AMCOL International 4Q sales up 6.5 percent

Hoffman Estates-based AMCOL International reported its fourth quarter net sales increased 6.5 percent based on string demands in the minerals and materials sector

The company said Net sales for the quarter was $233.7 million, up from $219.4 million from the same period last year. Gross profit increased 16.1 percent while gross margin increased 220 basis points to 26.6 percent, the company said in a statement.

Operating profit increased 63.8 percent with operating margin increasing by 300 basis points to 8.6 percent.

“Sales for the quarter were in line with our expectations,” said Ryan McKendrick, AMCOL president and chief executive officer. “We were pleased with the sales growth and improvement in gross margin in our Minerals and Materials, and Oilfield Services segments, versus the prior year's quarter — the most important factors leading to the increase in operating profit.

“Our Minerals and Materials segment generated 6 percent sales growth versus the prior year's Q4 with significant gross margin improvement,” McKendriock added. “Market conditions for our metalcasting product line remained steady, and the outlook for 2012 remains positive. Our chromite product line also generated steady sales and an operating profit for the quarter. We expect the profit generated by these chromite products to improve after completion of equipment and process upgrades currently under way. Demand for oil drilling fluids and specialty products is expected to remain steady as well.”

McKendrick said changes in the company's Environmental segment's management and several product lines helped keep sales in that segment in line with previous years, but economic issues in Europe brought lower than expected profit margins on the lining technologies products.

“Price increases in the U.S. lining technologies product line have started to show some positive effect for our core products, but were offset by low margin sales of purchased products on several large projects during the quarter,” he said.

McKendrick said building materials concluded a strong year resulting from expansion of its product portfolio and enhanced project support capabilities, as did the company's drilling products.