SOURCE: AMCOL International

AMCOL International

October 22, 2010 07:00 ET

AMCOL International Corporation (NYSE: ACO) Reports Third Quarter Results

HOFFMAN ESTATES, IL--(Marketwire - October 22, 2010) - AMCOL International Corporation (NYSE: ACO) today reported 2010 third quarter net income attributable to AMCOL shareholders of $0.55 per diluted share as compared to $0.43 per diluted share in the prior year's period. The current period includes charges due to operational issues from our domestic personal care products group, within the Minerals & Materials segment of $.06 per diluted share, and a gain on foreign currency transactions of $.05 per diluted share.

Net sales increased 22.3% to $233.5 million for the quarter ended September 30, 2010 from $190.9 million in the 2009 period. Operating profit increased 17.1% over the 2009 third quarter to $22.5 million. Foreign currency translation did not have a material impact on our comparative results for the quarter.

Net sales for the nine-month period ended September 30, 2010 increased 19.5% to $629.1 million, compared with $526.5 million for the 2009 period. Operating profit increased 32.1% over the 2009 period to $57.0 million. Foreign currency translation did not have a material impact on our comparative results for the nine-month period.

This release should be read in conjunction with the attached unaudited condensed consolidated financial statements. Further discussion of items and events impacting earnings are included later in this press release.

"Overall, it was a good quarter, especially in our Minerals & Materials segment," said Larry Washow, AMCOL President and Chief Executive Officer. "Our Environmental and Oilfield Services segments were generally in line with our expectations."

Washow continued, "The Minerals & Materials segment had another strong quarter as a stable US business combined with growth in Asia and solid results in Europe produced a good revenue number. The operational issues in domestic personal care products hurt our margins, however, we believe we have addressed these issues and do not expect similar charges going forward. Expected start-up losses from the South Africa chrome business also impacted margins in the quarter. Our other consumer related products are performing well and we have seen nice improvement in basic minerals. We believe we are well positioned across the segment with metalcasting continuing to show strength around the world."

"As expected, Environmental generated their highest quarterly revenue of the year. The margins were down as the business mix included more sales from contracting services, which tends to have lower margins. Building materials revenue is up somewhat from last year, but we still do not see significant improvement in the market," Washow continued.

"Oilfield Services revenue was up substantially from last year, and improved sequentially as well; nearly all of our business lines showed growth. Coil tubing sales in particular have been expanding and we look for it to perform well in the months ahead. We continue to improve our overseas service capability as we look for stronger growth prospects than those we see in the Gulf of Mexico," Washow added.

"The performance of the Minerals & Materials segment continues to be very encouraging and was a key contributor to the third quarter. Although the holidays will impact the fourth quarter, we expect continued margin improvement from Minerals & Materials into the fourth quarter. Activity in the Environmental segment is still soft, but we are seeing some larger projects develop and contracting services should continue to expand. Oilfield Services is also well positioned to wrap up a better year in revenue, and we are working to improve margins," Washow concluded.

STATEMENT OF OPERATIONS HIGHLIGHTS:

The statement of operations highlights are supported by the segment results schedules included in this press release.

Net sales: The following discusses the reasons for the increased revenue by segment for the 2010 third quarter as compared to the prior year's quarter.

Minerals & Materials: The majority of the revenue improvement was due to increased volumes, principally in domestic and Asian metalcasting markets, resulting from increased demand for castings for automobiles and heavy equipment. Our basic minerals group had increased volumes driven by greater demand for drilling products for oil and gas wells.

Environmental: The revenue increase is principally due to increased demand for our European contracting services and our domestic building materials and drilling products.

Oilfield Services: The majority of the increase is due to greater demand for services from our domestic coiled tubing and Australian operations.

Transportation: Approximately one third of the revenue increase was due to increased fuel-surcharges and the remainder was from greater demand for consumer product shipments.

Gross profit: Gross profit increased $4.6 million, or 8.6%, from the 2009 third quarter, while gross margin decreased 310 basis points to 25.1%.

Minerals & Materials: Gross profit increased $4.2 million, or 21.0%, from the 2009 quarter, and gross margins decreased 50 basis points to 21.7%, principally due to the operational issues in domestic personal care products, and start-up losses in our South African chrome sand business, offset by greater volumes and increased operating efficiencies.

