Apr. 17 at 11:39 PM
$MTX Minerals Technologies lowers Q1 revenue view to
$492M from
$500M
Consensus is for Q1
$498.68M. Lowers Q1 operating income
$63M, excluding the special charges related to BMI OldCo and restructuring, from
$70M. 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
$10M on an annualized basis, primarily through workforce reductions, and recorded a charge of
$5.5M for severance and other related costs associated with this program. The cost savings program was initiated in the Q1, and the Company expects to achieve full run rate savings by early 2026.
