AMCOL International Reports First Quarter Earnings
AMCOL International (NYSE: ACO) Reports First Quarter Earnings Friday April 18, 6:30 am ET
ARLINGTON HEIGHTS, Ill., April 18 /PRNewswire-FirstCall/ -- AMCOL International Corporation (NYSE: ACO - News) today reported 2008 first-quarter net income of $8.6 million or $0.28 per diluted share, compared with $10.8 million or $0.35 per diluted share in the same prior-year period.
Net sales rose 16.9% to $191.4 million for the quarter ended March 31, 2008, compared with $163.7 million for the 2007 period. Acquisitions and favorable foreign currency translation represented approximately $5.9 million and $4.3 million, respectively, of the first-quarter sales growth. Operating profit declined by 13.5% over the 2007 period to $12.7 million. Acquisitions added less than $0.1 million to current-period operating profit while foreign currency translation contributed $0.5 million.
This release should be read in conjunction with the attached unaudited condensed consolidated financial statements. Further discussion of items and events impacting earnings are included in the Statement of Operations Highlights.
"Sales were up across all segments in the first quarter, and Oilfield Services had operating profit growth of 24.7%," says Larry Washow, AMCOL President and Chief Executive Officer. "At the same time, however, we experienced a number of issues that dampened our overall performance. Increased energy costs were a significant factor this quarter. Overhead was up due to costs from acquisitions, greater R&D expenditures and higher benefits cost."
"Despite solid sales growth of 15.8% in the Minerals segment, quarter-over-quarter operating profits were down 17.0% from a year ago, primarily because of higher energy costs. Operating margins were flat compared to the fourth quarter of 2007, but we expect to see improvement in margins in the quarters ahead," Washow continues.
"Sales in the Environmental segment were up 19.6% quarter-over-quarter but operating profit decreased slightly by 4.4%," he says. "Weather, energy costs, overhead and product mix all played a role, but, again, our expectations for the balance of the year are positive.
In summary, Washow says, "We're seeing the effects of a number of economic influences, but we are continuing to identify opportunities to improve costs. Given the strength of the energy sector, we expect continued strong performance in Oilfield Services, and the outlook is promising for other segments over the rest of the year, as well."