Minerals Technologies Inc. Provides Updates on Subsidiary’s Chapter 11 Case and First Quarter 2025 Results
Minerals Technologies (NYSE: MTX) has announced key updates regarding its subsidiary's Chapter 11 case and Q1 2025 preliminary results. The company has established a $215 million reserve to resolve talc-related claims for BMI OldCo, including $30 million in debtor-in-possession financing.
For Q1 2025, MTX reports preliminary sales of $492 million and operating income of $63 million, falling short of their guidance of $500 million in sales and $70 million in operating income. The company attributes this underperformance to extended slower demand conditions and customer inventory adjustments.
In response, MTX has initiated a cost savings program targeting $10 million in annual efficiency savings, primarily through workforce reductions, recording a $5.5 million charge for severance costs. The company expects to achieve full run rate savings by early 2026 and reports improved sales momentum in March 2025, continuing into April.
Minerals Technologies (NYSE: MTX) ha annunciato aggiornamenti importanti riguardo al caso Chapter 11 della sua controllata e ai risultati preliminari del primo trimestre 2025. L'azienda ha costituito una riserva di 215 milioni di dollari per risolvere le richieste legate al talco per BMI OldCo, inclusi 30 milioni di dollari di finanziamento debtor-in-possession.
Per il primo trimestre 2025, MTX riporta vendite preliminari per 492 milioni di dollari e un reddito operativo di 63 milioni di dollari, risultati inferiori alle previsioni di 500 milioni di dollari nelle vendite e 70 milioni di dollari nel reddito operativo. L’azienda attribuisce questa performance inferiore a condizioni di domanda più lente del previsto e agli aggiustamenti dell’inventario da parte dei clienti.
In risposta, MTX ha avviato un programma di riduzione dei costi con l’obiettivo di risparmiare 10 milioni di dollari all’anno, principalmente tramite riduzioni del personale, registrando un costo di 5,5 milioni di dollari per oneri di licenziamento. L’azienda prevede di raggiungere il pieno risparmio operativo entro l’inizio del 2026 e segnala un miglioramento della dinamica delle vendite a marzo 2025, che prosegue anche in aprile.
Minerals Technologies (NYSE: MTX) ha anunciado actualizaciones clave sobre el caso del capítulo 11 de su subsidiaria y los resultados preliminares del primer trimestre de 2025. La compañía ha establecido una reserva de 215 millones de dólares para resolver reclamaciones relacionadas con talco para BMI OldCo, incluyendo 30 millones de dólares en financiamiento debtor-in-possession.
Para el primer trimestre de 2025, MTX reporta ventas preliminares de 492 millones de dólares y un ingreso operativo de 63 millones de dólares, por debajo de su guía de 500 millones en ventas y 70 millones en ingreso operativo. La empresa atribuye este desempeño inferior a condiciones de demanda más lentas de lo esperado y ajustes en el inventario de los clientes.
En respuesta, MTX ha iniciado un programa de ahorro de costos con un objetivo de 10 millones de dólares en ahorros anuales de eficiencia, principalmente a través de reducciones de personal, registrando un cargo de 5,5 millones de dólares por costos de indemnización. La compañía espera lograr el ahorro total para principios de 2026 y reporta un impulso mejorado en las ventas en marzo de 2025, que continúa en abril.
Minerals Technologies (NYSE: MTX)는 자회사 챕터 11 사건과 2025년 1분기 예비 실적에 관한 주요 업데이트를 발표했습니다. 회사는 BMI OldCo의 활석 관련 청구 해결을 위해 2억 1,500만 달러의 준비금을 설정했으며, 이 중 3,000만 달러는 채무자 소유 자금(debtor-in-possession)입니다.
2025년 1분기 MTX는 4억 9,200만 달러의 예비 매출과 6,300만 달러의 영업이익을 보고했으며, 이는 매출 5억 달러와 영업이익 7,000만 달러라는 가이던스를 밑도는 수치입니다. 회사는 이 부진을 수요 둔화 지속과 고객 재고 조정 때문이라고 설명했습니다.
이에 대응해 MTX는 연간 1,000만 달러의 비용 절감을 목표로 하는 비용 절감 프로그램을 시작했으며, 주로 인력 감축을 통해 진행되고 있습니다. 퇴직 비용으로 550만 달러의 비용을 기록했습니다. 회사는 2026년 초까지 완전한 비용 절감 효과를 달성할 것으로 기대하며, 2025년 3월부터 4월까지 판매 모멘텀이 개선되고 있다고 보고했습니다.