Environmental: Gross profit decreased $1.9 million, or 8.5%, from the 2009 quarter. Gross margins decreased 650 basis points to 29.0%. The decrease in gross margin is principally due to an increase in sales in our lower margin contracting services and increased competition in lining technologies products.

Oilfield Services: Gross profit increased $2.3 million, or 24.3% from the 2009 quarter. Gross margin decreased 400 basis points to 29.0% due to changes in the composition of revenues by service offering.

General, selling and administrative expenses (GS&A): GS&A expenses increased $1.3 million, or 3.9%, from the prior year quarter due to increased employee compensation and benefits costs.

Interest expense, net: Interest expense, net, decreased $.3 million due to reduced overall average interest rates on average debt levels that were comparable to the prior year quarter.

Other, net: Other, net is comprised mostly of foreign currency transaction and currency derivative gains and losses. The $2.1 million increase is due to increased gains from foreign currency transactions.

Income taxes: The third quarter results include income tax expense of $5.2 million versus an expense of $3.3 million in the prior year period. The increased expense results from greater pre-tax income. The effective tax rate increased as a greater portion of pre-tax income was generated in our domestic operations, which typically are subject to higher tax rates than those in effect in foreign countries.

Income (loss) from affiliates and joint ventures: The $0.4 million reduction from the prior year is due to lower earnings in our Indian and Russian joint ventures and affiliates.

Share count: Our weighted average common and common equivalent shares outstanding increased 1.6% to 31.6 million; but did not have a material impact on our quarterly diluted earnings per share attributable to AMCOL shareholders.

FINANCIAL POSITION AND CASH FLOW HIGHLIGHTS:

Long-term debt increased $22.7 million to $229.7 million during the nine months ended September 30, 2010. During that time, we have invested in working capital to support our revenue growth, purchased the remaining 47% of the chrome mine in South Africa, and invested in a related chrome processing plant. Total long-term debt, net represented 36.1% of capitalization at September 30, 2010 as compared to 35.3% at December 31, 2009. Cash and cash equivalents decreased $7.3 million to $20.3 million at September 30, 2010 as compared to December 31, 2009.

Net working capital increased $35.1 million from December 31, 2009 to $238.8 million at September 30, 2010. The increase in working capital was due to increased sales volumes.

Cash flow generated from operating activities was $35.2 million for year-to-date September 30, 2010 compared with $90.6 million in the prior year period. Throughout 2009, we decreased our working capital levels significantly in response to the economic recession and lower sales volumes. Thus, we generated significantly less cash flows from operations in the 2010 period as working capital levels have increased since the prior year end due to the increase in sales volumes.

Capital expenditures for year-to-date September 30, 2010 were $37.9 million, of which $13.6 million relates to our construction of our chrome processing facility in South Africa. Excluding our corporate building, comparative amounts in the 2009 period were $39.6 million. The 2009 period also included $17.7 million of expenditures to purchase 53% of the aforementioned chrome mine and start constructing the related processing facility.

In September 2010, we purchased the remaining 47% of the noncontrolling South Africa chrome mine for $10.8 million, which is reflected in the financing section of the cash flow statement as purchase of noncontrolling interests.

Dividends through September 30, 2010 remained roughly the same over the prior year period as our dividend per share has remained constant at $0.18 per quarter per share since the third quarter of 2008.

This release contains certain forward-looking statements regarding AMCOL's expected performance for future periods and actual results for such periods might materially differ. Such forward-looking statements are subject to uncertainties, which include, but are not limited to, actual growth in AMCOL's various markets, utilization of AMCOL's plants, currency exchange rates, currency devaluation, delays in development, production and marketing of new products, integration of acquired businesses, and other factors detailed from time to time in AMCOL's annual report and other reports filed with the Securities and Exchange Commission. AMCOL undertakes no duty to update any forward-looking statement to conform the statement to actual results or changes in AMCOL's expectations.

AMCOL International, headquartered in Hoffman Estates, IL, produces and markets a wide range of specialty mineral products used for industrial, environmental and consumer-related applications. AMCOL is the parent of American Colloid Company, CETCO (Colloid Environmental Technologies Company), CETCO Oilfield Services Company and the transportation operations, Ameri-co Carriers, Inc. and Ameri-co Logistics, Inc. AMCOL's common stock is traded on the New York Stock Exchange under the symbol ACO. AMCOL's web address is www.amcol.com. AMCOL's third quarter conference call will be available live today at 11 a.m. ET on the AMCOL website or by dialing 1.888.466.4509.

