10-Q

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

(x) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended                                                  September 30, 2011                                                  

                                                             or

(    ) TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

For the transition period from                                        to                                                                                       

Commission file number                                          1-14447                                                                                      

AMCOL INTERNATIONAL CORPORATION

(Exact name of registrant as specified in its charter)

Delaware	36-0724340
(State or other jurisdiction of incorporation or organization)	(IRS Employer Identification No.)
2870 Forbs Avenue, Hoffman Estates, IL	60192
(Address of principal executive offices)	(Zip Code)

(847) 851-1500

(Registrant’s telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  x    No  ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    Yes  x    No  ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company (as defined in Rule 12b-2 of the Exchange Act).

Large accelerated filer  ¨	Accelerated filer  x	Non-accelerated filer  ¨
Smaller reporting company  ¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes  ¨    No  x

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.

Class	Outstanding at October 31, 2011
(Common stock, $.01 par value)	31,670,314 Shares

1

AMCOL INTERNATIONAL CORPORATION

INDEX

		Page No.
Part I - Financial Information
Item 1:	Financial Statements Condensed Consolidated Balance Sheets – September 30, 2011 and December 31, 2010		3
	Condensed Consolidated Statements of Operations – three and nine months ended September 30, 2011 and 2010		5
	Condensed Consolidated Statements of Comprehensive Income (Loss) – three and nine months ended September 30, 2011 and 2010		6
	Condensed Consolidated Statements of Changes in Equity – nine months ended September 30, 2011 and 2010		7
	Condensed Consolidated Statements of Cash Flows – nine months ended September 30, 2011 and 2010		8
	Notes to Condensed Consolidated Financial Statements		9
Item 2:	Management’s Discussion and Analysis of Financial Condition and Results of Operations		19
Item 3:	Quantitative and Qualitative Disclosures About Market Risk		37
Item 4:	Controls and Procedures		38
Part II - Other Information
Item 5:	Other Information		38
Item 6:	Exhibits		40

2

AMCOL INTERNATIONAL CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands)

Item 1: Financial Statements

ASSETS	September 30, 2011 (unaudited)		December 31, 2010 *
Current assets:
Cash and cash equivalents	$	9,345	$	27,262
Accounts receivable, net		215,166		193,968
Inventories		133,960		107,515
Prepaid expenses		17,538		12,581
Deferred income taxes		4,420		5,553
Income tax receivable		16,356		8,474
Other		9,683		6,211
Total current assets		406,468		361,564
Noncurrent assets:
Property, plant, equipment, and mineral rights and reserves:
Land		14,191		11,591
Mineral rights		43,096		51,435
Depreciable assets		481,120		454,351
		538,407		517,377
Less: accumulated depreciation and depletion		278,887		256,889
		259,520		260,488
Goodwill		70,174		70,909
Intangible assets, net		37,903		42,590
Investment in and advances to affiliates and joint ventures		24,516		19,056
Available-for-sale securities		4,956		14,168
Deferred income taxes		8,817		7,570
Other assets		21,326		22,748
Total noncurrent assets		427,212		437,529
Total Assets	$	833,680	$	799,093

Continued…

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AMCOL INTERNATIONAL CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands)

LIABILITIES AND SHAREHOLDERS’ EQUITY	September 30, 2011 (unaudited)			December 31, 2010 *
Current liabilities:
Accounts payable	$	53,048		$	53,167
Accrued income taxes		15,201			4,014
Accrued liabilities		61,115			55,294
Total current liabilities		129,364			112,475
Noncurrent liabilities:
Long-term debt		250,394			236,171
Pension liabilities		21,020			21,338
Other long-term liabilities		28,546			28,673
Total noncurrent liabilities		299,960			286,182
Shareholders’ Equity:
Common stock		320			320
Additional paid in capital		92,809			95,074
Retained earnings		311,553			283,189
Accumulated other comprehensive income (loss)		(457	)		28,936
Less: Treasury stock		(4,125	)		(8,945	)
Total AMCOL shareholders’ equity		400,100			398,574
Noncontrolling interest		4,256			1,862
Total equity		404,356			400,436
Total Liabilities and Shareholders’ Equity	$	833,680		$	799,093

*Condensed from audited financial statements.

  The accompanying notes are an integral part of these condensed consolidated financial statements.

4

AMCOL INTERNATIONAL CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

(In thousands, except per share amounts)

	Nine Months Ended September 30,						Three Months Ended September 30,
	2011			2010			2011			2010
Continuing Operations
Net sales	$	708,708		$	621,650		$	248,044		$	228,822
Cost of sales		517,891			458,163			177,054			170,546
Gross profit		190,817			163,487			70,990			58,276
General, selling and administrative expenses		123,354			105,769			43,937			35,604
Operating profit		67,463			57,718			27,053			22,672
Other income (expense):
Interest expense, net		(8,308	)		(7,092	)		(2,824	)		(2,542	)
Other, net		83			2,146			(144	)		2,191
		(8,225	)		(4,946	)		(2,968	)		(351	)
Income before income taxes and income (loss) from affiliates and joint ventures		59,238			52,772			24,085			22,321
Income tax expense		16,935			12,877			6,675			5,219
Income before income (loss) from affiliates and joint ventures		42,303			39,895			17,410			17,102
Income (loss) from affiliates and joint ventures		4,076			266			3,080			337
Income (loss) from continuing operations		46,379			40,161			20,490			17,439
Discontinued Operations
Income (loss) on discontinued operations		(916	)		(789	)		(1,021	)		(132	)
Net income (loss)		45,463			39,372			19,469			17,307
Net income (loss) attributable to noncontrolling interests		48			(322	)		44			(110	)
Net income (loss) attributable to AMCOL shareholders	$	45,415		$	39,694		$	19,425		$	17,417
Weighted average common shares outstanding		31,672			31,137			31,800			31,225
Weighted average common and common equivalent shares outstanding		32,128			31,498			32,193			31,565
Earnings per share attributable to Amcol International Corporation shareholders:
Basic earnings (loss) per share:
Continuing operations	$	1.46		$	1.30		$	0.64		$	0.56
Discontinued operations		(0.03	)		(0.03	)		(0.03	)		-
Net income		1.43			1.27			0.61			0.56
Diluted earnings (loss) per share:
Continuing operations	$	1.44		$	1.29		$	0.63		$	0.55
Discontinued operations		(0.03	)		(0.03	)		(0.03	)		-
Net income		1.41			1.26			0.60			0.55
Amounts attributable to Amcol International Corporation shareholders
Income from continuing operations, net of tax	$	46,331		$	40,483		$	20,446		$	17,549
Discontinued operations, net of tax		(916	)		(789	)		(1,021	)		(132	)
Net income		45,415			39,694			19,425			17,417
Dividends declared per share	$	0.54		$	0.54		$	0.18		$	0.18

The accompanying notes are an integral part of these condensed consolidated financial statements.

5

AMCOL INTERNATIONAL CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(Unaudited)

(In thousands)

	Total						AMCOL Shareholders						Noncontrolling Interest
	Nine Months Ended September 30,						Nine Months Ended September 30,						Nine Months Ended September 30,
	2011			2010			2011			2010			2011			2010
Net income (loss)	$	45,463		$	39,372		$	45,415		$	39,694		$	48		$	(322	)
Other comprehensive income (loss):
Foreign currency translation adjustment		(20,274	)		5,606			(19,627	)		5,655			(647	)		(49	)
Unrealized gain (loss) on available-for-sale securities, net of tax		(8,189	)		(4,883	)		(8,189	)		(4,883	)		-			-
Unrealized gain (loss) on interest rate swap agreements, net of tax		(1,652	)		(3,662	)		(1,652	)		(3,662	)		-			-
Pension adjustment, net of tax		75			94			75			94			-			-
Comprehensive income (loss)	$	15,423		$	36,527		$	16,022		$	36,898		$	(599	)	$	(371	)

	Total						AMCOL Shareholders						Noncontrolling Interest
	Three Months Ended September 30,						Three Months Ended September 30,						Three Months Ended September 30,
	2011			2010			2011			2010			2011			2010
Net income (loss)	$	19,469		$	17,307		$	19,425		$	17,417		$	44		$	(110	)
Other comprehensive income (loss):
Foreign currency translation adjustment		(22,630	)		18,508			(21,982	)		18,493			(648	)		15
Unrealized gain (loss) on available-for-sale securities, net of tax		(1,596	)		(4,215	)		(1,596	)		(4,215	)		-			-
Unrealized gain (loss) on interest rate swap agreements, net of tax		(1,302	)		(1,288	)		(1,302	)		(1,288	)		-			-
Pension adjustment, net of tax		25			30			25			30			-			-
Comprehensive income (loss)	$	(6,034	)	$	30,342		$	(5,430	)	$	30,437		$	(604	)	$	(95	)

The accompanying notes are an integral part of these condensed consolidated financial statements.

