Minerals Technologies Inc. updates on BMI OldCo's Chapter 11 case, announces Q1 2025 financial results, and initiates cost-saving measures.
Quiver AI Summary
Minerals Technologies Inc. (MTI) provided an update regarding its subsidiaries' Chapter 11 case, announcing the establishment of a $215 million reserve to address talc-related claims and related litigation costs for BMI OldCo. The U.S. Bankruptcy Court has approved additional debtor-in-possession financing, and MTI continues to support the resolution efforts for these claims. MTI also reported preliminary first-quarter 2025 financial results, with sales of $492 million and operating income of $63 million, slightly below expectations due to prolonged low demand. The company has initiated a cost savings program to reduce expenses by approximately $10 million annually and recorded a restructuring charge of $5.5 million. MTI is optimistic about improved sales in coming months and will provide more information during its upcomingearnings callon April 25, 2025.
Potential Positives
- Establishment of a $215 million reserve to address talc-related claims demonstrates the company’s proactive approach to managing legal liabilities and reinforcing financial stability.
- Preliminary financial results show resilience, with a positive sales trajectory in March indicating a potential strong recovery in the second quarter of 2025.
- Initiation of a cost savings program that is expected to yield approximately $10 million annually highlights the company's commitment to operational efficiency and adaptability in changing market conditions.
Potential Negatives
- Record of a $215 million provision to establish a reserve for talc-related claims indicates significant financial liabilities and ongoing legal challenges for the company.
- Preliminary first quarter sales fell short of the company's guidance by $8 million, reflecting weaker demand and economic uncertainty.
- Initiation of a cost savings program involving workforce reductions raises concerns about the company's operational stability and employee morale.
FAQ
What is the recent update on BMI OldCo's Chapter 11 case?
Minerals Technologies Inc. established a $215 million reserve for resolving current and future talc-related claims in BMI OldCo’s Chapter 11 case.
When will MTI discuss its first quarter 2025 financial results?
MTI will host a conference call on April 25, 2025, at 11 a.m. ET to discuss first quarter 2025 results.
What were MTI's preliminary financial results for Q1 2025?
MTI expects first quarter sales of $492 million and operating income of $63 million, below initial guidance due to lower demand.
What cost savings program has MTI initiated?
MTI has launched a cost savings program expected to save approximately $10 million annually, mainly through workforce reductions.
How can investors access theearnings callwebcast?
Investors can access the webcast and presentation materials on MTI’s Investor Relations page or pre-register using the provided link.
Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.
$MTX Hedge Fund Activity
We have seen 116 institutional investors add shares of $MTX stock to their portfolio, and 129 decrease their positions in their most recent quarter.
Here are some of the largest recent moves:
- FMR LLC added 527,206 shares (+42.7%) to their portfolio in Q4 2024, for an estimated $40,178,369
- WELLINGTON MANAGEMENT GROUP LLP removed 245,317 shares (-100.0%) from their portfolio in Q4 2024, for an estimated $18,695,608
- AMERICAN CENTURY COMPANIES INC added 204,371 shares (+31.1%) to their portfolio in Q4 2024, for an estimated $15,575,113
- MORGAN STANLEY removed 161,511 shares (-32.3%) from their portfolio in Q4 2024, for an estimated $12,308,753
- VICTORY CAPITAL MANAGEMENT INC removed 160,297 shares (-15.7%) from their portfolio in Q4 2024, for an estimated $12,216,234
- NUVEEN ASSET MANAGEMENT, LLC removed 119,761 shares (-18.5%) from their portfolio in Q4 2024, for an estimated $9,126,985
- FOUNDRY PARTNERS, LLC added 101,492 shares (+inf%) to their portfolio in Q4 2024, for an estimated $7,734,705
To track hedge funds' stock portfolios, check out Quiver Quantitative's institutional holdings dashboard.
$MTX Price Targets
Multiple analysts have issued price targets for $MTX recently. We have seen 2 analysts offer price targets for $MTX in the last 6 months, with a median target of $92.0.
Here are some recent targets:
- Peter Osterland from Truist Financial set a target price of $92.0 on 04/14/2025
- An analyst from Seaport Global set a target price of $92.0 on 03/05/2025
Full Release
--- Establishes Reserve for BMI OldCo Chapter 11 Case ---
--- Announces Preliminary First Quarter 2025 Financial Results ---
--- Initiates Cost Savings Program and Records Restructuring Charge ---
NEW YORK, April 17, 2025 (GLOBE NEWSWIRE) -- Minerals Technologies Inc. (NYSE: MTX) (“MTI” or “the Company”) today provided an update on the Chapter 11 case of its subsidiaries BMI OldCo (formerly Barretts Minerals Inc.) and Barretts Ventures Texas LLC (together, “BMI OldCo” or “the Debtors”). The Company also announced preliminary first quarter 2025 financial results, the initiation of a cost savings program, and a restructuring charge.