Financial tables follow.

                      AMCOL INTERNATIONAL CORPORATION
              CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                                (unaudited)
                  (In thousands, except per share data)


                                  Nine Months Ended   Three Months Ended
                                    September 30,       September 30,
                                -------------------- --------------------
                                  2010       2009       2010       2009
                                ---------  ---------  ---------  ---------

Net sales                       $ 629,115  $ 526,539  $ 233,451  $ 190,920
Cost of sales                     465,304    382,320    174,962    137,069
                                ---------  ---------  ---------  ---------
   Gross profit                   163,811    144,219     58,489     53,851
General, selling and
 administrative expenses         106,785    101,047     35,967     34,626
                                ---------  ---------  ---------  ---------
   Operating profit                57,026     43,172     22,522     19,225
                                ---------  ---------  ---------  ---------
Other income (expense):
   Interest expense, net           (7,092)    (9,399)    (2,542)    (2,833)
   Other, net                       2,066     (2,595)     2,183        119
                                ---------  ---------  ---------  ---------
                                   (5,026)   (11,994)      (359)    (2,714)
                                ---------  ---------  ---------  ---------
   Income before income taxes
    and income (loss) from
    affiliates and joint
    ventures                       52,000     31,178     22,163     16,511
Income tax expense                 12,894      6,388      5,193      3,271
                                ---------  ---------  ---------  ---------
   Income before income (loss)
    from affiliates and joint
    ventures                       39,106     24,790     16,970     13,240
Income (loss) from affiliates
 and joint ventures                   266       (921)       337        721

                                ---------  ---------  ---------  ---------
   Net income (loss)               39,372     23,869     17,307     13,961
                                ---------  ---------  ---------  ---------

Net income (loss) attributable
 to noncontrolling interests         (322)       296       (110)       661

                                ---------  ---------  ---------  ---------
Net income (loss) attributable
 to AMCOL shareholders          $  39,694  $  23,573  $  17,417  $  13,300
                                =========  =========  =========  =========

Weighted average common shares
 outstanding                       31,137     30,735     31,225     30,766

Weighted average common and
 common equivalent shares
 outstanding                       31,498     30,973     31,565     31,061

Basic earnings per share
 attributable to AMCOL
 shareholders                   $    1.27  $    0.77  $    0.56  $    0.43

Diluted earnings per share
 attributable to AMCOL
 shareholders                   $    1.26  $    0.76  $    0.55  $    0.43

Dividends declared per share    $    0.54  $    0.54  $    0.18  $    0.18





                      AMCOL INTERNATIONAL CORPORATION
                  CONDENSED CONSOLIDATED BALANCE SHEETS
                              (In thousands)


                                                 September 30, December 31,
                                                      2010        2009
ASSETS                                            (unaudited)       *
                                                  ------------ ------------
 Current assets:
   Cash and equivalents                           $     20,326 $     27,669
   Accounts receivable, net                            201,092      148,260
   Inventories                                         105,469       96,173
   Prepaid expenses                                     12,938       12,509
   Deferred income taxes                                 7,706        6,525
   Income tax receivable                                 9,158        2,431
   Other                                                 5,979          463
                                                  ------------ ------------
     Total current assets                              362,668      294,030
                                                  ------------ ------------

 Noncurrent assets:
   Property, plant, equipment, mineral rights and
    reserves:
    Land and mineral rights                             60,523       57,898
    Depreciable assets                                 448,494      414,617
                                                  ------------ ------------
                                                       509,017      472,515
    Less: accumulated depreciation and depletion       253,018      236,269
                                                  ------------ ------------
                                                       255,999      236,246
                                                  ------------ ------------

   Goodwill                                             71,260       71,156
   Intangible assets, net                               44,370       47,185
   Investments in and advances to affiliates and
    joint ventures                                      33,544       32,228
   Available-for-sale securities                        17,917       25,563
   Other assets                                         22,278       27,852
     Total noncurrent assets                           445,368      440,230
                                                  ------------ ------------
                                                  $    808,036 $    734,260
                                                  ============ ============