6

AMCOL INTERNATIONAL CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

(Unaudited)

(In thousands)

				AMCOL Shareholders
	Total Equity			Retained Earnings			Accumulated Other Comprehensive Income (Loss)			Common Stock		Treasury Stock			Paid-in Capital			Noncontrolling Interest
Balance at December 31, 2009	$	379,772		$	275,200		$	32,174		$	320	$	(14,377)		$	84,830		$	1,625
Net income (loss)		39,372			39,694														(322	)
Cash dividends		(16,745	)		(16,745	)
Issuance of treasury shares pursuant to employee stock compensation plans		5,099											3,769			1,330
Tax benefit from employee stock compensation plans		343														343
Vesting of common stock in connection with employee stock compensation plans		2,462														2,462
Purchase of noncontrolling interest		2,701														2,701
Other comprehensive income (loss)		(2,845	)					(2,796	)										(49	)
Balance at September 30, 2010		410,159			298,149			29,378			320		(10,608	)		91,666			1,254
Balance at December 31, 2010	$	400,436		$	283,189		$	28,936		$	320	$	(8,945	)	$	95,074		$	1,862
Net income (loss)		45,463			45,415														48
Cash dividends		(17,051	)		(17,051	)
Issuance of treasury shares pursuant to employee stock compensation plans		6,868											4,820			2,048
Tax benefit from employee stock compensation plans		598														598
Vesting of common stock in connection with employee stock compensation plans		3,681														3,681
Purchase of noncontrolling interest		(5,735	)													(5,189	)		(546	)
Sale of subsidiary shares to noncontrolling interest		-						(1,390	)							(3,403	)		4,793
Deconsolidation of variable interest entity		(1,254	)																(1,254	)
Other comprehensive income (loss)		(28,650	)					(28,003	)										(647	)
Balance at September 30, 2011		404,356			311,553			(457	)		320		(4,125	)		92,809			4,256

The accompanying notes are an integral part of these condensed consolidated financial statements.

7

AMCOL INTERNATIONAL CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

(In thousands)

	Nine Months Ended September 30,
	2011		2010
Cash flow from operating activities:
Net income	$	45,463	$	39,372
Adjustments to reconcile from net income (loss) to net cash provided by (used in) operating activities:
Depreciation, depletion, and amortization		30,945		26,470
Other non-cash charges		4,044		3,174
Changes in assets and liabilities, net of effects of acquisitions:
Decrease (increase) in current assets		(89,320)		(69,385)
Decrease (increase) in noncurrent assets		1,789		(2,298)
Increase (decrease) in current liabilities		24,894		34,832
Increase (decrease) in noncurrent liabilities		(1,170)		2,999
Net cash provided by (used in) operating activities		16,645		35,164
Cash flow from investing activities:
Capital expenditures		(43,824)		(37,944)
Investments in and advances to affiliates and joint ventures		(1,237)		(2,047)
Proceeds from sale of joint ventures		2,023		-
Other		2,118		1,210
Net cash (used in) investing activities		(40,920)		(38,781)
Cash flow from financing activities:
Net change in outstanding debt		14,891		21,004
Purchase of noncontrolling interest		-		(11,873)
Proceeds from sales of treasury stock		7,000		3,252
Dividends		(17,051)		(16,745)
Excess tax benefits from stock-based compensation		669		394
Net cash provided by (used in) financing activities		5,509		(3,968)
Effect of foreign currency rate changes on cash		849		242
Net increase (decrease) in cash and cash equivalents		(17,917)		(7,343)
Cash and cash equivalents at beginning of period		27,262		27,669
Cash and cash equivalents at end of period	$	9,345	$	20,326

The accompanying notes are an integral part of these condensed consolidated financial statements.

8

AMCOL INTERNATIONAL CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

(In thousands)

Note 1:           SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Company Operations

We, AMCOL International Corporation (the “Company”), are a global company focused on long-term profitable growth through the development and application of minerals and technology products and services to various industrial and consumer markets. We operate in five segments: minerals and materials, environmental, oilfield services, transportation and corporate. Our minerals and materials segment mines, processes and distributes minerals and products with similar applications for use in various industrial and consumer markets, including metalcasting, pet care, laundry care, and drilling industries. Additionally, this segment develops and manufactures synthetic materials principally for personal care applications. Our environmental segment manufactures and distributes products and provides related services for use as moisture and vapor barriers in commercial construction, landfills and a variety of other industrial and commercial applications. Our oilfield services segment provides both onshore and offshore water treatment filtration, well testing, pipeline separation, nitrogen, coil tubing and other services to the oil and natural gas industry. Our transportation segment includes both a long-haul trucking business and a freight brokerage business for our domestic subsidiaries as well as third parties. Our corporate segment includes the elimination of intersegment sales as well as certain expenses associated with research and development, management, employee benefits and information technology activities for our Company. Approximately 76% and 100% of the revenue elimination in the nine months ended September 31, 2011 and 2010, respectively, and 74% and 100% of the revenue elimination in the three months ended September 30, 2011 and 2010, respectively, represents elimination of shipping revenues between our transportation segment and its domestic sister companies. The composition of our revenues by segment is as follows:

	Nine  Months Ended September 30,
	2011	2010
Minerals and materials	51%	51%
Environmental	27%	27%
Oilfield services	20%	18%
Transportation	6%	6%
Intersegment sales	-4%	-2%
	100%	100%

Further discussion of segment information is included in Note 4, “Business Segment Information.”

Basis of Presentation

The financial information included herein has been prepared by management, and other than the condensed consolidated balance sheet as of December 31, 2010, is unaudited. The condensed consolidated balance sheet as of December 31, 2010 has been derived from, but does not include all of the disclosures contained in, the audited consolidated financial statements for the year ended December 31, 2010. The information furnished herein includes all adjustments that are, in our opinion, necessary

9

AMCOL INTERNATIONAL CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

(In thousands)

for a fair presentation of our results of operations and cash flows for the interim periods ended September 30, 2011 and 2010, and our financial position as of September 30, 2011, and all such adjustments are of a normal and recurring nature. The accompanying condensed consolidated financial information should be read in conjunction with the consolidated financial statements and related notes included in our Annual Report on Form 10-K for the year ended December 31, 2010.

Certain items in the prior year’s condensed consolidated financial statements contained herein and notes thereto have been reclassified to conform to the condensed consolidated financial statement presentation for the three and nine months ended September 30, 2011. These reclassifications did not have a material impact on our financial statements.

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“US GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results may differ from those estimates.

The results of operations for interim periods are not necessarily indicative of the results to be expected for the full year for a variety of reasons, including the seasonality of both our environmental segment, which varies due to the seasonal nature of the construction industry, and our oilfield services segment, which varies due to seasonal weather patterns in its various markets.

Recently Issued Accounting Pronouncements

Accounting pronouncements that have not yet become effective with respect to our consolidated financial statements are detailed as follows, together with our assessment of the potential impact they may have on our consolidated financial statements.

In September 2011, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2011-08, codified in Accounting Standards Codification (“ASC”) Topic 350 – Intangibles – Goodwill and Other. ASU 2011-08 simplifies how entities test goodwill for impairment and permits an entity to first assess qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount as a basis for determining whether it is necessary to perform the two-step goodwill impairment test described in Topic 350. We do not expect this ASU to have a material impact on our financial statements when we adopt it on January 1, 2012.

In June 2011, the FASB issued ASU 2011-05, codified in ASC Topic 220 – Comprehensive Income. The objective of this ASU is to increase the prominence of items reported in other comprehensive income (“OCI”). This ASU requires presentation of items of net income, items of OCI and total comprehensive income either in one continuous statement or two separate but consecutive statements. It also requires any reclassification adjustments between OCI and net income to be presented separately on the face of the financial statements. We do not expect this ASU to have a material impact on our financial statements when we adopt it on January 1, 2012.

10

AMCOL INTERNATIONAL CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

(In thousands)

In May 2011, the FASB issued ASU 2011-04, codified in ASC Topic 820 – Fair Value Measurements. This ASU includes amendments that clarify the intent about the application of existing fair value measurement requirements. Specifically, the guidance requires additional disclosures for fair value measurements that are based on significant inputs. We do not expect this ASU to have a material impact on our financial statements when we adopt it on January 1, 2012.

