- Minerals Technologies Inc. (MTX, Financial) reported a Q1 2025 loss of $4.51 per share due to a $215 million reserve for its subsidiary's Chapter 11 case.
- Excluding special items, earnings per share stood at $1.14.
- Net sales declined 8% to $492 million, with an unfavorable foreign exchange impact of 2%.
Minerals Technologies Inc. (MTX) faced a challenging start to 2025, reporting a net loss of $4.51 per share in the first quarter. This loss is attributed to a $215 million reserve established for talc-related claims associated with its subsidiary, BMI OldCo's Chapter 11 bankruptcy case. If special items are excluded, the earnings per share were $1.14, highlighting the impact of these one-time charges on the company's financial results.
The company's overall net sales fell by 8% to $492 million compared to the previous year. Additionally, foreign exchange rates negatively impacted sales by 2%. The Consumer & Specialties segment reported a 10% drop in sales to $268 million, while the Engineered Solutions segment saw a 6% decline to $224 million. This weakened demand across segments was primarily due to customer destocking and inconsistent order patterns early in the quarter.
In response, MTX has launched a $10 million cost savings program that aims to streamline operations primarily through workforce reductions. The program incurred a $5.5 million charge related to severance costs. The anticipated full run-rate savings are expected by early 2026.
Despite the challenging market conditions in January and February, MTX observed a significant improvement in sales in March, with management optimistic about this positive trend continuing into the second quarter of 2025. The strategic decisions to address legal liabilities and mitigate operational challenges reflect the company's proactive approach to securing long-term financial stability.
