TOR Minerals Reports Record Revenue and Net Income for Third Quarter 2011

CORPUS CHRISTI, Texas, Oct. 27, 2011 /PRNewswire/ -- TOR Minerals International (Nasdaq: TORM), producer of synthetic titanium dioxide and color pigments, specialty aluminas, and other high performance mineral fillers, today announced its financial results for the third quarter ended September 30, 2011.  Highlights for the third quarter of 2011 as compared to the third quarter of 2010 included:

• 3Q11 revenue increased 51% to $11.4 million versus $7.5 million in 3Q10
• 3Q11 diluted net income increased to $1.1 million versus 3Q10 diluted net income: $0.2 million
• 3Q11 diluted EPS: $0.33 versus 3Q10 EPS: $0.09
• Revenue for the nine months ended September 30, 2011 increased 41% to $31.5 million
• Diluted net income for the nine months ended September 30, 2011 increased 113% to $2.9 million
• Diluted EPS for the nine months ended September 30, 2011: $0.86 versus Diluted EPS for the nine months ended September 30, 2010: $0.48

For the third quarter ended September 30, 2011, the Company reported diluted net income available to common shareholders of $1,089,000 or $0.33 per diluted share, on net sales of $11,401,000.  This compares with diluted net income available to common shareholders of $243,000, or $0.09 per share, on net sales of $7,543,000 for the quarter ended September 30, 2010.  

Net sales increased 51 percent during the third quarter of 2011 due to strong increases in the Company's primary product categories.  Sales of titanium dioxide (TiO2) color pigments, which include HITOX® and TIOPREM® products, increased 82 percent to $5.7 million, benefiting from both higher prices and volumes.  Sales of specialty alumina, which includes the ALUPREM®, HALTEX® and OPTILOAD® product groups, grew 33 percent during the third quarter of 2011 due primarily to increased demand for existing and new products in Europe and North America.  Commenting on sales trends, Dr. Olaf Karasch, Chief Executive Officer, said, "We are experiencing strong secular growth in sales volumes, as many new customers are realizing the value added characteristics of our niche specialty mineral products.  Volumes of our TiO2 color pigment and specialty alumina products are growing well above market growth rates.  In addition, increased TiO2 color pigment pricing is contributing more to our revenue growth."  

During the third quarter of 2011, favorable trends in pricing, product mix and sales volumes were more than enough to offset increased raw material and energy costs.  As a result, gross margin improved 350 basis points year over year to 20.8% of sales.  Operating income increased to $1.2 million, or 10.6% of sales, compared to operating income of $397,000, or 5.3% of sales, reported in during the same period a year ago. "We continued to demonstrate the earnings leverage in our business model during the third quarter and posted our 11th quarter of year-over-year improvement in net margin," said Dr. Karasch.  

"Based on what we are seeing today, we are optimistic that we will continue to benefit from volume growth and price increases. For a relatively small incremental capital investment of less than $2 million, we have effectively doubled the capacity of our alumina plant in the Netherlands.  With this project complete and a strong backlog of orders, our specialty alumina growth rates should accelerate over the next several quarters," said Dr. Karasch.  "Recently, we have seen increased competitive pricing pressure from Chinese-based commodity TiO2 producers, which may affect near-term regional volume growth and selling prices in our Asian and South American markets.  At the same time, we expect recent price increases and continued volume growth in the U.S. and Europe to more than offset any near-term pressure in those markets."  

TOR Minerals will host a conference call at 4:00 p.m. Central Time on October 27, 2011, to further discuss third quarter results. The call will be simultaneously Webcast, and can be accessed via the News section on the Company's website, www.torminerals.com.  Interested parties may also access the conference call via telephone by dialing 877-407-8033.

Headquartered in Corpus Christi, Texas, TOR Minerals International is a global manufacturer and marketer of specialty mineral and pigment products for high performance applications with manufacturing and regional offices located in the United States, Netherlands and Malaysia.

This statement provides forward-looking information as that term is defined in the Private Securities Litigation Reform Act of 1995, and, therefore, is subject to certain risks and uncertainties. There can be no assurance that the actual results, business conditions, business developments, losses and contingencies and local and foreign factors will not differ materially from those suggested in the forward-looking statements as a result of various factors, including market conditions, general economic conditions, including the present slow down in U.S. construction and the risks of a general business slow down or recession, the increasing cost of energy, raw materials and labor, competition, the receptivity of the markets for our anticipated new products, advances in technology, changes in foreign currency rates, freight price increase, commodity price increases, delays in delivery of required equipment and other factors.

Contact for Further Information
Dave Mossberg,
Three Part Advisors, LLC
817 310-0051

SOURCE TOR Minerals International, Inc.