AMCOL International Corporation Reports Fourth Quarter and 2010 Year End Results

For the fourth quarter of 2010, AMCOL International Corporation reports a loss attributable to AMCOL shareholders of $0.30 per diluted share compared to earnings of $0.36 per diluted share in the 2009 period. However, these losses result largely from unusual items recorded in the fourth quarter of 2010. Excluding these unusual items, we generated net income attributable to AMCOL shareholders of $0.21 per diluted share as compared to the prior year amount of $0.31 per diluted share, which has also been adjusted for unusual items.

Net sales increased 26.4% to $223.4 million for the quarter ended December 31, 2010, compared to $176.7 million for the 2009 period. Operating profit increased by 11.6% over the 2009 period to $11.5 million. Foreign currency translation did not have a material impact on our comparative results for the quarter.

The net loss in the current quarter includes non-cash losses from impairments associated with two of our joint ventures of $0.37 per diluted share, expenses of $0.05 per diluted share associated with the retirement of our previous CEO, expenses of $0.05 per diluted share resulting from operational issues in our domestic personal care products group within our Minerals & Materials segment, and tax expenses of $0.04 per diluted share associated with the recognition of valuation allowances in our foreign jurisdictions. The 2009 results include benefits of $0.05 per diluted share for resolution of certain income tax matters and a gain on the sale of a portion of our investment in Ashapura Minechem Limited.

For the twelve-month periods ended December 31, 2010 and 2009, we generated net income attributable to AMCOL shareholders of $0.96 per diluted share compared to earnings of $1.12 per diluted share in the 2009 period. Net income attributable to AMCOL shareholders, adjusted for the unusual items mentioned above, was $1.57 per diluted share for the twelve months ending December 31, 2010 and $1.11 per diluted share for the comparable period ending December 31, 2009. The 2010 period includes the same adjustments for the same amounts as previously mentioned, except that the expenses associated with our personal care business totaled $0.15 per diluted share instead of the quarterly $0.05 per diluted share mentioned above. The 2009 period includes not only the related adjustments mentioned previously but also $0.04 of per diluted share of expenses associated with writing off certain metalcasting operations.

Net sales for the twelve-month period ended December 31, 2010, increased 21.2% to $852.5 million, compared with $703.2 million for 2009. Operating profit increased 28.1% to $68.5 million compared to $53.5 million in the prior year period. Foreign currency translation did not have a material impact on our comparative results for the twelve-month period.

“Excluding the negative impact from unusual items, our Minerals & Materials and Oilfield Services segments were generally in line with our expectations for the quarter,” said Ryan McKendrick, AMCOL President and Chief Executive Officer. “Our Environmental segment had a challenging quarter, and we have an action plan to improve its performance in 2011.”

McKendrick continued, “The Minerals segment had another good quarter with increased revenue resulting from steady domestic and European business combined with continued growth in Asia. Gross margin was impacted by operational issues in our domestic personal care products group that continued into the fourth quarter. We do not expect significant additional costs going forward.”

“The Environmental segment had a nice increase in revenue; however, margins were down as more of the sales mix was from lower margin contracting services. Building materials revenue and margins improved despite continued overall weakness in US non-residential construction. European sales remained steady but had lower margins due to mix, price pressure, and severe weather impacting construction activity. Expense control in this segment will be an area of increased focus going forward,” McKendrick continued.

“Oilfield services continued to perform well with revenue and operating profit up nicely over the prior year’s quarter and sequentially. Most business lines improved except for nitrogen services, which is most affected by the downturn in deep water drilling as a result of the Deepwater Horizon accident,” McKendrick added.