Unassociated Document

For further information, contact:		Gary L. Castagna
		Senior Vice President & CFO
		847.394.8730

AMCOL INTERNATIONAL (NYSE:ACO) REPORTS FOURTH-QUARTER

AND 2007 YEAR-END RESULTS

ARLINGTON HEIGHTS, IL, JANUARY 18, 2008—AMCOL International Corporation (NYSE:ACO) today reported 2007 fourth-quarter net income of $10.8 million, or $0.35 per diluted share, compared with $12.0 million, or $0.39 per diluted share, in the same prior-year period. A higher effective tax rate in the 2007 quarter caused a $0.08 per diluted share decrease in net income from the prior-year period.

Net sales from continuing operations rose 24.8 percent to $194.6 million for the quarter ended December 31, 2007, compared with $155.9 million for the 2006 period. Acquisitions and favorable foreign currency translation represented approximately $12.6 million and $4.8 million, respectively, of the fourth-quarter sales growth.

Operating profit improved by 9.8 percent over the 2006 quarterly period, to $15.5 million. Current-period operating profit includes earnings from acquisitions and favorable foreign currency translation of $1.4 million and $0.6 million, respectively.

“Overall, this quarter reflected very strong sales growth, particularly in Environmental and Oilfield Services,” said Larry Washow, AMCOL president and CEO. “We also saw improved operating profit, although not at the same level as our sales growth. The quarter also showed good operating cash flow and working capital management.”

The Company’s Minerals segment margins remained a challenge in the fourth quarter, Washow says, but the Environmental and Oilfield Services segments performed very well.

“Costs were higher in the Minerals business, which impacted gross margin,” he said. “We also had higher overhead, primarily related to acquisitions and new operations, with lower operating profit quarter over quarter as a result. We expect improvement in several areas in coming months.

“On the bright side, Environmental had a very good quarter. The fourth quarter is usually softer for that business, but this one was very strong around the world. Oilfield Services was very strong, as well, with significant sales and operating profit growth.”

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AMCOL Q4 2007 EARNINGS

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Washow notes that AMCOL corporate overhead also increased during the fourth quarter, due to a number of factors such as consulting and employee benefit related costs.

“Some of these expenditures don’t directly relate to our operations today, but they’ll be beneficial to the company overall,” he said. “We consistently evaluate and implement improvements that we believe will help us expand our market share worldwide, improve efficiency and increase shareholder returns.”

Net income for the twelve-month period ended December 31, 2007, was $56.7 million, or $1.83 per diluted share compared with $50.2 million, or $1.62 per diluted share in the prior-year period. Income from continuing operations was $57.0 million, or $1.84 per diluted share, compared with $49.7 million, or $1.60 per diluted share in the prior-year period. Earnings in both reporting periods benefited from non-recurring events. A gain on the sale of vacant land in the U.S. added $0.06 per diluted share to the 2007 period. Income from continuing operations in the 2006 period included a $0.09 per diluted share net benefit resulting from income tax refunds. Discontinued operations accounted for a loss of $0.01 per diluted share in the 2007 period compared with a gain of $0.02 per diluted share in the 2006 period.

Net sales from continuing operations for the twelve-month period ended December 31, 2007 rose 21.7 percent to $744.3 million, compared with $611.6 million for the 2006 period. Acquisitions and favorable foreign currency translation represented approximately $38.5 million and $18.5 million, respectively, of the sales growth. Operating profit improved by 31.3 percent over the 2006 period to $75.3 million. Current-period operating profit includes earnings from acquisitions and favorable foreign currency translation of $6.3 million and $2.3 million, respectively.

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 in the Financial Overview.

FINANCIAL OVERVIEW

Fourth Quarter Statement of Operations Highlights

Net sales: The following table details the consolidated sales growth components over the 2006 fourth quarter:

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AMCOL Q4 2007 EARNINGS

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	Base Business			Acquisitions			Foreign Exchange			Total
Minerals		4.0	%		4.6	%		1.0	%		9.6	%
Environmental		3.9	%		1.7	%		1.9	%		7.5	%
Oilfield Services		4.4	%		1.8	%		0.1	%		6.3	%
Transportation		1.4	%		-			-			1.4	%
Total		13.7	%		8.1	%		3.0	%		24.8	%
*% of Growth*		*54.9*	%		*32.6*	%		*12.5*	%		*100.0*	%

Minerals - Improved metalcasting shipments in the Asia-Pacific region were the largest contributor to base business growth. Additional contributors to base business growth were the pet products and specialty materials product lines. Freight revenues, which were primarily associated with pet products, also increased sales in the period. Stronger European and Asian currencies led to the growth from foreign exchange.