Note 2:           EARNINGS PER SHARE

The table below provides further share information used in computing our earnings per share for the periods presented herein. Basic earnings per share was computed by dividing net income attributable to AMCOL shareholders by the weighted average number of common shares outstanding during each period. Diluted earnings per share was computed by dividing net income attributable to AMCOL shareholders by the weighted average common shares outstanding after consideration of the dilutive effect of stock based compensation outstanding during each period.

	Nine Months Ended September 30,				Three Months Ended September 30,
	2011		2010		2011		2010
Weighted average number of common shares outstanding		31,671,781		31,136,740		31,799,536		31,225,430
Dilutive impact of stock based compensation		455,777		361,286		393,922		339,698
Weighted average number of common and common equivalent shares outstanding for the period		32,127,558		31,498,026		32,193,458		31,565,128
Number of common shares outstanding at the end of the period		31,666,904		31,100,692		31,666,904		31,100,692
Weighted average number of anti-dilutive shares excluded from the computation of diluted earnings per share		186,929		570,259		218,800		511,792

Note 3:        ADDITIONAL BALANCE SHEET INFORMATION

Our inventories at September 30, 2011 and December 31, 2010 are comprised of the following components:

	September 30, 2011		December 31, 2010
Crude stockpile inventories	$	41,923	$	35,308
In-process and finished goods inventories		67,463		47,510
Other raw material, container, and supplies inventories		24,574		24,697
	$	133,960	$	107,515

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AMCOL INTERNATIONAL CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

(In thousands)

We mine various minerals using a surface mining process that requires the removal of overburden. In certain areas and under various governmental regulations, we are obligated to restore the land comprising each mining site to its original condition at the completion of the mining activity. We include an estimate of this reclamation liability in our Condensed Consolidated Balance Sheets; it is adjusted to reflect the passage of time and changes in estimated future cash outflows. A reconciliation of the activity within our reclamation liability is as follows:

	Nine Months Ended September 30,
	2011			2010
Balance at beginning of period	$	7,529		$	6,584
Settlement of obligations		(2,769	)		(1,182	)
Liabilities incurred and accretion expense		4,386			1,813
Foreign currency		(345	)		56
Balance at end of period	$	8,801		$	7,271

We own shares of Ashapura Minechem Limited (“Ashapura”), a public company traded on the Bombay Stock Exchange Limited. We include this investment at its fair value within our Condensed Consolidated Balance Sheets with the unrealized gains or losses, resulting from fluctuations in its fair value, as a component of accumulated other comprehensive income within equity. The following table sets forth the gains recorded in accumulated comprehensive income (loss) within equity in our Condensed Consolidated Balance Sheet:

	September 30, 2011		December 31, 2010
Unrealized gain on avaliable-for-sale securities	$	3,657	$	12,869
Tax expense		-		1,022
Unrealized gain on avaliable-for-sale securities, net of tax expense	$	3,657	$	11,847

Note 4:        BUSINESS SEGMENT INFORMATION

As previously mentioned, we operate in five segments. Our segments are fairly diverse with respect to the products and services they offer as well as the customers they serve. Accordingly, we organize our segments based on the products provided and industries they serve. We measure segment performance based on operating profit, which is defined as net sales less cost of sales and general, selling and administrative expenses related to a segment’s operations. The costs deducted to arrive at operating profit do not include several items, such as net interest expense or income taxes. Segment assets are those assets used in the operations of that segment. Corporate assets include assets used in the operation of this segment as well as those used by or shared amongst our segments, including cash and cash equivalents, certain fixed assets, assets associated with certain employee benefit plans, and other miscellaneous assets.

12

AMCOL INTERNATIONAL CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

(In thousands)

The following tables set forth certain financial information by segment:

	Nine Months Ended September  30,				Three Months Ended September  30,
	2011		2010		2011		2010
Net sales:
Minerals and materials	$	360,523	$	314,417	$	123,792	$	110,332
Environmental		193,512		168,242		69,543		67,744
Oilfield services		139,756		111,052		50,175		41,204
Transportation		42,331		39,987		14,877		14,284
Intersegment sales		(27,414)		(12,048)		(10,343)		(4,742)
Total	$	708,708	$	621,650	$	248,044	$	228,822
Operating profit (loss):
Minerals and materials	$	50,980	$	42,973	$	20,110	$	12,341
Environmental		17,849		17,040		7,637		8,701
Oilfield services		14,082		9,860		5,787		4,079
Transportation		1,920		1,964		770		754
Corporate		(17,368)		(14,119)		(7,251)		(3,203)
Total	$	67,463	$	57,718	$	27,053	$	22,672
	As of Sep. 30, 2011		As of Dec. 31, 2010
Assets:
Minerals and materials	$	403,582	$	402,640
Environmental		170,798		160,053
Oilfield services		192,374		173,239
Transportation		3,877		4,071
Corporate		63,049		59,090
Total	$	833,680	$	799,093

13

AMCOL INTERNATIONAL CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

(In thousands)

	Nine Months Ended September 30,					Three Months Ended September 30,
	2011		2010			2011			2010
Depreciation, depletion and amortization:
Minerals and materials	$	15,337	$	12,316		$	5,518		$	4,544
Environmental		4,110		4,017			1,495			1,438
Oilfield services		9,448		8,807			3,326			3,028
Transportation		55		31			21			11
Corporate		1,995		1,299			854			427
Total	$	30,945	$	26,470		$	11,214		$	9,448
Capital expenditures:
Minerals and materials	$	17,770	$	24,367		$	8,715		$	5,297
Environmental		6,427		2,051			4,559			1,096
Oilfield services		17,796		10,264			4,898			5,358
Transportation		198		52			44			14
Corporate		1,633		1,210			808			240
Total	$	43,824	$	37,944		$	19,024		$	12,005
Research and development (income) expense:
Minerals and materials	$	4,653	$	4,331		$	1,513		$	1,572
Environmental		1,627		1,870			577			596
Oilfield services		198		510			(6	)		188
Corporate		122		(11	)		275			(51	)
Total	$	6,600	$	6,700		$	2,359		$	2,305

Note 5:        EMPLOYEE BENEFIT PLANS

Our net periodic benefit cost for our defined benefit pension plan was as follows:

	Nine Months Ended September  30,				Three Months Ended September  30,
	2011		2010		2011		2010
Service cost	$	1,137	$	1,050	$	379	$	350
Interest cost		1,956		1,869		652		623
Expected return on plan assets		(2,144)		(1,962)		(715)		(654)
Amortization of prior service cost		48		48		16		16
Net periodic benefit cost	$	998	$	1,005	$	333	$	335

We expected to contribute $1,500 to our pension plan in 2011, and this was fully contributed in the nine months ended September 30, 2011.

14

AMCOL INTERNATIONAL CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

(In thousands)

Note 6:        INCOME TAXES

Our effective tax rate for the nine months ended September 30, 2011 and 2010 was 28.6% and 24.4%, respectively. For both periods, the rate differs from the U.S. federal statutory rate of 35.0% largely due to depletion deductions, changes in tax reserves, differences in local tax rates on the income from our foreign subsidiaries, and the correction of an error in the nine months ended September 30, 2011, which was not material to our financial statements.

In the normal course of business, we are subject to examination by taxing authorities throughout the world. With few exceptions, we are no longer subject to income tax examinations by tax authorities for years prior to 2004. In general, the United States Internal Revenue Service (“IRS”) has examined our federal income tax returns for all years through 2009.

Note 7:        DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES

As a multinational corporation with operations throughout the world, we are subject to certain market risks. We use a variety of practices to manage these market risks, including, when considered appropriate, derivative financial instruments. We use derivative financial instruments only for risk management and not for trading or speculative purposes.

The following table sets forth the fair values of our derivative instruments and where they are recorded within our Condensed Consolidated Balance Sheet:

Liability Derivatives	Balance Sheet Location	Fair Value as of
		September 30, 2011			December 31, 2010
Derivatives designated as hedging instruments:
Interest rate swaps	Other long-term liabilities	$	(9,271	)	$	(6,666	)

Cash flow hedges

Derivatives in Cash Flow Hedging Relationships	Amount of Gain or (Loss) Recognized in Other Comprehensive Income on Derivatives (Effective Portion)
	Nine Months Ended September 30,						Three Months Ended September 30,
	2011			2010			2011			2010
Interest rate swaps, net of tax	$	(1,652	)	$	(3,662	)	$	(1,302	)	$	(1,288	)

We use interest rate swaps to manage floating interest rate risk on debt securities. Interest rate differentials are paid or received on these arrangements over the life of the agreements. As of September 30, 2011 and 2010, we had interest rate swaps outstanding which effectively hedge the variable interest rate on $30,000 of our senior notes to a fixed rate of 5.6% per annum and $33,000 of our borrowings under our revolving credit agreement to a fixed rate of 3.3% per annum plus credit spread.