LIABILITIES AND SHAREHOLDERS' EQUITY

 Current liabilities:
   Accounts payable                               $     61,830 $     40,335
   Accrued liabilities                                  62,029       49,981
     Total current liabilities                         123,859       90,316
                                                  ------------ ------------

 Noncurrent liabilities:
   Long-term debt                                      229,690      207,017
   Pension liabilities                                  21,420       20,403
   Deferred compensation                                 7,980        7,544
   Other long-term liabilities                          19,691       29,208
     Total noncurrent liabilities                      278,781      264,172
                                                  ------------ ------------

 Equity:
   Common stock                                            320          320
   Additional paid in capital                           91,666       84,830
   Retained earnings                                   298,149      275,200
   Accumulated other comprehensive income               24,615       32,174
                                                       414,750      392,524
 Less:
   Treasury stock                                       10,608       14,377
 Total AMCOL shareholders' equity                      404,142      378,147
                                                  ------------ ------------
   Noncontrolling interest                               1,254        1,625
 Total equity                                          405,396      379,772
                                                  ------------ ------------

                                                  $    808,036 $    734,260

* Condensed from audited financial statements.





                      AMCOL INTERNATIONAL CORPORATION
        CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)
                              (In thousands)

                                                      Nine Months Ended
                                                        September 30,
                                                  ------------------------
                                                      2010        2009
                                                  -----------  -----------
Cash flow from operating activities:
 Net income                                       $    39,372  $    23,869
 Adjustments to reconcile net income to net cash
 provided by (used in) operating activities:
  Depreciation, depletion, and amortization            26,470       26,781
  Other non-cash charges                                3,174        9,023
  Changes in assets and liabilities, net of
   effects of acquisitions:
    Decrease (increase) in current assets             (69,385)      35,096
    Decrease (increase) in noncurrent assets           (2,298)      (1,257)
    Increase (decrease) in current liabilities         34,832       (7,480)
    Increase (decrease) in noncurrent liabilities       2,999        4,586
                                                  -----------  -----------
    Net cash provided by (used in) operating
     activities                                        35,164       90,618
                                                  -----------  -----------
Cash flow from investing activities:
 Capital expenditures                                 (37,944)     (39,637)
 Capital expenditures - corporate building                  -       (9,651)
 Proceeds from sale of depreciable assets -
  corporate building                                        -        9,651
 Receipts from Chrome Corp                                  -        6,000
 Investments in and advances to affiliates and
  joint ventures                                       (2,047)      (2,647)
 Other                                                  1,210        2,384
                                                  -----------  -----------
    Net cash used in investing activities             (38,781)     (33,900)
                                                  -----------  -----------
Cash flow from financing activities:
 Net change in outstanding debt                        21,004      (42,467)
 Purchase of noncontrolling interest                  (11,873)           -
 Proceeds from sales of treasury stock                  3,252        1,005
 Purchases of treasury stock                                -         (165)
 Dividends                                            (16,745)     (16,526)
 Excess tax benefits from stock-based
  compensation                                            394          464
                                                  -----------  -----------
    Net cash provided by (used in) financing
     activities                                        (3,968)     (57,689)
                                                  -----------  -----------
Effect of foreign currency rate changes on cash           242          897
                                                  -----------  -----------
Net increase (decrease) in cash and cash
 equivalents                                           (7,343)         (74)
                                                  -----------  -----------
Cash and cash equivalents at beginning of period       27,669       19,441
                                                  -----------  -----------
Cash and cash equivalents at end of period        $    20,326  $    19,367
                                                  ===========  ===========



                      AMCOL INTERNATIONAL CORPORATION
                        SEGMENT RESULTS (unaudited)
                              QUARTER-TO-DATE


                                 Three Months Ended September 30,
                         --------------------------------------------------
Minerals and Materials         2010             2009         2010 vs 2009
                         ---------------- ---------------  ----------------
                                       (Dollars in Thousands)
                         ==================================================

