TOR Minerals International's alumina revenue falls 23% in 3Q17

TOR Minerals International, Inc. producer of high performance specialty minerals published its financial results for the third quarter ended September 30, 2017. The company’s sales decreased 5 percent to $9.5 million in Q3 2017. The decrease in revenue was primarily due to a 23 percent decrease in specialty alumina sales.

“The decrease in Specialty Alumina sales was primarily related to a decrease in volume from a significant U.S. customer.  The decrease in sales to this customer was partially offset by 37 percent growth of specialty alumina sales in Europe and growth of OPTILOAD to both existing and new customers,” it said.

The company’s revenue of specialty aluminas stood at $4.4 million in the third quarter as compared to $5.8 million in the same period of 2016.

Gross margin decreased 8.3 percentage points to 7.5 percent of sales due to lower fixed cost absorption from lower specialty alumina production volumes.

Dr. Olaf Karasch, Chief Executive Officer said: “To offset lower fixed cost absorption, we have accelerated plans to improve efficiencies of specialty alumina production and are cutting some variable costs in that area without compromising the ability to resume rapid growth.” 

“Overall, we expect near-term financial performance will remain under pressure from lower specialty alumina volumes.  Nevertheless, we are optimistic about the growth of our new specialty alumina products.” 

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.