15

AMCOL INTERNATIONAL CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

(In thousands)

Other

We are exposed to potential gains or losses from foreign currency fluctuations affecting net investments and earnings denominated in foreign currencies. Our primary U.S. dollar exposures are to fluctuations in the British Pound, Euro, Polish Zloty and South African Rand. We also have significant exposure to fluctuations in exchange rates between the British Pound and the Euro as well as between the Polish Zloty and the Euro. When we believe it appropriate, we enter into foreign exchange derivative contracts to mitigate the risk of fluctuations in these foreign currency exchange rates.

We have not designated our foreign currency derivative contracts for hedge accounting treatment and therefore, changes in fair value of these contracts are recorded in earnings as follows:

Derivatives Not Designated as Hedging Instruments	Location of  Gain or (Loss) Recognized in Income on Derivatives	Amount of Gain or (Loss) Recognized in Income on Derivatives
		Nine Months Ended September 30,						Three Months Ended September 30,
		2011			2010			2011		2010
Foreign currency exchange contracts	Other, net	$	(780	)	$	(347	)	$	544	$	(158	)

We did not have any significant foreign exchange derivative instruments outstanding as of September 30, 2011 or December 31, 2010.

Note 8:         FAIR VALUE MEASUREMENTS

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Our calculation of the fair value of derivative instruments includes several assumptions. The fair value hierarchy prioritizes these input assumptions in the following three broad levels:

Level 1 – Valuation is based on quoted prices (unadjusted) in active markets for identical assets or liabilities we have the ability to access at the measurement date.

Level 2 – Valuation is based on quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active and model based valuations for which all significant inputs are observable in the market.

Level 3 – Valuation is based on model based techniques that use unobservable inputs for the asset or liability. These inputs reflect our own assumption about the assumption market participants would use in pricing the asset or liability.

16

AMCOL INTERNATIONAL CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

(In thousands)

The following tables categorize our fair value instruments, measured on a recurring basis, according to the assumptions used to calculate those values:

				Fair Value Measurements Using
Description	Asset / (Liability) Balance at 9/30/2011			Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)
Interest rate swaps	$	(9,271	)	$	-	$	(9,271	)	$	-
Available-for-sale securities		4,956			4,956		-			-
Deferred compensation plan assets		8,059			-		8,059			-
Supplementary pension plan assets		7,154			-		7,154			-

				Fair Value Measurements Using
Description	Asset / (Liability) Balance at 12/31/2010			Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)
Interest rate swaps	$	(6,666	)	$	-	$	(6,666	)	$	-
Available-for-sale securities		14,168			14,168		-			-
Deferred compensation plan assets		8,358			-		8,358			-
Supplementary pension plan assets		7,676			-		7,676			-

Interest rate swaps are valued using discounted cash flows. The key input used is the LIBOR swap rate, which is observable at commonly quoted intervals for the full term of the swap. Available-for-sale securities are valued using quoted market prices. Deferred compensation and supplemental pension plan assets are valued using quoted prices for similar assets in active markets.

Note 9:        DISCONTINUED OPERATIONS

In September 2011, our environmental segment sold CETCO Contracting Services Company, which comprised our domestic contracting services business. The operations of this business for current and prior periods, including the loss on the sale of $143, have been reclassified and are recorded net of income tax within Income (loss) on discontinued operations within our Condensed Consolidated Statements of Operations.

17

AMCOL INTERNATIONAL CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

(In thousands)

Note 10:        NONCONTROLLING INTEREST

In January 2011, we acquired the remaining noncontrolling interest in Volclay South Africa (Proprietary) Limited, a part of our chromite business, for approximately $5,600.

In February 2011, we sold 26% of our interest in Batlhako Mining Limited (“Batlhako”) to Vengawave (Proprietary) Limited, which is a Black Economic Empowerment enterprise (a “BEE”) in the Republic of South Africa. Batlhako is our subsidiary dedicated strictly to mining chromite ore and selling it to one of our other subsidiaries for further processing and sale to the end customer. South African law requires that we have a BEE as a partner in the mining operations and this transaction was consummated to comply with those regulations.

The following table sets forth the effects of these transactions on equity attributable to AMCOL’s shareholders:

	Nine Months Ended September 30, 2011
Net income attributable to AMCOL shareholders	$	45,415
Transfers from noncontrolling interest:
Decrease in additional paid-in capital for purchase of the remaining noncontrolling interest in South Africa (Proprietary) Limited		(5,189)
Decrease in additional paid-in capital for transfer of 26% interest in Batlhako		(3,403)
Change from net income attributable to AMCOL shareholders and transfers from noncontrolling interest	$	36,823

Note 11:        CONTINGENCIES

We are party to a number of lawsuits arising in the normal course of business. As our businesses continue to grow, especially in our oilfield services segment, we expect these lawsuits and claims to increase. However, we do not believe that any pending litigation will have a material adverse effect on our consolidated financial statements.

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Item 2: Management’s Discussion and Analysis of Financial Condition and Results of Operations

Forward-Looking Statements

From time to time, certain statements we make, including statements in this Management’s Discussion and Analysis of Financial Condition and Results of Operations section, constitute “forward-looking statements” made in reliance upon the safe harbor contained in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements include statements relating to our Company or our operations that are preceded by terms such as “expects,” “believes,” “anticipates,” “intends” and similar expressions, and statements relating to anticipated growth and levels of capital expenditures. Such forward-looking statements are not guarantees of future performance and involve risks and uncertainties. Our actual results, performance or achievements could differ materially from the results, performance or achievements expressed in, or implied by, these forward-looking statements as a result of various factors, including without limitation the following: actual performance in our various markets; conditions in the metalcasting and construction markets; oil and gas prices and conditions in those industries; operating costs; seasonality of our environmental and oilfield services segments; competition and regulation; currency exchange rates and devaluations; delays in development, production and marketing of new products; integration of acquired businesses; conducting and expanding operations in international markets; and other factors set forth from time to time in our reports filed with the Securities and Exchange Commission (SEC). We undertake no duty to update any forward looking statements to actual results or changes in our expectations.

Overview

We are a global company focused on long term profitability growth through the development and application of minerals and technology products and services to various industrial and consumer markets. The majority of our revenue growth has been achieved by sustaining our products’ technological advantages, developing new products and applying them in innovative ways, and bringing additional products and services to markets we already serve. We focus our research and development activities in areas where we can either leverage our current customer relationships and mineral reserves or enhance existing or related products and services.

The principal mineral that we utilize to generate revenue is bentonite. We own or lease bentonite reserves in the U.S., Australia, China and Turkey. Additionally, through our affiliates and joint ventures, we have access to bentonite reserves in Egypt, India, and Mexico. We also market and develop applications for other minerals, including chromite ore from our mine in South Africa.

Bentonite is surface mined when it is commercially feasible to have it shipped to a plant for further processing, including crushing, drying, milling, and packaging. Bentonite deposits have varying physical properties which require us to identify which markets our reserves can serve. Nicknamed the mineral of a thousand uses, bentonite has several unique characteristics including its ability to bind, swell, adsorb, control rheology, soften fabrics, and have its surface modified through chemical and physical reactions. Our research and development activities, including our understanding of bentonite properties, mining methods, processing and application to markets are core components of our longevity and future prospects.

19

We operate in five segments: minerals and materials, environmental, oilfield services, transportation and corporate. Both our minerals and materials and environmental segments operate manufacturing facilities in North America, Europe, and the Asia-Pacific region. Our minerals and materials segment also owns and operates a chromite mine in South Africa. Our oilfield services segment principally operates in North America’s Gulf of Mexico and surrounding states and also has a growing presence in South America, Africa and Asia. Additionally, we have a transportation segment that performs trucking services for our domestic minerals and materials and environmental businesses as well as third parties.

Our customers are engaged in various end-markets and geographic regions. Customers in the minerals and materials segment range from foundries that produce castings for automotive, industrial, and transportation equipment, including heavy-duty trucks and railroad cars, to producers of consumer goods, including cat litter, cosmetics and laundry care. Customers in our environmental segment include construction contractors, engineering contractors and government agencies. The oilfield services segment’s customer base is primarily comprised of oil and natural gas service or exploration companies. A significant portion of our products have been used in the same applications for decades and have experienced minimal technological obsolescence. A majority of our sales are made pursuant to short-term agreements; therefore, terms of sale, such as pricing and volume, can change within our fiscal year.