Environmental - Growth in Europe, in particular from the Poland-based operations, and contracting services (based in the U.S.) were the primary contributors to base business growth. Stronger European currencies accounted for foreign exchange growth.

Oilfield Services - Base business growth was led by increased filtration and pipeline service levels in the Gulf of Mexico. West Africa operations also generated improved revenues over the prior-year quarter.

Gross profit: Sales growth, principally generated by the Environmental and Oilfield Services segments, boosted gross profit by 17.0 percent over the 2006 quarter. Gross margin for the quarter declined to 25.1 percent compared with 26.8 percent in the prior-year quarter.

The Minerals segment suffered a 260 basis point decline in gross margin compared with the 2006 quarter. Higher mining and operating costs at the domestic manufacturing plants primarily caused the decline. Additionally, gross margin was impacted by unfavorable product mix in Europe and higher freight revenues, which do not generate any profit.

A change in product mix at the European business unit and higher relative contribution from contracting services caused the 260 basis point decline in the Environmental segment gross margin compared with the prior-year period. The European businesses had a higher level of service revenues for product installation. These services typically have lower gross margins than actual product sales.

Gross margin for the Oilfield Services segment suffered a 70 basis point decline in the current-year quarter. Again, business mix was the cause.

General, selling and administrative expenses (GS&A): The $5.7 million, or 20.6 percent, increase over the 2006 fourth quarter was attributed to all reporting segments except for Transportation. In aggregate, acquired businesses, including amortization of intangible assets, accounted for approximately $2.0 million of the increase in the 2007 fourth quarter.

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AMCOL Q4 2007 EARNINGS

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Within the Minerals segment, acquired business expenses were approximately $0.9 million of the increase over the prior-year quarter. Base business GS&A grew in the Asia Pacific region due to higher sales and marketing expenses.

For the Environmental segment, GS&A from acquired businesses accounted for approximately $0.9 million of the increase over the prior-year quarter. Base business GS&A increased primarily due to higher marketing and sales expenses at the European operations.

The Oilfield Services segment incurred approximately $0.2 million of GS&A from acquired businesses. Base business expenses increased due to higher personnel costs.

Corporate segment GS&A increased due to a group of expenses including employee benefits and professional and consulting service expenses.

Operating profit: The 9.8 percent improvement in operating profit over the 2006 fourth quarter was primarily related to sales and gross profit growth. Operating margin for the quarter was 8.0 percent compared with 9.0 percent in the prior-year period. The 100 basis point decline was principally due to the lower gross margin reported in the current period.

Interest expense: Net interest expense increased by approximately $1.3 million over the prior-year quarter due to higher average debt levels and increased interest rates.

Income taxes: The effective tax rate was 34.3 percent for the fourth quarter of 2007 compared with 14.8 percent for the same period in 2006. The current-year quarter was negatively impacted primarily by changes in geographical earnings distribution estimates. Our effective tax rate for international businesses is much lower than the U.S. Higher than forecasted earnings growth from U.S.-based operations - primarily in the Oilfield Services segment - required us to increase estimated income tax liabilities for 2007. Since this is the last quarter of the year, the change in estimate increased the effective rate by a large amount. Favorable tax reductions in the 2006 period due to changes in deduction and credit estimates caused the low rate in 2006.

Income from affiliates and joint ventures: These investments contributed approximately $0.07 and $0.03 per diluted share in the 2007 and 2006 fourth quarter periods, respectively. Our investments in Ashapura Minechem Limited and Ashapura Volclay Limited, both based in India, have continued to increase their respective contributions to earnings. Ashapura Minechem has been growing principally due to its bauxite business, a large portion of which is exported to alumina refineries in China. Alumina is a key raw material used in the production of aluminum.

