returns, but combined meeting And so, new been -- part needs, new cost Legacy for great things. those and GCC, more and with business, strategy. D.J. PCC with as needs And technologies savings streams. we're cash with supplanting good

driving of we And that's so, portfolio the opportunity where and that's kind the what's XX/XX, our to driving opportunities see shift of growth.

David Silver

here great understanding higher been between X I'm level and the for the they have that opportunity, meet FLUORO-SORB level would on going has understand. tug-of-war water trillion then, some for limits -- drinking my to drinking been But PFAS to smaller it was setting finalizing per the That's more go guess, a Okay. one for a I a back parts for is water there to easier, plant covered the was on the when regulations maybe me. and bit And budget. I maybe that the a settled in content, color. operators EPA and the of detail,

tighter? say I I the how shrinks, other per X set the EPA In settled Just on some tolerances some stringent, think opportunity or potential cases. words, for limit would potentially you more toward say or grows shift X content alternatives either the tighter on that FLUORO-SORB you even goal FLUORO-SORB parts of thinking the how guess, they PFAS of but would But as trillion, the depending and also set? customers the is other become in the a the

Douglas Dietrich

I Yes, I a the get below X able this per difficult. kind parts detect should of trillion non-detect detectable X -- -- is think is -- lowest so is it's being of per very kind right, really the parts limit. trillion, to almost This

results the this FLUORO-SORB is we're say very able deliver trillion with the -- our will kind then to -- its per how get through It's of level. by X doing or -- So What way our the trials think it's non-detect. is basically it itself, I work FLUORO-SORB product, non-detect to parts able to on on our that borders is to that and to designed I through effective of be a own.

working confident all of new on [ that it and and right that municipal different There's FLUORO-SORB parts utilities. able There that be now. ] installation configurations we're to of water trillion. take physical X different. But plant -- down with So are a new to or water, capital. per different municipal through out We're remediation they're a would all this regulation

into groundwater equipment. play are of things into they may be I market retrofitting on applicable we well. that if whole that will and cleanup, very I product. We may conjunction used but in are media. wastewater are on, that So a that be it's set the existing think effective in There's ultimately, going limits we're a as think, with And lot other

to we've We with to it ensure after of to -- that to work a So, right meet working really got those of We again, work past like want good now, a to We this going to we needs. product. early the water But good But years test. to in want agencies. days, states. continue want want looks trialing, product. but continue we're with continue product to municipal couple is to

Operator

& Kyle We question [Operator will from next Company. our May Sidoti Instructions] take with

Kyle May

quick A round for ones me hopefully couple of to out. things

Looking at capital expenditures, quarters. quarter this last few they were compared to the lower

quarter run rate more we this new Just wondering was an of anomaly. as if or a this should lower about if think

Erik Aldag

is Kyle. Erik. This Yes. Thanks,

lower So, yes, a million timing million and expecting CapEx rate, expenditures -- $XX mostly $XXX of little the capital than was run function full a between of still the a timing. for year. mostly We're

you'll in ramp the coming So up bit that see a quarters.

Kyle May

the X that projects And large great. part you & remediation completed Environmental change noted was last Okay, were the year. then, Infrastructure of year-over-year in the segment, also

on your curious outlook there. you the Just if could us opportunity for give update an set

Douglas Dietrich

water were I some Yes. also Those product Gowanus bodies, big those providing last were projects large George, big year, sites. in the water we remediation Superfund ones, for Canal, remediation think, and that where Lake

projects. that. These in big participate ongoing will we projects so, are like And

next them. the phase likely as So, continue participate, to we're in comes to around, participate

revenue So quarter. outlook now, a hitting get lining Right the both systems. last but from when pretty a for bit -- The the just was big product first these it was you remediation, also were wastewater of year. X seasonal remediation lines. chunky we're Those weaker environmental period

We have solid pretty a outlook.

second growth this I going this in part, commercial to to I other normal product construction. kind of line think that rate that probably is and business.The we mentioned, back of as for the revert said we're third

least next projects over in there's of quarters. this seeing they seen increased at right the activity reiterating just think into increase But in I past into we undetermined. later is that, bit a terms haven't year activity turn little whether actual X X, some some inquiries, but now, we're

the is line caution, outlook for a given side -- the little bit our product got it, positive, X of or So we us. positive quarters but of of consumer the environmental the ahead relatively construction, for residential

Kyle May

just outlook FLUORO-SORB in now think actual upside into somewhat outlook? with baked the remind do if but then, opportunity. maybe EPA, great. Okay, how I And the place, lot X-year that's you've could And was regulations of maybe hoping talked kind much we've the includes about you to you of X-year potential one, a quickly us already I there's your what know last your

Douglas Dietrich

Yes.

