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Press Release: Minerals Technologies Reports -2-

· 02/04/2021 17:01
CONDENSED CONSOLIDATED STATEMENTS OF INCOME MINERALS TECHNOLOGIES INC. AND SUBSIDIARY COMPANIES (in millions, except per share data) (unaudited) Quarter Ended % Growth Twelve Months Ended % Growth ------------------------ ---------------- -------------------- ---------- Dec. Sep. Dec. 31, 27, 31, Dec. 31, Dec. 31, Prior Prior 2020 2020 2019 Qtr. Year 2020 2019 Prior Year ------ ------ ------ ------- ------- -------- -------- ---------- Net sales Product sales $415.0 $375.0 $416.6 11% (0)% $1,521.8 $1,695.8 (10)% Service revenue 16.8 13.3 23.6 26% (29)% 73.0 95.2 (23)% ----- ----- ----- --- --- ------- ------- ----- Total net sales 431.8 388.3 440.2 11% (2)% 1,594.8 1,791.0 (11)% Cost of sales Cost of goods sold 308.9 280.9 317.3 10% (3)% 1,140.5 1,285.8 (11)% Cost of service revenue 11.6 9.0 15.2 29% (24)% 48.9 64.6 (24)% ----- ----- ----- --- --- ------- ------- ----- Total cost of sales 320.5 289.9 332.5 11% (4)% 1,189.4 1,350.4 (12)% Production margin 111.3 98.4 107.7 13% 3% 405.4 440.6 (8)% Marketing and administrative expenses 49.3 42.1 49.3 17% 0% 176.5 187.5 (6)% Research and development expenses 4.9 4.8 5.4 2% (9)% 19.9 20.3 (2)% Litigation expenses 0.0 1.5 5.3 * * 10.4 10.9 (5)% Acquisition-related expenses 2.6 0.0 0.0 * * 3.1 0.0 * Restructuring and other items, net 0.0 1.5 0.0 * * 7.6 13.2 (42)% ----- ----- ----- ------- ------- ------- ------- ----- Income from operations 54.5 48.5 47.7 12% 14% 187.9 208.7 (10)% Interest expense, net (10.7) (10.1) (9.9) 6% 8% (38.2) (43.2) (12)% Non-cash pension settlement charge (1.0) (1.1) 0.0 (9)% * (6.4) 0.0 * Other non-operating deductions, net (4.2) (1.5) (2.8) * 50% (5.3) (8.2) (35)% ----- ----- ----- ------- --- ------- ------- ----- Total non-operating deductions, net (15.9) (12.7) (12.7) 25% 25% (49.9) (51.4) (3)% Income before tax and equity in earnings 38.6 35.8 35.0 8% 10% 138.0 157.3 (12)% Provision for taxes on income 6.8 7.0 5.8 (3)% 17% 24.4 22.8 7% Equity in earnings of affiliates, net of tax 0.2 0.5 0.4 (60)% (50)% 2.2 1.9 16% ----- ----- ----- --- --- ------- ------- ----- Consolidated net income 32.0 29.3 29.6 9% 8% 115.8 136.4 (15)% Less: Net income attributable to non-controlling interests 0.9 1.0 0.6 (10)% 50% 3.4 3.7 (8)% ----- ----- ----- --- --- ------- ------- ----- Net Income attributable to Minerals Technologies Inc. $ 31.1 $ 28.3 $ 29.0 10% 7% $ 112.4 $ 132.7 (15)% ----- ----- ----- --- --- ------- ------- ----- Weighted average number of common shares outstanding: Basic 34.1 34.1 34.8 34.2 35.0 Diluted 34.1 34.1 34.9 34.2 35.1 Earnings per share attributable to Minerals Technologies Inc.: Basic $ 0.91 $ 0.83 $ 0.83 10% 10% $ 3.29 $ 3.79 (13)% ----- ----- ----- ------- ------- Diluted $ 0.91 $ 0.83 $ 0.83 10% 10% $ 3.29 $ 3.78 (13)% ----- ----- ----- ------- ------- Cash dividends declared per common share $ 0.05 $ 0.05 $ 0.05 $ 0.20 $ 0.20 ----- ----- ----- ------- ------- * Percentage not meaningful

Sales in the Service businesses, which include the Refractories and Energy Services segments, were $331.1 million, 16 percent below the prior year. Operating income for the Service businesses was $40.7 million and represented 12.3 percent of sales.