Net sales                $ 110,332 100.0% $  89,021 100.0% $  21,311  23.9%
Cost of sales               86,383  78.3%    69,232  77.8%    17,151  24.8%
                         --------- -----  --------- -----  ---------
  Gross profit              23,949  21.7%    19,789  22.2%     4,160  21.0%
General, selling and
 administrative expenses    11,608  10.5%     9,317  10.5%     2,291  24.6%
                         --------- -----  --------- -----  ---------
  Operating profit          12,341  11.2%    10,472  11.7%     1,869  17.8%


                                   Three Months Ended September 30,
                           ------------------------------------------------
Environmental                    2010           2009         2010 vs 2009
                           --------------   --------------- ---------------
                                       (Dollars in Thousands)
                           ================================================

Net sales                  $  72,373 100.0% $ 64,493 100.0% $ 7,880   12.2%
Cost of sales                 51,418  71.0%   41,603  64.5%   9,815   23.6%
                           --------- -----  -------- -----  -------
  Gross profit                20,955  29.0%   22,890  35.5%  (1,935)  -8.5%
General, selling and
 administrative expenses      12,404  17.1%   12,135  18.8%     269    2.2%
                           --------- -----  -------- -----  -------
  Operating profit             8,551  11.9%   10,755  16.7%  (2,204) -20.5%



                                   Three Months Ended September 30,
                            -----------------------------------------------
Oilfield Services                 2010           2009         2010 vs 2009
                            ---------------- --------------  --------------
                                        (Dollars in Thousands)
                            ===============================================

Net sales                   $  41,204 100.0% $ 29,109 100.0% $ 12,095 41.6%
Cost of sales                  29,249  71.0%   19,491  67.0%    9,758 50.1%
                            --------- -----  -------- -----  --------
  Gross profit                 11,955  29.0%    9,618  33.0%    2,337 24.3%
General, selling and
 administrative expenses        7,876  19.1%    6,522  22.4%    1,354 20.8%
                            --------- -----  -------- -----  --------
  Operating profit              4,079   9.9%    3,096  10.6%      983 31.8%



                                   Three Months Ended September 30,
                            -----------------------------------------------
Transportation                    2010            2009        2010 vs 2009
                            ---------------- --------------  --------------
                                        (Dollars in Thousands)
                            ===============================================

Net sales                   $  14,284 100.0% $ 12,487 100.0% $  1,797 14.4%
Cost of sales                  12,654  88.6%   10,933  87.6%    1,721 15.7%
                            --------- -----  -------- -----  --------
  Gross profit                  1,630  11.4%    1,554  12.4%       76  4.9%
General, selling and
 administrative expenses          876   6.1%      861   6.9%       15  1.7%
                            --------- -----  -------- -----  --------
  Operating profit                754   5.3%      693   5.5%       61  8.8%




                            Three Months Ended September 30,
                            ---------------------------------
Corporate                     2010      2009    2010 vs 2009
                            --------  --------  -------------
                                  (Dollars in Thousands)
                            =================================

Intersegment shipping
 sales                      $ (4,742) $ (4,190) $ (552)
Intersegment shipping
 costs                        (4,742)   (4,190)   (552)
                            --------  --------  ------
  Gross profit                     -         -       -
General, selling and
 administrative expenses       3,203     5,791  (2,588) -44.7%
                            --------  --------  ------
  Operating loss               3,203     5,791  (2,588) -44.7%




                      AMCOL INTERNATIONAL CORPORATION
                        SEGMENT RESULTS (unaudited)
                               YEAR-TO-DATE


                              Nine Months Ended September 30,
                  --------------------------------------------------------
Minerals and
 Materials                2010                 2009          2010 vs 2009
                  ---------------------   --------------  ----------------
                                   (Dollars in Thousands)
                  ========================================================

Net sales         $ 314,417       100.0% $ 244,657  100.0% $ 69,760   28.5%
Cost of sales       238,918        76.0%   193,774   79.2%   45,144   23.3%
                  ---------  ----------  ---------  -----  --------
  Gross profit       75,499        24.0%    50,883   20.8%   24,616   48.4%
General, selling
 and administrative
 expenses            32,526        10.3%    27,020   11.0%    5,506   20.4%
                  ---------  ----------  ---------  -----  --------
  Operating
   profit            42,973        13.7%    23,863    9.8%   19,110   80.1%




                             Nine Months Ended September 30,
                  --------------------------------------------------------
 Environmental            2010                 2009         2010 vs 2009
                  ---------------------   --------------  ----------------
                                   (Dollars in Thousands)
                  ========================================================