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AMCOL Q4 2007 EARNINGS

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Share count: The weighted average number of common and common equivalent shares was 31.0 million for both reporting periods.

Key Financial Position and Cash Flow Highlights

Long-term debt increased to $164.2 million at December 31, 2007 compared with $112.4 million at December 31, 2006. The increase was primarily due to funding acquisitions, greater working capital levels and capital expenditures. Debt represented approximately 31.8 percent of total capitalization at December 31, 2007, compared with 27.6 percent at December 31, 2006. Cash and cash equivalents were $25.3 million at December 31, 2007 compared with $17.8 million at December 31, 2006.

Working capital increased to $204.0 million at December 31, 2007 from $173.3 million at December 31, 2006. The current ratio was 3.0-to-1 and 3.2-to-1 at December 31, 2007, and December 31, 2006, respectively.

Cash flow provided by operating activities was $66.9 million year-to-date as of December 31, 2007 compared with $46.7 million in the twelve-month period in 2006. In addition to the growth in net income, the 2007 period was aided by higher non-cash charges and lower relative growth in working capital.

Investing activities in the 2007 twelve-month period were primarily driven by three acquisitions which, in aggregate, accounted for $40.1 million. Capital expenditures amounted to $53.1 million year-to-date as of December 31, 2007, compared with $42.1 million for the same period in 2006. The 2007 amount includes expenditures to construct new corporate offices that we intend to refinance through a sale-leaseback transaction in the first quarter of 2008.

Approximately $6.4 million was expended on share repurchases year-to-date, as of December 31, 2007. A total of 260,000 shares were repurchased, which equates to $24.64 per share. Dividends year-to-date through December 31, 2007, increased by 22.7 percent over the prior-year period to $18.0 million.

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.

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AMCOL Q4 2007 EARNINGS

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AMCOL International, headquartered in Arlington Heights, 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 Co., 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 fourth quarter conference call will be available live today at 11 a.m. EDT on the AMCOL website.

AMCOL Q4 2007 EARNINGS

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AMCOL INTERNATIONAL CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited)

(In thousands, except per share data)

Twelve Months Ended

Three Months Ended

December 31,

2007

2006

2007

2006

Continuing Operations:

Net sales

744,334

611,556

194,554

155,919

Cost of sales

547,820

452,090

145,630

114,095

Gross profit

196,514

159,466

48,924

41,824

General, selling and administrative expenses

121,187

102,078

33,431

27,719

Operating profit

75,327

57,388

15,493

14,105

Other income (expense):

Interest expense, net

(8,915

)

(2,951

)

(2,409

)

(1,116

)

Other, net

(1,139

)

231

(139

)

(28

)

(10,054

)

(2,720

)

(2,548

)

(1,144

)

Income before income taxes and income from affiliates and joint ventures

65,273

54,668

12,945

12,961

Income tax expense (benefit)

16,646

10,425

4,441

1,920

Income before income from affiliates and joint ventures

48,627

44,243

8,504

11,041

Income from affiliates and joint ventures

8,394

5,420

2,276

958

Income from continuing operations

57,021

49,663

10,780

11,999

(Loss) Income from discontinued operations

(286

)

585

Net income

56,735

50,248

10,780

11,999

Weighted average common shares outstanding

30,165

30,054

30,220

30,071

Weighted average common and common equivalent shares outstanding

30,959

31,026

31,030

30,973

Basic earnings per share:

Continuing operations

1.89

1.65

0.36

0.40

Discontinued operations

(0.01

)

0.02

Basic earnings per share

1.88

1.67

0.36

0.40

Diluted earnings per share:

Continuing operations

1.84

1.60

0.35

0.39

Discontinued operations

(0.01

)

0.02

Diluted earnings per share

1.83

1.62

0.35

0.39

Dividends declared per share

0.60

0.49

0.16

0.14

AMCOL Q4 2007 EARNINGS

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AMCOL INTERNATIONAL CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands)

	December 31,		December 31,
ASSETS	2007		2006
	(unaudited)		*
Current assets:
Cash and equivalents	$	25,282	$	17,805
Accounts receivable, net		166,835		133,432
Inventories		91,367		84,612
Prepaid expenses		13,529		10,142
Deferred income taxes		5,829		4,648
Income tax receivable		2,768		-
Other		475		1,045
Total current assets		306,085		251,684

