Minerals Technologies Inc. (NYSE:MTX) Q3 2023 Earnings Call Transcript

Alex Hantman: Perfect, very helpful. Thank you. And last question for me. Just to round it out. We’ve discussed the growing mix of industrial and consumer technologies for everyday life. Can you talk about how you evaluate the existing product portfolio and any opportunities you might see for pruning?

Doug Dietrich: Well, I think in our — we’ve been building in the consumer business. And so I don’t see, I think there’s continued investment in broadening that portfolio or at least strengthen in that portfolio of product lines. We see a lot of growth potential, and a number of them like in our filtration business, which goes into edible oil purification and biodiesel and animal health, personal care, pet care. So those I think we’re going to continue to build. There are other areas that we’ll look at that if they don’t have the growth potential, or if we don’t see that the contribution or the capital allocation to those we would consider pruning. So, we do go through the process of looking at our portfolio and making sure that we’re steering that capital to the ones that are going to yield the highest value, and highest growth and highest profits. And we will consider taking steps for those that don’t.

Alex Hantman: Appreciate it. Thank you, very much.

Operator: [Operator Instructions]. We’ll take our next question from David Silver with C.L. King. Please go ahead.

David Silver: Yeah, hi, good morning. Thank you. I think my first question, so I’ll ask a few questions, and they’re all going to be somewhat related to the idea that revenues were a smidgen, year-over-year, but the operating income and the margins had improved, disproportionately. Firstly, I’d like to ask you about as maybe if you could highlight the trends in Asia, in your Asian activities in particular. So, I guess foundry and TCC amongst them. But is it fair to say that those businesses are still trending, let’s say, below year earlier levels, but they probably improved sequentially through this year? And then if that is the case, I mean, how close would you say they are to, let’s say, being fully recovered in your mind?

Doug Dietrich: But there was your question, specifically around Asia, across the board? Or is it just kind of a question on mix of ups and downs? Just want to make sure I answer it correct.

David Silver: Yeah, it’s, I’m sorry, it wasn’t — I wasn’t very precise. But I’m thinking about trends in China. And then the balance of Asia, I guess, including India, outside of China, but your longer-term growth programs there have been somewhat disturbed, I guess, or moved to have — the environment has changed over the last couple of years. But just thinking about how the trend has been sequentially? And how close are you back to let’s say, where you were, a year or two ago?

Doug Dietrich: So let me, I’m going to set this up, and then I’ll probably give it to Brett and D.J. to talk about their specific businesses in the market and China. Where the market is today is different from where we are, right. So the market, I think, in general, and two different markets, or major markets in China, with the paper packaging and our foundry market. We are a different place than where that market may be. And I think the market is probably back to where it was pre-COVID levels or somewhere in there. But we’re well ahead of that in many of them. And that’s due in both of those businesses. And that’s due to the penetration that we see as we’ve been driving through the market. So, even though the demand levels may be back to pre-COVID levels or a little bit further.

We’ve continued to grow, we’ve continued to grow with our products, we’ve continued to grow into packaging, we’ve been continuing to grow in our blended products business. So, we’re doing well. And even if the market isn’t, hasn’t grown at its normal rates over the past two to three years. So, let me start with D.J., maybe get some color on paper and packaging and where we are in China and India versus the market.