Update on BMI OldCo’s Chapter 11 Case
MTI recorded a provision to establish a reserve of $215 million for estimated costs to fund a trust to resolve all current and future talc-related claims as well as fund BMI OldCo’s Chapter 11 case and related litigation costs. The parties have not yet reached a final resolution of all matters in the Chapter 11 case.
The provision includes $30 million of additional debtor-in-possession financing by Minerals Technologies Investments LLC (a wholly-owned subsidiary of MTI) to the Debtors, which was approved by the United States Bankruptcy Court for the Southern District of Texas on April 14, 2025.
MTI continues to support BMI OldCo’s efforts to fully and finally resolve all current and future talc-related claims through court approval of a plan of reorganization in the Chapter 11 case, which would establish a trust to which all talc-related claims would be channeled for resolution.
“We remain confident in BMI OldCo’s path to resolving these liabilities certainly and fairly through the Chapter 11 process, and believe this reserve is appropriate to cover the anticipated financial impact of talc-related claims,” said Douglas T. Dietrich, Chairman and Chief Executive Officer. “We continue to believe the lawsuits against BMI OldCo are meritless and that all talc sold by BMI OldCo is and always has been safe.”
No other subsidiaries or business units of MTI are included in the Chapter 11 filing. Additional information about the case can be found at https://cases.stretto.com/BMI.
Preliminary First Quarter 2025 Financial Results and Cost Savings Program
MTI expects first quarter sales of $492 million and operating income of $63 million (excluding the special charges related to BMI OldCo and restructuring), compared with the Company’s guidance of $500 million in sales and $70 million in operating income.
The slower demand conditions the Company experienced in January extended longer than expected, impacting volumes throughout the quarter. Customers reduced demand and shifted their order patterns as they adjusted inventory levels amid economic uncertainty. MTI took proactive measures to address the higher operating costs that resulted from the lower volumes. Sales improved significantly in March to a run rate above the initial quarter guidance and this rate has continued in April. While there is still ongoing economic uncertainty, MTI is on track to deliver a much stronger second quarter.
In addition, the Company identified further efficiency cost savings of approximately $10 million on an annualized basis, primarily through workforce reductions, and recorded a charge of $5.5 million for severance and other related costs associated with this program. The cost savings program was initiated in the first quarter of 2025, and the Company expects to achieve full run rate savings by early 2026.
MTI will discuss further details on the outlook on its upcomingearnings callon April 25, 2025.
“Starting out the year, we saw significant changes to order patterns from customers in both of our business segments. However, we saw an improvement in sales in March, which we expect to continue through the second quarter,” said Douglas T. Dietrich, Chairman and Chief Executive Officer. “We adapted quickly to changing market conditions and to ensure MTI is well positioned to meet our financial targets and growth initiatives going forward.”
First Quarter 2025 Earnings Call
MTI will host a conference call on Friday, April 25, 2025, at 11 a.m. ET to discuss its first quarter 2025 results. Investors and other interested parties can access the webcast and presentation materials on MTI’s Investor Relations
page
and pre-register for the webcast at any time using
this
link.
For U.S.-based participants, the dial-in phone number for the conference call is +1 877-270-2148 and the conference ID is Minerals Technologies. For participants based outside the U.S., the dial-in number is +1 412-902-6510.
A replay of the call will be available from 2 p.m. ET, April 25, 2025, through 2 p.m. ET, September 25, 2025. Please click
here
to listen to the replay.
About Minerals Technologies Inc.
New York-based Minerals Technologies Inc. is a leading, technology-driven specialty minerals company that develops, produces, and markets a broad range of mineral and mineral-based products, related systems, and services. MTI serves globally a wide range of consumer and industrial markets, including household, food and pharmaceutical, paper, packaging, automotive, construction, and environmental. The Company reported global sales of $2.1 billion in 2024. For further information, please visit our website at www.mineralstech.com.
Investor Relations Contact
Lydia Kopylova
lydia.kopylova@mineralstech.com
Media Contact
Stephanie Heise
stephanie.heise@mineralstech.com
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