A majority of our revenues are generated in the Americas, principally North America. Consequently, the state of the U.S. economy, and especially the metalcasting and industrial construction industries, impacts our revenues. Our fastest growing markets are in the Asia-Pacific and European regions.

Sustainable, long-term profitable growth is our primary objective. We employ a number of strategic initiatives to achieve this goal:

• Organic growth: The central component of our growth strategy is expansion of our product lines and market presence. We have a history of commitment to research and development activities directed at bringing innovative products to market. We believe this approach to growth offers the best probability of achieving our long-term goals at the lowest risk.

• Globalization: As we have done for decades, we continue to expand our manufacturing and marketing organizations into emerging geographic markets. We see significant opportunities in the Asia-Pacific and Eastern European regions for expanding our revenues and earnings over the long-term as a number of markets we serve, such as metalcasting and lining technologies, are expected to grow in these areas. We expect to take advantage of these growth areas, either through our wholly-owned subsidiaries or investments in affiliates and joint ventures.

• Mineral development: Bentonite is a component in a majority of the products we supply. Since it is a natural material, we must continually expand our reserve base to maintain a long-term business. Our goal is to add new reserves to replace the bentonite mined each year. Furthermore, we need to assure that new reserves meet the physical property requirements for our diverse product lines and are economical to mine. Our organization is committed to developing its global reserve base to meet these requirements.

20

• Acquisitions: We continually seek to acquire complementary businesses, as appropriate, when we believe those businesses are fairly valued and fit into our growth strategy.

A number of risks will challenge us in meeting these long-term objectives, and there can be no assurance that we will achieve success in implementing any one or more of them. We describe certain risks throughout this report as well as under “Item 1A. Risk Factors” and “Item 7A. Quantitative and Qualitative Disclosure About Market Risk” within our Annual Report on Form 10-K for the year ended December 31, 2010. In general, the significance of these risks has not materially changed since our Annual Report on Form 10-K for the period ended December 31, 2010.

Critical Accounting Policies and Estimates

Management’s Discussion and Analysis of our Financial Condition and Results of Operations describes relevant aspects of our condensed consolidated financial statements, which have been prepared in accordance with accounting principles generally accepted in the United States. We evaluate the accounting policies and estimates used to prepare the financial statements on an ongoing basis. We consider the accounting policies used in preparing our financial statements to be critical accounting policies when they are both important to the portrayal of our financial condition and results of operations, and require us to make estimates, complex judgments, and assumptions, including with respect to events which are inherently uncertain. As a result, actual results could differ from these estimates. For more information on our critical accounting policies, please read our Annual Report on Form 10-K for the year ended December 31, 2010.

Analysis of Results of Operations

Following is a discussion and analysis that describes certain factors that have affected, and may continue to affect, our financial position and operating results. This discussion should be read with the accompanying condensed consolidated financial statements.

The following consolidated income statement review and segment analysis discuss the results for the three and nine month periods ended September 30, 2011 and the comparable results in the prior year. In each section, a discussion of our consolidated results is presented first, followed by a more detailed discussion of performance within our segments.

21

Three months ended September 30, 2011 vs. September 30, 2010

Consolidated Income Statement Review

The table below compares our operating results for the quarters ended September 30, 2011 and 2010.

Consolidated	Three Months Ended September 30,
	2011		2010		2011 vs. 2010
	(Dollars in Thousands, Except Per Share Amounts)
Continuing operations
Net sales	$	248,044	$	228,822		8.4%
Cost of sales		177,054		170,546
Gross profit		70,990		58,276		21.8%
margin %		28.6%		25.5%
General, selling and administrative expenses		43,937		35,604		23.4%
Operating profit		27,053		22,672		19.3%
margin %		10.9%		9.9%
Other income (expense):
Interest expense, net		(2,824)		(2,542)		11.1%
Other, net		(144)		2,191		-106.6%
		(2,968)		(351)
Income before income taxes and income (loss) from affiliates and joint ventures		24,085		22,321
Income tax expense		6,675		5,219		27.9%
effective tax rate		27.7%		23.4%
Income before income (loss) from affiliates and joint ventures		17,410		17,102
Income (loss) from affiliates and joint ventures		3,080		337		813.9%
Income (loss) from continuing operations		20,490		17,439
Discontinued operations
Income (loss) on discontinued operations		(1,021)		(132)		673.5%
Net income (loss)		19,469		17,307
Net income (loss) attributable to noncontrolling interests		44		(110)		-140.0%
Net income (loss) attributable to AMCOL shareholders	$	19,425	$	17,417		11.5%
Earnings per share attributable to AMCOL shareholders
Basic earnings (loss) per share:
Continuing operations	$	0.64	$	0.56		14.3%
Discontinued operations		(0.03)		-		NA
Net income		0.61		0.56		8.9%
Diluted earnings (loss) per share
Continuing operations	$	0.63	$	0.55		14.5%
Discontinued operations		(0.03)		-		NA
Net income	$	0.60	$	0.55		9.1%

22

We measure sales fluctuations by the relevant components: organic, acquisitions, and foreign currency translation. Fluctuation due to foreign currency translation is measured as the change in revenues resulting from differences in currency exchange rates between periods. Fluctuation due to acquisitions is measured as the changes in revenues resulting from acquired businesses within the first year (twelve consecutive months) we own them. Any remaining fluctuation is due to organic components. The following table details the consolidated sales fluctuations by components over the prior year’s comparable period:

	Organic		Acquisitions		Foreign   Exchange		Total
Minerals and materials		5.2%		0.0%		0.7%		5.9%
Environmental		-0.2%		0.0%		1.0%		0.8%
Oilfield services		3.4%		0.0%		0.5%		3.9%
Transportation & intersegment shipping		-2.2%		0.0%		0.0%		-2.2%
Total		6.2%		0.0%		2.2%		8.4%
% of change		73.7%		0.0%		26.3%		100.0%

The following table shows the distribution of sales across our three principal geographic regions (Americas; Europe, Middle East, and Africa (EMEA); and Asia Pacific) and the comparable total from the prior year’s period:

	Americas		EMEA		Asia Pacific		Total
Minerals and materials		29.6%		9.5%		10.2%		49.3%
Environmental		12.5%		13.7%		1.5%		27.7%
Oilfield services		17.3%		1.0%		1.8%		20.1%
Transportation & intersegment shipping		2.9%		0.0%		0.0%		2.9%
Total - current year’s period		62.3%		24.2%		13.5%		100.0%
Total from prior year’s comparable period		62.8%		22.4%		14.8%		100.0%

Net sales:

Approximately 73.7% of our net sales growth was derived organically with the remainder being driven by favorable foreign currency translation. Net sales increased in each of our segments with the majority of the increase occurring in our minerals and materials and oilfield services segments, largely due to growth in our metalcasting markets and coiled tubing services respectively. Growth in our environmental segment within Europe and our South African chromite operations in our minerals and materials segment helped increase sales from the EMEA region as compared to the prior year’s period.

Gross profit:

Overall gross profit increased due to the increase in sales mentioned above. Gross margins increased nicely across our segments, driving a 310 basis point increase in gross margin. Our minerals and materials segment increased its margins by 450 basis points and helped drive the overall increase.

23

Selling, general and administrative expenses (SG&A):

SG&A expenses increased across all segments. While each segment has its individual increases, the largest contributor overall is increased compensation and benefits cost as well as expenses, such as commissions, that generally increase with increased sales and profitability levels.

Operating profit:

Operating profit increased due to the increase in gross profit mentioned earlier, partially offset by the increase in SG&A expenses. Our operating margin increased by 100 basis points as some of the improvement in gross margin was offset by the growth in SG&A expenses.

Other income (expense), net:

Other income (expense), net decreased significantly, and is primarily comprised of gains and losses on foreign currency transactions as well as financial derivatives. We use financial derivatives to reduce the volatility resulting from fluctuations in foreign currency exchange rates on our net monetary assets. Thus, the decrease in Other income (expense), net results from improved management of these exposures.

Income tax expense:

Our income tax expense and effective tax rate increased in the quarter due to differences in discrete items recorded in each of the two quarters. The prior year’s quarterly effective tax rate was unusually low given the amount of favorable, discrete items recorded in that quarter.