Net sales         $ 175,707       100.0% $ 164,096  100.0% $ 11,611    7.1%
Cost of sales       123,634        70.4%   107,580   65.6%   16,054   14.9%
                  ---------  ----------  ---------  -----  --------
  Gross profit       52,073        29.6%    56,516   34.4%   (4,443)  -7.9%
General, selling
 and administrative
 expenses            35,725        20.3%    34,913   21.3%      812    2.3%
                  ---------  ----------  ---------  -----  --------
  Operating
   profit            16,348         9.3%    21,603   13.1%   (5,255) -24.3%




                              Nine Months Ended September 30,
                  --------------------------------------------------------
Oilfield                  2010                 2009         2010 vs 2009
                  ---------------------   --------------  ----------------
                                   (Dollars in Thousands)
                  ========================================================

Net sales         $ 111,052       100.0% $  93,140  100.0% $ 17,912   19.2%
Cost of sales        79,313        71.4%    60,554   65.0%   18,759   31.0%
                  ---------  ----------  ---------  -----  --------
  Gross profit       31,739        28.6%    32,586   35.0%     (847)  -2.6%
General, selling
 and administrative
 expenses            21,879        19.7%    20,123   21.6%    1,756    8.7%
                  ---------  ----------  ---------  -----  --------
  Operating
   profit             9,860         8.9%    12,463   13.4%   (2,603) -20.9%



                              Nine Months Ended September 30,
                  --------------------------------------------------------
Transportation              2010               2009         2010 vs 2009
                  ---------------------   --------------  ----------------
                                   (Dollars in Thousands)
                  ========================================================

Net sales         $  39,987       100.0% $  35,336  100.0% $  4,651   13.2%
Cost of sales        35,487        88.7%    31,102   88.0%    4,385   14.1%
                  ---------  ----------  ---------  -----  --------
  Gross profit        4,500        11.3%     4,234   12.0%      266    6.3%
General, selling
 and administrative
 expenses             2,536         6.3%     2,551    7.2%      (15)  -0.6%
                  ---------  ----------  ---------  -----  --------
  Operating
   profit             1,964         5.0%     1,683    4.8%      281   16.7%


                       Nine Months Ended September 30,
                  ---------------------------------------
Corporate            2010       2009       2010 vs 2009
                  ---------  ----------  ----------------
                                   (Dollars in Thousands)
                  =======================================

 Intersegment
  shipping sales  $ (12,048) $  (10,690) $  (1,358)
 Intersegment
  shipping costs    (12,048)    (10,690)    (1,358)
                  ---------  ----------  ---------
  Gross profit            -           -          -
 General, selling
  and
   administrative
    expenses         14,119      16,440     (2,321) -14.1%
                  ---------  ----------  ---------
 Operating loss     (14,119)    (16,440)     2,321  -14.1%




                      AMCOL INTERNATIONAL CORPORATION
                  SUPPLEMENTARY INFORMATION (unaudited)
                              QUARTER-TO-DATE


                                  Three Months Ended September 30, 2010
                               -------------------------------------------
  Composition of Sales by
   Geographic Region           Americas       EMEA    Asia Pacific  Total
                               ---------  -----------  -----------  ------
Minerals and materials              29.6%         8.1%         9.6%   47.3%
Environmental                       14.9%        13.7%         2.4%   31.0%
Oilfield services                   14.2%         0.6%         2.8%   17.6%
Transportation                       4.1%         0.0%         0.0%    4.1%
                               ---------  -----------  -----------  ------
Total - current year's period       62.8%        22.4%        14.8%  100.0%
                               =========  ===========  ===========  ======
Total from prior year's
 comparable period                  64.0%        25.1%        10.9%  100.0%


                                     Three Months Ended September 30, 2010
                                                     vs.
                                     Three Months Ended September 30, 2009
                                ------------------------------------------
Percentage of Revenue Growth       Base                   Foreign
 by Component                   Business  Acquisitions   Exchange   Total
                               ---------  -----------  -----------  ------
 Minerals and materials             11.0%         0.0%         0.2%   11.2%
 Environmental                       4.3%         0.2%        -0.4%    4.1%
 Oilfield services                   5.9%         0.0%         0.4%    6.3%
 Transportation                      0.7%         0.0%         0.0%    0.7%
                               ---------  -----------  -----------  ------
 Total                              21.9%         0.2%         0.2%   22.3%
                               =========  ===========  ===========  ======
 % of growth                        97.8%         0.9%         1.3%  100.0%



