Amcol 3Q results soar after year-earlier charge

Amcol reports higher 3rd-quarter profit as 2008 results were hurt by investment

• On 12:05 pm EDT, Friday October 23, 2009

HOFFMAN ESTATES, Ill. (AP) -- Specialty mineral producer Amcol International Corp. said Friday its third-quarter earnings rose sharply from a year earlier, when a charge related to an investment undermined results.

Net income jumped to $13.3 million, or 43 cents per share, for the three months ended Sept. 30. That compares with $1.9 million, or 6 cents per share, in the year-earlier period.

Earnings in the third quarter of 2008 included a charge of $16.7 million, or 54 cents per share, related to Amcol's investment in an affiliate. Excluding that amount, earnings would have been 60 cents per share.

The latest quarterly results include a charge of $1.6 million, or 5 cents per share, related to the write-off of certain U.S. metal casting operations. Without that expense, earnings would have been 48 cents per share.

Sales fell nearly 25 percent to $190.9 million from $253 million a year earlier.

Analysts surveyed by Thomson Reuters, who typically exclude one-time items, expected a profit of 29 cents per share on revenue of $186.05 million.

Larry Washow, Amcol's president and chief executive, said that while quarterly revenue was well below the year-earlier amount, "there are some positive developments."

"Gross margins continue to improve across all segments," he said in a statement. "We continue to reduce debt as our focus on the balance sheet is producing results."

U.S. sales for the company's minerals segment improved over the previous quarter as the government's Cash for Clunkers program boosted foundry activity, Washow said. That business is improving in Asia and Europe, he added.

Margins improved for Amcol's environmental business, though the building materials market remains "very soft" around the world, he said.

Results for the company's oilfield services business reflect lower oil and natural gas prices and compare with record results a year earlier, Washow said. "Project activity is slow and predicting a return to growth is very difficult," he said.

Overall, "we expect continuing improvement" in the fourth quarter, he said.

Amcol shares rose $4.29, or 16.9 percent, to $29.70 in midday trading.

Buzz up!