Income from affiliates and joint ventures:

Income from affiliates and joint ventures increased $2.7 million due to a $2.1 million gain we recorded on the sale of our Belgian joint venture. In the third quarter of 2011, we also sold our interest in our Cypriot joint venture, whose operations were mainly in Russia, for neither a gain nor a loss; in Q3 2010, our Cypriot joint venture generated losses of $0.4 million.

Discontinued operations:

In September 2011, we sold our equity interest in CETCO Contracting Services Company at an immaterial loss. These operations comprised our domestic contracting services business within our environmental segment. We have presented the results of this operation as discontinued operations in all periods presented within this Form 10-Q.

Diluted earnings per share from continuing operations:

Diluted earnings per share from continuing operations increased in the quarter due to increased net income from continuing operations. Our weighted average shares outstanding increased, thereby causing diluted earnings per share from continuing operations to be $0.02 per share lower than would have otherwise been the case.

24

Quarterly Review of Each Segment’s Results

Following is a review of operating results for each of our five reporting segments:

Minerals and Materials Segment

Minerals and Materials	Three Months Ended September 30,
	2011				2010				2011 vs. 2010
	(Dollars in Thousands)
Net sales	$	123,792	100.0	%	$	110,332	100.0	%	$	13,460	12.2	%
Cost of sales		91,317	73.8	%		86,383	78.3	%
Gross profit		32,475	26.2	%		23,949	21.7	%		8,526	35.6	%
General, selling and administrative expenses		12,365	10.0	%		11,608	10.5	%		757	6.5	%
Operating profit		20,110	16.2	%		12,341	11.2	%		7,769	63.0	%

Minerals and Materials Product Line Sales	Three Months Ended September 30,
	2011		2010		% change
	(Dollars in Thousands)
Metalcasting	$	65,931	$	53,632		22.9	%
Specialty materials		25,533		27,211		-6.2	%
Pet products		14,168		15,848		-10.6	%
Basic minerals		14,487		12,015		20.6	%
Other product lines		3,673		1,626		125.9	%
Total		123,792		110,332		12.2	%

Increased volumes in our domestic businesses, especially in our metalcasting markets, along with increased sales of our new chromite products accounted for the majority of the increase in net sales. Our metalcasting product line, which includes chromite sales to foundry customers, continues to experience an increase in demand due to growth in demand for automobile and heavy equipment castings.

Both gross profit and gross margin increased significantly. Our gross profit results for the third quarter of 2010 included significant expenses in our personal care products group related to operational issues which we have corrected. The absence of such expenses in the third quarter of 2011 accounts for nearly two thirds of the increase in gross margin. The current quarter’s gross profit and gross margin also includes a one-time, $1.5 million improvement from the recovery of certain mining costs in our chromite operations, which accounted for about a quarter of the improvement in gross margin.

SG&A expenses increased due to increased employee levels and employee benefit costs. However, this segment generated operating leverage on its increased sales, thereby increasing operating profit and operating margin.

25

Environmental Segment

Environmental	Three Months Ended September 30,
	2011			2010			2011 vs. 2010
	(Dollars in Thousands)
Net sales	$	69,543	100.0%	$	67,744	100.0%	$	1,799		2.7%
Cost of sales		47,980	69.0%		47,002	69.4%
Gross profit		21,563	31.0%		20,742	30.6%		821		4.0%
General, selling and administrative expenses		13,926	20.0%		12,041	17.8%		1,885		15.7%
Operating profit		7,637	11.0%		8,701	12.8%		(1,064	)	-12.2%

Environmental Product Line Sales	Three Months Ended September 30,
	2011		2010		% change
	(Dollars in Thousands)
Lining technologies	$	29,262	$	33,407		-12.4	%
Building materials		20,653		15,822		30.5	%
Contracting services		11,060		11,519		-4.0	%
Drilling products		8,568		6,996		22.5	%
Total		69,543		67,744		2.7	%

In the third quarter of 2011, we sold our equity interest in CETCO Contracting Services Company at an immaterial loss. These operations comprised our domestic contracting services business within our environmental segment. We have presented the results of this operation as discontinued operations in all periods presented within this Form 10-Q, and thus the results of this operation are excluded from the amounts presented in the two preceding tables.

Favorable foreign exchange rate movements accounted for the increase in revenues in the quarter. Our domestic lining technologies product line experienced a decrease in sales during the quarter largely due to weather related issues, such as the hurricane that occurred on the East coast. Our building materials product line sales increased from new products and competitive offerings.

Gross profits and gross margin increased slightly. However, SG&A expenses increased more rapidly than sales. Approximately 18.2% of the SG&A increase results from foreign currency exchange rate movements. The remaining increase is driven by a large bad debt expense in our European contracting services business related to a customer bankruptcy in the quarter. The growth in SG&A expenses was the primary driver of the decrease in operating profits and operating margin.

26

Oilfield Services Segment

Oilfield Services	Three Months Ended September 30,
	2011			2010			2011 vs. 2010
	(Dollars in Thousands)
Net sales	$	50,175	100.0%	$	41,204	100.0%	$	8,971	21.8%
Cost of sales		34,798	69.4%		29,249	71.0%
Gross profit		15,377	30.6%		11,955	29.0%		3,422	28.6%
General, selling and administrative expenses		9,590	19.1%		7,876	19.1%		1,714	21.8%
Operating profit		5,787	11.5%		4,079	9.9%		1,708	41.9%

The majority of the revenue increase was due to greater demand for our domestic coiled tubing services due to growth in our onshore services in oil and gas bearing shale formations. However, we did see noteworthy increases in sales of our pipeline and well test services, which are benefitting from increased work in the shale regions as well as increased prices for oil. Revenues in our filtration services declined due to the lack of demand resulting from a slow-down in permits being granted for offshore drilling in the Gulf of Mexico.

The fact that revenues increased in some of our more profitable service lines helped increase gross profits and gross margins. SG&A expenses increased due to increased employee compensation benefits, some of which varies with sales levels, and other expenses incurred to support growth and expansion. The changes in operating profits and related margin followed from the changes in gross profits and gross profit margin.

Transportation Segment

Transportation	Three Months Ended September 30,
	2011			2010			2011 vs. 2010
	(Dollars in Thousands)
Net sales	$	14,877	100.0%	$	14,284	100.0%	$	593	4.2%
Cost of sales		13,102	88.1%		12,654	88.6%
Gross profit		1,775	11.9%		1,630	11.4%		145	8.9%
General, selling and administrative expenses		1,005	6.8%		876	6.1%		129	14.7%
Operating profit		770	5.1%		754	5.3%		16	2.1%

Fuel surcharges comprised the increase in revenues. This segment continues to see an increase in services being provided to divisions within our other domestic subsidiaries, principally our metalcasting and pet products divisions; these intercompany revenues are eliminated in the corporate segment.

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Corporate Segment

Corporate	Three Months Ended September 30,
	2011			2010			2011 vs. 2010
	(Dollars in Thousands)
Intersegment sales	$	(10,343	)	$	(4,742	)		(5,601	)
Intersegment cost of sales		(10,143	)		(4,742	)
Gross profit (loss)		(200	)		-			(200	)
General, selling and administrative expenses		7,051			3,203			3,848		120.1	%
Operating loss		(7,251	)		(3,203	)		(4,048	)	126.4	%

Intersegment sales are eliminated in our corporate segment. These are most notably sales between our transportation segment and our minerals and materials and environmental segments as well as sales between our minerals and materials segment to our environmental and oilfield services segments. Eliminations of intersegment sales and cost of sales have increased along with increased growth in each segment.

Corporate SG&A expenses increased due to losses incurred on certain investments to fund long-term employee benefit programs resulting from the fluctuations in the value of the underlying securities, in addition to increases in other employee benefits.

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Nine Months Ended September 30, 2011 vs. September 30, 2010

Consolidated Income Statement Review

The table below compares our operating results for the periods ended September 30, 2011 and 2010.