Minerals Technologies (NYSE : MTX) a annoncé des mises à jour clés concernant le dossier Chapter 11 de sa filiale ainsi que les résultats préliminaires du premier trimestre 2025. La société a constitué une réserve de 215 millions de dollars pour régler les réclamations liées au talc pour BMI OldCo, incluant un financement debtor-in-possession de 30 millions de dollars.
Pour le premier trimestre 2025, MTX rapporte des ventes préliminaires de 492 millions de dollars et un résultat opérationnel de 63 millions de dollars, en dessous de ses prévisions de 500 millions de dollars de ventes et 70 millions de dollars de résultat opérationnel. L’entreprise attribue cette sous-performance à une demande plus faible prolongée et à des ajustements des stocks clients.
En réponse, MTX a lancé un programme d’économies visant 10 millions de dollars d’économies annuelles, principalement par des réductions d’effectifs, enregistrant une charge de 5,5 millions de dollars liée aux indemnités de départ. La société prévoit d’atteindre le plein effet des économies début 2026 et rapporte une amélioration de la dynamique des ventes en mars 2025, qui se poursuit en avril.
Minerals Technologies (NYSE: MTX) hat wichtige Neuigkeiten zum Chapter-11-Verfahren seiner Tochtergesellschaft und vorläufigen Ergebnissen für das erste Quartal 2025 bekanntgegeben. Das Unternehmen hat eine Rückstellung von 215 Millionen US-Dollar gebildet, um talcbezogene Forderungen für BMI OldCo zu begleichen, darunter 30 Millionen US-Dollar an Debtor-in-Possession-Finanzierung.
Für das erste Quartal 2025 meldet MTX vorläufige Umsätze von 492 Millionen US-Dollar und ein Betriebsergebnis von 63 Millionen US-Dollar, was unter der Prognose von 500 Millionen US-Dollar Umsatz und 70 Millionen US-Dollar Betriebsergebnis liegt. Das Unternehmen führt die unterdurchschnittliche Leistung auf anhaltend schwache Nachfrage und Anpassungen bei den Kundenbeständen zurück.
Als Reaktion darauf hat MTX ein Kostensparprogramm gestartet, das auf 10 Millionen US-Dollar jährliche Effizienzgewinne abzielt, hauptsächlich durch Personalabbau, und verbucht 5,5 Millionen US-Dollar an Abfindungskosten. Das Unternehmen erwartet, die vollen Einsparungen bis Anfang 2026 zu erreichen und berichtet von einer verbesserten Umsatzdynamik im März 2025, die sich im April fortsetzt.
- Sales improved significantly in March 2025, continuing into April
- Implementation of $10M annual cost savings program
- Company expects stronger Q2 2025 performance
- Q1 2025 sales missed guidance ($492M vs $500M)
- Q1 2025 operating income missed guidance ($63M vs $70M)
- $215M reserve established for talc-related claims
- $5.5M restructuring charge for workforce reductions
Insights
MTI faces significant financial pressure with $215M talc litigation reserve and missed Q1 targets, though cost-cutting and March sales improvement offer offset.
The establishment of a
MTI's Q1 performance fell notably short of guidance, with reported sales of
The newly announced cost savings program, targeting
Most concerning is the combination of these financial challenges occurring simultaneously - establishing a significant litigation reserve while also experiencing demand softness requiring cost-cutting measures. This constellation of issues suggests MTI faces a challenging near-term outlook despite management's optimistic commentary about March sales improvements.
MTI's $215M talc litigation reserve signals progress toward resolution but represents significant financial commitment with uncertain timeline for final settlement.
The establishment of a
The
MTI's strategy clearly focuses on establishing a trust that would provide a channeling injunction for all current and future talc-related claims. This approach, similar to other mass tort bankruptcy resolutions, aims to provide MTI with finality and certainty regarding these liabilities. While management maintains the claims are "meritless," their willingness to establish this substantial reserve indicates a pragmatic approach to achieving legal closure regardless of the underlying merits.
Importantly, the Chapter 11 filing remains to BMI OldCo and Barretts Ventures Texas , with no other MTI subsidiaries involved. This structural isolation helps contain the financial and operational impact of the bankruptcy proceedings, protecting the company's broader operations from direct legal exposure to the talc litigation.
--- 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
The provision includes
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
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
MTI will discuss further details on the outlook on its upcoming earnings call on 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
Investor Relations Contact
Lydia Kopylova
lydia.kopylova@mineralstech.com
Media Contact
Stephanie Heise
stephanie.heise@mineralstech.com
FAQ
What is the size of MTX's reserve for talc-related claims in the BMI OldCo Chapter 11 case?
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