Investments in and advances to affiliates and joint ventures		49,309		31,049

Property, plant, equipment, mineral rights and reserves:
Land and mineral rights		21,394		17,428
Depreciable assets		352,100		305,013
		373,494		322,441
Less: accumulated depreciation		196,904		181,669
		176,590		140,772
Other assets:
Goodwill		59,840		40,341
Intangible assets, net		41,257		25,611
Deferred income taxes		3,680		6,643
Other assets		15,007		15,124
		119,784		87,719
	$	651,768	$	511,224

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:
Accounts payable	$	44,425	$	26,107
Accrued income taxes		-		4,844
Accrued liabilities		57,682		47,432
Total current liabilities		102,107		78,383
Long-term debt		164,232		112,448
Minority interests in subsidiaries		327		276
Pension liabilities		9,698		13,209
Other liabilities		22,399		12,090
		32,424		25,575
Stockholders’ equity:
Common stock		320		320
Additional paid in capital		81,599		76,686
Retained earnings		258,164		219,690
Accumulated other comprehensive income		33,930		16,658
		374,013		313,354
Less:
Treasury stock		21,008		18,536
		353,005		294,818
	$	651,768	$	511,224

* Condensed from audited financial statements.

AMCOL Q4 2007 EARNINGS

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AMCOL INTERNATIONAL CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)

(In thousands)

	Twelve Months Ended
	December 31,
	2007			2006
Cash flow from operating activities:
Net income	$	56,735		$	50,248
Adjustments to reconcile net income to net cash
provided by (used in) operating activities:
Depreciation, depletion, and amortization		29,219			20,483
Changes in assets and liabilities, net of effects of acquisitions:
Decrease (Increase) in current assets		(40,675	)		(32,887	)
Decrease (Increase) in noncurrent assets		(1,913	)		(2,758	)
Increase (decrease) in current liabilities		21,021			12,548
Increase (decrease) in noncurrent liabilities		8,192			3,924
Other		(6,398	)		(4,870	)
Net cash provided by (used in) operating activities		66,181			46,688

Cash flow from investing activities:
Capital expenditures		(46,004	)		(42,099	)
Capital expenditures - corporate building		(7,050	)		-
Acquisitions, net of cash		(45,191	)		(63,248	)
Investments in and advances to affiliates and joint ventures		(6,636	)		(5,645	)
Proceeds from sale of land and depreciable assets		6,896			3,155
Investments in restricted cash		2,504			(3,706	)
Other		(386	)		654
Net cash provided by (used in) investing activities		(95,867	)		(110,889	)
Cash flow from financing activities:
Net change in outstanding debt		50,348			75,476
Proceeds from sales of treasury stock		3,336			2,577
Purchases of treasury stock		(6,622	)		(5,554	)
Dividends		(18,008	)		(14,678	)
Excess tax benefits from stock-based compensation		2,030			1,955
Other		255			-
Net cash provided by (used in) financing activities		31,339			59,776
Effect of foreign currency rate changes on cash		5,824			6,233
Net increase (decrease) in cash and cash equivalents		7,477			1,808
Cash and cash equivalents at beginning of period		17,805			15,997
Cash and cash equivalents at end of period	$	25,282		$	17,805

AMCOL Q4 2007 EARNINGS

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AMCOL INTERNATIONAL CORPORATION

SEGMENT RESULTS (unaudited)

Twelve Months Ended December 31,

Minerals

2007

2006

2007 vs 2006

(Dollars in Thousands)

Net sales

356,670

100.0

316,751

100.0

39,919

12.6

Cost of sales

290,371

81.4

255,064

80.5

35,307

13.8

Gross profit

66,299

18.6

61,687

19.5

4,612

7.5

General, selling and

administrative expenses

32,194

9.0

27,476

8.7

4,718

17.2

Operating profit

34,105

9.6

34,211

10.8

(106

)

-0.3

Twelve Months Ended December 31,

Environmental

2007

2006

2007 vs 2006

(Dollars in Thousands)