So XXXX. a we out. revenue the ago year put was regulation in of -- I we X-year when think we had That -- at a $XX million $XX to outlook the put before in million was

probably we're the think be I of end still in that high on range. could range, that

there be might think upside. I

I have by going think, you -- tested X municipal to years in place, water more to are XXXX, that. give Kyle, customers I'll after what is, something

looking XXXX. So we're at out

go It'll I think up. ramp slower, it'll it will start ramp then up. to

we time some be of I the But Day right our year. that work I give work period that in get going that's So last I Investor But as now, kind If in plan, of our with year that. our looked stick think we're I you we through think gave at could think updates faster this we to these over and and what to, it range upside. you than the some trials think we'll trials these X-year goes and EPA accelerates, bigger is there opportunity at.

Operator

next our from with Silver King. CL take will We David question

David Silver

of points business in able call, just kind relationship I overall just authorities. with to lot touched or be Chinese one things, helpful. two industrial a maybe step of would you and hoping on comment I businesses recovery vectors, as I broader forth it of was if China but be bunch whatever. in us very how then, back -- a was to your but Doug, might to the from for I just your perspective. overall this relates back just just And us on give wondering at had you secondly, on maybe a activity the a judge different rebound have Chinese There's or to your Maybe economic distance. during of view various a the guess, follow-up. the or take Hard

Douglas Dietrich

customers Yes. in regions, We've and business an partnership good our is large we've operations, gotten of stewards some of have our plant XX, the start employers Mongolia. there kind in with from in a and been in been ventures. relationships up China. environmental mills. mining long time; doing we've business I'll -- Inner first A awarded good in These to David, paper we with recently standpoint, awards lot in the our China. done question. we've close XX are participated our of large We're -- and years recognition in joint

approach else relationships do communities, we flows et environmentally I the I good stewards what local we through think anywhere world, we think of being so, governments, we cetera. conscious. like in the there, China that And approach into have with customers, the And

up, last quarter standing business, was through we're the is India having demand, long-standing we the now sand penetrate from to the shutdowns our continue pretty in relationship room that China opportunities and are a of ramping that, continue and working green that challenging as least first stable but of lot us right And ago, COVID but business quarter. strong. relationships coming seeing penetrate I business, least What into bonds to stable. Last through of foundry both time new into industrial side also to saw the conditions helps for a think in year into Asia. also in our year, But partnership, in terms and through a that So long a There's the it at like through the -- our market. was at a seems coming us general of -- some our we in first through -- a country. in

So what's growth. we that's progress the lot will continue to a there. And feeding of

and scrap seeing not so, throughout in the into market castings large industrial our that's it's going continual industrial housings stable, movement doing from sales with blending a help in of new but steady to general, still we systems participating particular, that -- refrigeration, kind side, And big we our putting it's growth really with saw we We're go in and with a work pretty and quarter. now lot now. money. we're first in mentioned the Erik booming, pretty the to strong growth.So We're We're quarters, of on standpoint, China go general seeing but in of rates. this that. customers save improvement. right We're saw to Asia well can and the we're see a into also steady compressor that volume growth and growth portion right that in do working with and

good, D.J. are of it X right got So ramping but into the And we've mentioned, won't which we satellites, we've got now. for a in up go again, as X stable outlook China really region.

and And paper ahead good side. of growth some we've us got on packaging so, the

make and it stable, in you through want growth look feel right for sure to the China like It a got look So it general. but the to answer, of Asia how looks pretty stable now, looks I terrible Long doesn't we for and ahead us. us at rest year.

Operator

any At I'd Mr. call remarks. any questions. like this time, have we further to turn Dietrich not to back for the closing do

Douglas Dietrich

to joining months. Appreciate Thank you, X Hope you talking another Marie. everyone forward good look have to a you care. we today. Take weekend, and in

Operator

This concludes today's for you your call. participation. Thank

now You may disconnect.

Minerals (MTX) 26 Apr 242024 Q1 Earnings call transcript