HOFFMAN ESTATES - Industrial products and services supplier AMCOL International said a stronger dollar and a declining market demand for several prodicts tempered third quarter 2012 net sales results.
Net sales were up 2.1 percent to $253.3 million for the quarter, compared to $248.1 million for the 2011 period. However, the company said in a statement that value fluctuations in foreign currencies brought the period's sales results down from apotential 4.7 percent increase.
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AMCOL also noted declines in a number of its product segments, notably its lining technologies product line, affceted the resuts.
"As the year has progressed, we have seen continued economic weakening and uncertainty impacting end markets in a number of sectors, especially those related to certain construction and consumer products as customers have delayed projects and reduced orders," said AMCOL President and CEO Ryan McKendrick.
Gross profit decreased 1.7 percent in the 2012 third quarter, and gross profit margin decreased 110 basis points to 27.4 percent, the company said. Selling, general and administrative expenses decreased 5 percen t to $41.8 million.
Operating profit was up 3.8 percennt to $27.6 million, and operating profit margins remained relatively constant at approximately 10.9 percent.
McKendrick said while sales results in the company's Mining and Minerals and Environmental divisions declines 1.1 percent and 15 percent, respectively, the company's Oilfied Services division saw record revenues as the company strengthened its poisition in key markets where they anticipate further growth.
"We are confident in the long term fundamentals of our business, and our growth strategy remains unchanged. We continue building the framework to maintain our leadership position in key product lines by expanding our global presence and developing a balanced participation in growing market sectors such as energy, industrial, consumer, and infrastructure," he added.
Diluted earnings from continuing operations were 58 cents per share for the quarter, compared to 66 cents per share in the prior year's quarter. The company said that figure included a 7 cents per share benefit from the gain on the sale of our Belgian joint venture investment and a 3 cents per share benefit from the favorable settlement of tax audits.