Refractories segment sales were $258.1 million, 13 percent lower than the prior year as steel mill utilization rates declined in the second quarter in North America and Europe followed by gradual improvement in the second half of the year.

Segment operating income was $35.5 million and represented 13.8 percent of sales.

Energy Services segment sales were $73.0 million, 23 percent lower than the prior year. Segment operating income was $5.2 million.

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Minerals Technologies will host a conference call tomorrow, February 5, 2021 at 11 a.m. Eastern Time. The conference call will be broadcast live on our website: www.mineralstech.com. To listen to the call, go to the website and click on "Investor Relations," then click on "Quarterly Results & Conference Calls." A presentation for the call will be available at the same location at approximately 10:30 a.m. Eastern Time on February 5, 2021.

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FORWARD-LOOKING STATEMENTS

This press release may contain "forward--looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements provide current expectations and forecasts of future events such as new products, revenues and financial performance, and are not limited to describing historical or current facts. They can be identified by the use of words such as "believes," "expects," "plans, " "intends," "anticipates," and other words and phrases of similar meaning. Forward-looking statements are necessarily based on assumptions, estimates and limited information available at the time they are made. A broad variety of risks and uncertainties, both known and unknown, as well as the inaccuracy of assumptions and estimates, can affect the realization of the expectations or forecasts in these statements. Actual future results may vary materially. Significant factors that could affect the expectations and forecasts include the duration and scope of the COVID-19 pandemic, and government and other third-party responses to it; worldwide general economic, business, and industry conditions, including the effects of the COVID-19 pandemic on the global economy; the cyclicality of our customers' businesses and their changing demands; the dependence of certain of our product lines on the commercial construction and infrastructure markets, the domestic building and construction markets, and the automotive market; our ability to effectively achieve and implement our growth initiatives; our ability to service our debt; our ability to comply with the covenants in our senior secured credit facility; our ability to renew or extend long term sales contracts for our PCC satellite operations; consolidation in customer industries, principally paper, foundry and steel; compliance with or changes to regulation in the areas of environmental, health and safety, and tax; claims for legal, environmental and tax matters or product stewardship issues; our ability to successfully develop new products; our ability to defend our intellectual property; the increased risks of doing business abroad; the availability of raw materials and access to ore reserves at our mining operations; increases in costs of raw materials, energy, or shipping; our ability to compete in very competitive industries; operating risks and capacity limitations affecting our production facilities; seasonality of some of our segments; cybersecurity and other threats relating to our information technology systems; and other risk factors and cautionary statements in our 2019 Annual Report on Form 10--K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and other reports filed with the Securities and Exchange Commission. The Company undertakes no obligation to publicly update any forward--looking statement, whether as a result of new information, future events, or otherwise.

About Minerals Technologies Inc.

New York-based Minerals Technologies Inc. (MTI) is a global resource- and technology-based company that develops, produces and markets a broad range of specialty mineral, mineral-based and synthetic mineral products and related systems and services. MTI serves the paper, foundry, steel, construction, environmental, energy, polymer and consumer products industries. The Company reported sales of $1.6 billion in 2020. For further information, please visit our website at www.mineralstech.com. (MTI-E)

Investor Contact:

Erik Aldag, (212) 878-1831

Media Contact:

Michael Landau, (212) 878-1840

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February 04, 2021 17:01 ET (22:01 GMT)