                                  Three Months Ended September 30,
                               -----------------------------------
  Minerals and Materials
   Product Line Sales             2010       2009       % change
                               ---------  -----------  -----------
                                       (Dollars in Thousands)
                               ===================================

Metalcasting                   $  53,632  $    38,097         40.8%
Specialty materials               27,211       26,661          2.1%
Pet products                      15,848       16,959         -6.6%
Basic minerals                    12,015        6,348         89.3%
Other product lines                1,626          956            *
                               ---------  -----------
  Total                          110,332       89,021         23.9%
                               =========  ===========
   * Not meaningful.


                                  Three Months Ended September 30,
                               -----------------------------------
Environmental Product Line
 Sales                            2010        2009       % change
                               ---------  -----------  -----------
                                       (Dollars in Thousands)
                               ===================================


 Lining technologies           $  33,407  $    33,484         -0.2%
 Building materials               15,822       14,227         11.2%
 Contracting services             16,148       11,243         43.6%
 Drilling products                 6,996        5,539         26.3%
                               ---------  -----------
  Total                           72,373       64,493         12.2%
                               =========  ===========





                      AMCOL INTERNATIONAL CORPORATION
                  SUPPLEMENTARY INFORMATION (unaudited)
                               YEAR-TO-DATE

                           Nine Months Ended September 30, 2010
                        ----------------------------------------
  Composition of Sales
   by Geographic                                 Asia
   Region               Americas      EMEA      Pacific   Total
                       ---------  -----------  ---------  -----
Minerals and materials      31.6%         8.6%       9.8%  50.0%
Environmental               13.4%        12.0%       2.5%  27.9%
Oilfield services           14.7%         0.6%       2.4%  17.7%
Transportation               4.4%         0.0%       0.0%   4.4%
                       ---------  -----------  ---------  -----
Total - current
 year's period              64.1%        21.2%      14.7% 100.0%
                       =========  ===========  =========  =====
Total from prior
 year's comparable
 period                     65.9%        23.5%      10.6% 100.0%


                         Nine Months Ended September 30, 2010
                                          vs.
                         Nine Months Ended September 30, 2009
                       ----------------------------------------
Percentage of Revenue                            Foreign
 Growth by Component     Organic  Acquisitions  Exchange  Total
                       ---------  -----------  ---------  -----
Minerals and materials      12.4%         0.0%       0.8%  13.2%
Environmental                1.5%         0.2%       0.5%   2.2%
Oilfield services            2.9%         0.0%       0.5%   3.4%
Transportation               0.6%         0.0%       0.0%   0.6%
                       ---------  -----------  ---------  -----
Total                       17.4%         0.2%       1.8%  19.4%
                       =========  ===========  =========  =====
 % of growth                89.3%         1.0%       9.7% 100.0%


                         Nine Months Ended September 30,
                       ----------------------------------
Minerals and Materials
 Product Line Sales      2010        2009       % change
                       ---------  -----------  ----------
                             (Dollars in Thousands)
                       ==================================

Metalcasting           $ 147,829  $   100,592       47.0%
Specialty materials       80,074       71,330       12.3%
Pet products              46,739       49,729       -6.0%
Basic minerals            34,790       20,288       71.5%
Other product lines        4,985        2,718          *
                       ---------  -----------
  Total                  314,417      244,657       28.5%
                       =========  ===========
   * Not meaningful.

                        Nine Months Ended September 30,
                      -----------------------------------
Environmental Product
 Line Sales               2010        2009      % change
                       ---------  -----------  ----------
                             (Dollars in Thousands)
                       ==================================

Lining technologies    $  84,994  $    78,768        7.9%
Building materials        41,863       41,704        0.4%
Contracting services      30,787       27,382       12.4%
Drilling products         18,063       16,242       11.2%
                       ---------  -----------
  Total                  175,707      164,096        7.1%
                       =========  ===========

Contact Information

  • For further information, contact:
    Don Pearson
    Vice President & Chief Financial Officer
    847.851.1500