Consolidated	Nine Months Ended September 30,
	2011		2010		2011 vs. 2010
	(Dollars in Thousands, Except Per Share Amounts)
Continuing operations
Net sales	$	708,708	$	621,650		14.0%
Cost of sales		517,891		458,163
Gross profit		190,817		163,487		16.7%
margin %		26.9%		26.3%
General, selling and administrative expenses		123,354		105,769		16.6%
Operating profit		67,463		57,718		16.9%
margin %		9.5%		9.3%
Other income (expense):
Interest expense, net		(8,308)		(7,092)		17.1%
Other, net		83		2,146		-96.1%
		(8,225)		(4,946)
Income before income taxes and income (loss) from affiliates and joint ventures		59,238		52,772
Income tax expense		16,935		12,877		31.5%
effective tax rate		28.6%		24.4%
Income before income (loss) from affiliates and joint ventures		42,303		39,895
Income (loss) from affiliates and joint ventures		4,076		266		1432.3%
Income (loss) from continuing operations		46,379		40,161
Discontinued operations
Income (loss) on discontinued operations		(916)		(789)		16.1%
Net income (loss)		45,463		39,372
Net income (loss) attributable to noncontrolling interests		48		(322)		-114.9%
Net income (loss) attributable to AMCOL shareholders	$	45,415	$	39,694		14.4%
Earnings per share attributable to AMCOL shareholders
Basic earnings (loss) per share:
Continuing operations	$	1.46	$	1.30		12.3%
Discontinued operations		(0.03)		(0.03)		0.0%
Net income		1.43		1.27		12.6%
Diluted earnings (loss) per share
Continuing operations	$	1.44	$	1.29		11.6%
Discontinued operations		(0.03)		(0.03)		0.0%
Net income	$	1.41	$	1.26		11.9%

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The following table details the consolidated sales fluctuations by components over the prior year’s comparable period:

	Organic		Acquisitions		Foreign Exchange		Total
Minerals and materials		6.4%		0.0%		1.0%		7.4%
Environmental		3.0%		0.1%		1.0%		4.1%
Oilfield services		4.2%		0.0%		0.4%		4.6%
Transportation & intersegment shipping		-2.1%		0.0%		0.0%		-2.1%
Total		11.5%		0.1%		2.4%		14.0%
% of growth		82.1%		0.9%		17.0%		100.0%

The following table shows the distribution of sales across our three principal geographic regions (Americas; Europe, Middle East, and Africa (EMEA); and Asia Pacific) and the comparable total from the prior year’s period:

	Americas		EMEA		Asia Pacific		Total
Minerals and materials		29.9%		9.8%		10.6%		50.3%
Environmental		12.2%		13.2%		1.6%		27.0%
Oilfield services		17.4%		0.9%		1.4%		19.7%
Transportation & intersegment shipping		3.0%		0.0%		0.0%		3.0%
Total - current year’s period		62.5%		23.9%		13.6%		100.0%
Total from prior year’s comparable period		64.1%		21.2%		14.7%		100.0%

Net sales:

Net sales increased largely due to organic growth in all segments with our metalcasting, coil tubing, and building materials businesses generating the most growth. Foreign currency translation accounted for 17.0% of the growth. The increase in revenues in our EMEA region results from growth in our South African chromite operations, which started late in the second quarter of 2010, and growth in our European businesses within our environmental segment.

Gross profit:

Overall gross profit increased due to the increase in sales mentioned above. Gross margin increased as well due to increased profitability in our minerals and materials segment, as discussed later herein.

Selling, general and administrative expenses (SG&A):

Approximately 11.4% of the increase in SG&A expenses results from fluctuations in foreign currency exchange rates. While each segment has its individual increases, the largest contributor is increased compensation and benefits cost as well as expenses, such as commissions, that generally increase with increased sales and profitability levels.

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Operating profit:

Operating profit increased due to the increase in gross profit mentioned earlier, partially offset by the increase in SG&A expenses. As a result, operating margins increased slightly.

Interest expense, net:

Approximately 63% of the increase in interest expense, net results from increased debt levels to fund our cash needs. The remaining increase results from increased interest rates on our variable rate debt.

Other income (expense), net:

Other income (expense), net decreased significantly, and is primarily comprised of gains and losses on foreign currency transactions as well as financial derivatives. We use financial derivatives to reduce the volatility resulting from fluctuations in foreign currency exchange rates on our net monetary assets. Thus, the decrease in Other income (expense), net results from improved management of these exposures.

Income tax expense:

Our income tax expense and effective tax rate increased in the quarter due to differences in discrete items recorded in each of the year to date periods. The prior year’s year to date effective tax rate was unusually low given the amount of favorable, discrete items recorded in the nine months ended September 30, 2010.

Income from affiliates and joint ventures:

Income from affiliates and joint ventures increased $3.8 million due largely to a $2.1 million gain we recorded on the sale of our Belgian joint-venture, which we sold in 2011. Our Japanese joint-venture also improved its earnings $0.4 million in the current period as compared to the prior year’s nine months due to the economic environment there. In the third quarter of 2011, we sold our interest in our Cypriot joint venture, whose operations were mainly in Russia, at an immaterial loss; in the nine months ended September 30, 2011, this joint-venture reduced its losses by $0.6 million as compared to the prior year’s period.

Discontinued operations:

In the third quarter of 2011, we sold our equity interest in CETCO Contracting Services Company at an immaterial loss. These operations comprised our domestic contracting services business within our environmental segment. We have presented the results of this operation as discontinued operations in all periods presented within this Form 10-Q.

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Diluted earnings per share from continuing operations:

Diluted EPS from continuing operations increased in the quarter due to increased net income from continuing operations. Our weighted average shares outstanding increased and depressed diluted earnings per share from continuing operations by $0.03 per share of net income to AMCOL shareholders.

Year-to-Date Review of Each Segment’s Results

Following is a review of operating results for each of our five reporting segments:

Minerals and Materials Segment

Minerals and Materials	Nine Months Ended September 30,
	2011			2010			2011 vs. 2010
	(Dollars in Thousands)
Net sales	$	360,523	100.0%	$	314,417	100.0%	$	46,106	14.7%
Cost of sales		272,598	75.6%		238,918	76.0%
Gross profit		87,925	24.4%		75,499	24.0%		12,426	16.5%
General, selling and administrative expenses		36,945	10.2%		32,526	10.3%		4,419	13.6%
Operating profit		50,980	14.2%		42,973	13.7%		8,007	18.6%

Minerals and Materials Product Line Sales	Nine Months Ended September 30,
	2011		2010		% change
	(Dollars in Thousands)
Metalcasting	$	190,769	$	147,829		29.0%
Specialty materials		78,729		80,074		-1.7%
Pet products		42,237		46,739		-9.6%
Basic minerals		37,527		34,790		7.9%
Other product lines		11,261		4,985		125.9%
Total		360,523		314,417		14.7%

Growth in our metalcasting product sales accounted for 93.1% of the increase in revenues due to increased demand for automobile and heavy equipment castings. Our metalcasting revenues are earned in all our geographic regions, including South Africa where our chromite operations started generating revenues late in the second quarter of 2010. Our Other product lines increased due to increased sales of intercompany and non-core segment products, including some of which are ancillary to our environmental segment.

Gross profits increased due to the increased sales. Gross margin benefitted from the lack of expenses associated with operational issues in our personal care business that occurred in 2010. The non-recurring reduction in mining costs in our chromite business of $1.5 million was offset by increased production costs and lower than expected yields on the ore processed in that facility on a year-to-date basis.

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SG&A expenses increased due to increased employee compensation and benefits expenses in addition to other expenses incurred to support the sales growth, such as advertising, marketing and travel.

Environmental Segment

Environmental	Nine Months Ended September 30,
	2011			2010			2011 vs. 2010
	(Dollars in Thousands)
Net sales	$	193,512	100.0%	$	168,242	100.0%	$	25,270	15.0%
Cost of sales		134,402	69.5%		116,493	69.2%
Gross profit		59,110	30.5%		51,749	30.8%		7,361	14.2%
General, selling and administrative expenses		41,261	21.3%		34,709	20.6%		6,552	18.9%
Operating profit (loss)		17,849	9.2%		17,040	10.2%		809	4.7%

Environmental Product Line Sales	Nine Months Ended September  30,
	2011		2010		% change
	(Dollars in Thousands)
Lining technologies	$	82,987	$	84,994		-2.4%
Building materials		58,868		41,863		40.6%
Contracting services		28,686		23,322		23.0%
Drilling products		22,971		18,063		27.2%
Total		193,512		168,242		15.0%

Net sales increased due to increased demand for our products and services over the prior year period, when the recession was more pronounced in the commercial construction market. Our building materials group has had significant growth due to the introduction of new products and competitive offerings. Our drilling products sales have increased due to efforts to expand these sales throughout our international markets.

Gross profits increased due to the increase in revenues and gross margin has remained roughly the same. SG&A expenses increased significantly, though, due to costs incurred to increase sales activities, such as new offices and salesmen; increased compensation and benefit costs; and a $1.1 million bad debt expense in the third quarter of 2011 resulting from the bankruptcy of a customer in Europe. The increase in SG&A expenses outpaced growth in sales, leading to a decrease in operating profit margins.