Net sales

252,776

100.0

203,128

100.0

49,648

24.4

Cost of sales

166,717

66.0

133,414

65.7

33,303

25.0

Gross profit

86,059

34.0

69,714

34.3

16,345

23.4

General, selling and

administrative expenses

47,665

18.9

42,963

21.2

4,702

10.9

Operating profit

38,394

15.1

26,751

13.1

11,643

43.5

Twelve Months Ended December 31,

Oilfield Services

2007

2006

2007 vs 2006

(Dollars in Thousands)

Net sales

100,572

100.0

61,928

100.0

38,644

62.4

Cost of sales

62,178

61.8

39,933

64.5

22,245

55.7

Gross profit

38,394

38.2

21,995

35.5

16,399

74.6

General, selling and

administrative expenses

19,177

19.1

10,934

17.7

8,243

75.4

Operating profit

19,217

19.1

11,061

17.8

8,156

73.7

Twelve Months Ended December 31,

Transportation

2007

2006

2007 vs 2006

(Dollars in Thousands)

Net sales

52,409

100.0

50,228

100.0

2,181

4.3

Cost of sales

46,647

89.0

44,158

87.9

2,489

5.6

Gross profit

5,762

11.0

6,070

12.1

(308

)

-5.1

General, selling and

administrative expenses

2,994

5.7

3,198

6.4

(204

)

-6.4

Operating profit

2,768

5.3

2,872

5.7

(104

)

-3.6

Twelve Months Ended December 31,

Corporate

2007

2006

2007 vs 2006

(Dollars in Thousands)

Intersegment shipping sales

(18,093

)

(20,479

)

Intersegment shipping costs

(18,093

)

(20,479

)

Gross profit

Corporate general, selling

and administrative expenses

19,157

17,507

1,650

9.4

Operating loss

19,157

17,507

1,650

9.4

AMCOL Q4 2007 EARNINGS

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AMCOL INTERNATIONAL CORPORATION

SEGMENT RESULTS (unaudited)

Three Months Ended December 31,

Minerals

2007

2006

2007 vs 2006

(Dollars in Thousands)

Net sales

94,238

100.0

79,288

100.0

14,950

18.9

Cost of sales

78,366

83.2

63,912

80.6

14,454

22.6

Gross profit

15,872

16.8

15,376

19.4

496

3.2

General, selling and

administrative expenses

8,473

9.0

7,337

9.3

1,136

15.5

Operating profit

7,399

7.8

8,039

10.1

(640

)

-8.0

Three Months Ended December 31,

Environmental

2007

2006

2007 vs 2006

(Dollars in Thousands)

Net sales

62,849

100.0

51,132

100.0

11,717

22.9

Cost of sales

42,194

67.1

33,480

65.5

8,714

26.0

Gross profit

20,655

32.9

17,652

34.5

3,003

17.0

General, selling and

administrative expenses

13,277

21.1

12,176

23.8

1,101

9.0

Operating profit

7,378

11.8

5,476

10.7

1,902

34.7

Three Months Ended December 31,

Oilfield Services

2007

2006

2007 vs 2006

(Dollars in Thousands)

Net sales

28,435

100.0

18,658

100.0

9,777

52.4

Cost of sales

17,545

61.7

11,375

61.0

6,170

54.2

Gross profit

10,890

38.3

7,283

39.0

3,607

49.5

General, selling and

administrative expenses

5,516

19.4

3,459

18.5

2,057

59.5

Operating profit

5,374

18.9

3,824

20.5

1,550

40.5

Three Months Ended December 31,

Transportation

2007

2006

2007 vs 2006

(Dollars in Thousands)

Net sales

13,755

100.0

11,609

100.0

2,146

18.5

Cost of sales

12,248

89.0

10,096

87.0

2,152

21.3

Gross profit

1,507

11.0

1,513

13.0

)

-0.4

General, selling and

administrative expenses

741

5.4

831

7.2

(90

)

-10.8

Operating profit

766

5.6

682

5.9

12.3

Three Months Ended December 31,

Corporate

2007

2006

2007 vs 2006

(Dollars in Thousands)

Intersegment shipping sales

(4,723

)

(4,768

)

Intersegment shipping costs

(4,723

)

(4,768

)

Gross profit

Corporate general, selling

and administrative expenses

5,424

3,916

1,508

38.5

Operating loss

5,424

3,916

1,508

38.5