Financial Data and Key Metrics Changes - First quarter sales were $492 million, an 8% decrease year-over-year primarily due to lower volumes and unfavorable mix, along with unfavorable foreign exchange [20][22] - Operating income was $63 million, with an operating margin of 12.9%, impacted by temporary cost increases in the Consumer and Specialty segment [22][23] - Earnings per share excluding special items was $1.14, with several special items recorded including a $215 million provision for BMI Old Co [23][24] Business Line Data and Key Metrics Changes - In the Consumer and Specialties segment, first quarter sales were $268 million, adversely affected by changes in customer order patterns and cautious inventory management [23][25] - The Engineered Solutions segment reported first quarter sales of $224 million, with stable market conditions in North America but lower demand in Europe [26][27] - Positive trends were noted in Household and Personal Care, with sales up 6% from the prior year, while Specialty Additives also saw growth in ground calcium carbonate [25][26] Market Data and Key Metrics Changes - The North American foundry market remained stable, while the China foundry business experienced strong growth due to higher export production [15][27] - Environmental and Infrastructure projects showed stability, with sales of Environmental Lighting applications up 19% year-over-year [28] - The overall market remains uncertain, with customer behavior influenced by changing tariff structures and economic conditions [10][11] Company Strategy and Development Direction - The company aims to penetrate core markets further, grow sales of higher-margin consumer-oriented products, and drive innovation [17][18] - The focus remains on products that address long-term growth pathways, such as water filtration technologies and renewable fuels [17][18] - The company is prepared to make operational and cost adjustments as needed to maintain a strong financial position [18] Management's Comments on Operating Environment and Future Outlook - Management characterized the quarter as challenging but noted a potential uptick in sales patterns moving into the second quarter [10][11] - There is significant uncertainty in the markets, but management remains confident in the company's long-term growth targets [17][18] - The company expects a stronger second quarter with sales projected to be 5% to 10% higher than the first quarter [34][36] Other Important Information - The company identified $10 million in cost savings targeted at efficiency improvements and general reductions in overhead [8][9] - A reserve of $215 million was established for estimated costs related to talc claims and ongoing litigation [9][23] - The company has a solid balance sheet with nearly $700 million in liquidity and a net leverage ratio of 1.7 times EBITDA [33] Q&A Session Summary Question: Update on talc litigation and reserve estimates - Management noted progress in mediation and confidence in the estimated costs for the trust and ongoing litigation [40][41] Question: Expectations for organic top-line growth amid uncertainty - Management indicated that while the first quarter was slow, there is a base demand that could lead to low single-digit growth if order patterns normalize [43][46] Question: Cadence of cost savings and margin improvement - Cost savings are expected to ramp up meaningfully in the third quarter, contributing to margin improvement [50][51] Question: Impact of tariffs on magnesium oxide and inventory strategies - Management confirmed that magnesium oxide is subject to tariffs, but they have built inventories to mitigate potential impacts [66][68] Question: Volatility in Household and Personal Care business - Management acknowledged recent volatility but expressed confidence in the long-term growth potential of the category [70][74] Question: Customer behavior regarding R&D and product development amid tariffs - Management reported that customer interest in new product developments remains strong despite tariff uncertainties [80][82] Question: Update on PFAS remediation projects and pilot plants - The pipeline for PFAS remediation remains strong, with ongoing trials and significant project wins [87][90]

Financial Data and Key Metrics Changes - First quarter sales were $492 million, an 8% decrease year-over-year primarily due to lower volumes and unfavorable mix, along with unfavorable foreign exchange [20][22] - Operating income was $63 million, with an operating margin of 12.9%, impacted by temporary cost increases in the Consumer and Specialty segment [22][23] - Earnings per share excluding special items was $1.14, with several special items recorded including a $215 million provision for BMI Old Co [23][24] Business Line Data and Key Metrics Changes - In the Consumer and Specialties segment, first quarter sales were $268 million, adversely affected by changes in customer order patterns and cautious inventory management [24][25] - The Engineered Solutions segment reported first quarter sales of $224 million, with stable market conditions in North America but softer demand in Europe [26][27] - Positive trends were noted in Household and Personal Care, with sales up 6% from the prior year in edible oil and renewable fuel purification [25][28] Market Data and Key Metrics Changes - The North American foundry market remained stable, while the China foundry business experienced strong growth due to higher export production [15][27] - Environmental and Infrastructure projects showed stability, with a 19% increase in sales for Environmental Lighting applications [28] - The overall market remains uncertain, with expectations of a significant downturn in the U.S. economy potentially affecting future performance [16][18] Company Strategy and Development Direction - The company aims to penetrate core markets further, focusing on higher-margin consumer-oriented products and driving innovation [17][18] - Strategies are aligned with secular trends, targeting efficiency and cost savings for customers, particularly in water filtration and renewable fuels [17][18] - The company is prepared to make operational adjustments and has a strong foundation to navigate uncertainties ahead [18] Management's Comments on Operating Environment and Future Outlook - Management acknowledged a challenging first quarter but noted an uptick in sales in March, indicating potential recovery [6][11] - The forecast for the second quarter encompasses a range of outcomes based on customer reactions to the economic landscape [11][34] - Confidence remains in long-term growth targets despite current market uncertainties, with a focus on maintaining a strong financial position [17][18] Other Important Information - The company identified $10 million in cost savings targeted at efficiency improvements and general reductions in overhead [8][9] - A reserve of $215 million was established for estimated costs related to talc claims and ongoing litigation [9][23] - The company has nearly $700 million in liquidity and a net leverage ratio of 1.7 times EBITDA, indicating a solid balance sheet [33] Q&A Session Summary Question: Update on talc litigation and reserve estimates - Management reported progress in mediation and confidence in the estimates for funding the trust and ongoing litigation costs [40][41] Question: Expectations for organic top-line growth amid macro impacts - Management indicated uncertainty in growth projections but noted a stable base demand and potential for low single-digit growth [43][46] Question: Cadence of cost savings and margin improvement - Cost savings are expected to ramp up meaningfully in the third quarter, contributing to margin improvement [50][51] Question: Operating margin outlook for 2025 - Management expects operating margins to potentially improve in the second half of the year, with a target of 15% [62][63] Question: Impact of tariffs on magnesium oxide sourcing - Management confirmed that magnesium oxide is sourced from multiple locations, including China, and inventory levels are being built up in anticipation of tariff impacts [66][68] Question: Volatility in Household and Personal Care business - Management acknowledged recent volatility but expressed confidence in the long-term growth potential of the category [70][74] Question: Customer attitudes towards R&D and product development amid tariffs - Management reported no significant changes in customer engagement regarding new product developments, indicating continued interest in high-value products [80][82] Question: Update on PFAS remediation projects - Management highlighted a strong pipeline for PFAS remediation projects, with ongoing trials and significant contract wins [90][92]