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Oilfield Services Segment

Oilfield Services	Nine Months Ended September 30,
	2011			2010			2011 vs. 2010
	(Dollars in Thousands)
Net sales	$	139,756	100.0%	$	111,052	100.0%	$	28,704	25.8%
Cost of sales		100,250	71.7%		79,313	71.4%
Gross profit		39,506	28.3%		31,739	28.6%		7,767	24.5%
General, selling and administrative expenses		25,424	18.2%		21,879	19.7%		3,545	16.2%
Operating profit		14,082	10.1%		9,860	8.9%		4,222	42.8%

Our domestic coil tubing services account for the majority of the increase in revenues due to increased penetration into the oil and gas bearing shale regions in Louisiana and Texas. Our foreign operations remained fairly constant as growth in some countries were offset mainly by the expiration of a large contract in Australia. Increased revenues from pipeline and well testing services more than offset decreased revenues from our filtration services, which continues to suffer from depressed offshore activity resulting from decreased permitting activity in the Gulf of Mexico

Gross profits increased due to the aforementioned increases in sales. Although the composition of revenues changed significantly, the distribution between higher margin and lower margin services remained roughly the same, resulting in a relatively static gross margin.

SG&A expenses increased due to increased compensation and benefit costs as well as increased expenses associated with increased sales levels, such as commissions and travel. Operating profits increased due to the increased gross profit and operating margins benefitted from increased operating leverage.

Transportation Segment

Transportation	Nine Months Ended September 30,
	2011			2010			2011 vs. 2010
	(Dollars in Thousands)
Net sales	$	42,331	100.0%	$	39,987	100.0%	$	2,344	5.9%
Cost of sales		37,513	88.6%		35,487	88.7%
Gross profit		4,818	11.4%		4,500	11.3%		318	7.1%
General, selling and administrative expenses		2,898	6.8%		2,536	6.3%		362	14.3%
Operating profit		1,920	4.6%		1,964	5.0%		(44)	-2.2%

Fuel surcharges comprised the increase in revenues. However, cost pressures have increased, leading to a decrease in operating profit.

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Corporate Segment

Corporate	Nine Months Ended September 30,
	2011		2010		2011 vs. 2010
	(Dollars in Thousands)
Intersegment sales	$	(27,414)	$	(12,048)		(15,366)
Intersegment cost of sales		(26,872)		(12,048)
Gross profit (loss)		(542)		-		(542)
General, selling and administrative expenses		16,826		14,119		2,707	19.2%
Operating loss		(17,368)		(14,119)		(3,249)	23.0%

Intersegment sales are eliminated in our corporate segment. These are most notably sales between our transportation segment and our minerals and materials, and environmental segments as well as sales between our minerals and materials segment to our environmental and oilfield services segments. Eliminations of intersegment sales and cost of sales have increased along with increased growth in each segment.

Corporate SG&A expenses increased due to increased expenses associated with employee benefit programs and professional services fees.

Balance Sheet Review

In the first nine months of 2011, our total assets increased by $34.6 million. We increased our overall investments in working capital, especially inventory and accounts receivable, to support our revenue growth. We also increased our investments in property, plant and equipment, mostly in our oilfield services and minerals and materials segments, to help grow and maintain those businesses. We funded these investments mainly through increased cash utilization, as evidenced by the decrease in our cash balance from the prior year end, and additional borrowings on our revolving debt facility. We believe our future cash needs will be funded through debt rather than continuing to reduce our cash balance.

Our available-for-sale securities reflect the value of our equity ownership in Ashapura Minechem Limited, a company listed on the Bombay stock exchange, and has fluctuated as shares trade on that exchange.

Our accumulated other comprehensive income decreased $29.4 million, of which $19.6 million relates to the revaluation of the net assets of our foreign subsidiaries into our reporting currency, USD, during consolidation. Although all foreign subsidiaries are subject to translation adjustments during consolidation, the exchange rates between the U.S. dollar and the Polish zloty, the South African rand, and the Turkish lira have fluctuated significantly, causing the majority of the decrease. The decrease in the value of our available-for-sale securities accounted for an additional $8.2 million decrease in our accumulated other comprehensive income.

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Liquidity and Capital Resources

Cash flows from operations, an ability to issue new debt instruments, an ability to lease equipment, and borrowings from our revolving credit facility have historically been our sources of funds to provide working capital, make capital expenditures, acquire businesses, repurchase common stock, and pay dividends to shareholders. We believe cash flows from operations and borrowings from our unused and committed credit facility will be adequate to support our current business needs for the foreseeable future. Should the need arise or should we choose to, we may issue additional equity or debt instruments via a shelf registration which became effective with the SEC in January 2010.

We may need additional debt or equity facilities in order to pursue acquisitions, when and if these opportunities become available, and we may or may not be able to obtain such facilities on terms substantially similar to our current facilities as discussed in Item 1A – Risk Factors of our Annual Report on Form 10-K filed for 2010. Terms of any new facilities, especially interest rates or covenants, may be significantly different from those we currently have.

Following is a discussion and analysis of our cash flow activities as presented in the Condensed Consolidated Statement of Cash Flows presented within Part 1, Item 1 of this report.

Cash Flows ($ in millions)	Nine Months Ended September  30,
	2011			2010
Net cash provided by operating activities	$	16.6		$	35.2
Net cash used in investing activities	$	(40.9	)	$	(38.8	)
Net cash provided by (used in) financing activities	$	5.5		$	(4.0	)

Cash flows from operating activities decreased from the prior year period due to the increased working capital levels, especially increases in inventory to support our business growth, including the ramp-up of our chromite operations. Historically, working capital levels increase in the early and middle parts of the year and then decrease later in the year in conjunction with the seasonality of our businesses; we do not see a reason why this trend would not continue.

Capital expenditures for the first nine months of 2011 and 2010 were $43.8 million and $37.9 million, respectively. In each of these periods, the expenditures include $5.9 million and $13.6 million, respectively, of expenditures associated with establishing our South African chromite operations. In the nine months ended September 30, 2011, the majority of our capital expenditures occurred in our oilfield services segment (to increase the size of our equipment fleet) and our minerals and materials segment (mostly for maintenance capital to ensure stability as the business experiences growth). We expect our capital expenditures in our fiscal year for 2011 to exceed the levels experienced in recent years.

In September 2010, we purchased the remaining 47% of the noncontrolling South Africa chrome mine for $11.9 million and reflected this transaction in the cash flows from financing activities in the nine months ended September 2010. Year-to-date dividends were $0.54 per share in both periods.

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Financial Position ($ in millions)	As at
	September 30, 2011		December 31, 2010
Non-cash working capital	$	267.8	$	221.8
Goodwill & intangible assets	$	108.1	$	113.5
Total assets	$	833.7	$	799.1
Long-term debt	$	250.4	$	236.2
Other long-term obligations	$	49.6	$	50.0
Total equity	$	404.4	$	400.4

Non-cash working capital at September 30, 2011 increased $46.0 million as compared to the amount at December 31, 2010 due to increased working capital required to support the growth in the business, especially increased inventory levels as mentioned previously. Given the seasonality of our environmental and oilfield services segments as well as the project nature of some of our services provided in the oilfield services segment, working capital levels increase in the early and middle parts of the year and then decrease later in the year in conjunction with the seasonality of our business; we do not see a reason why this trend would not continue.

Long-term debt increased $14.2 million to $250.4 million since our prior year-end due to increased financing needs for working capital requirements and capital expenditures. Long-term debt relative to total capitalization increased 110 basis points to 38.2%. We have approximately $109.6 million of borrowing capacity available from our revolving credit facility as of September 30, 2011. We are in compliance with the financial covenants related to the revolving credit facility as of the period covered by this report.

Since the mid 1980’s, we have been named as one of a number of defendants in product liability lawsuits relating to the minor free-silica content within our bentonite products used in the metalcasting industry. The plaintiffs in these lawsuits are primarily employees of our former and current customers. We are also party to a number of claims and lawsuits in our other businesses, especially in our oilfield services segment given the growth of our services, related to specialized products and services designed to suit the specific needs of our customers. To date, we have not incurred significant costs in defending these matters. We believe we have adequate insurance coverage and do not believe the litigation will have a material adverse impact on our financial position, liquidity or results of operations.

Contractual Obligations and Off-Balance Sheet Arrangements

Item 7 of our Annual Report on Form 10-K, for the year ended December 31, 2010 discloses our contractual obligations and off-balance sheet arrangements. There were no material changes in our contractual obligations and off-balance sheet arrangements.

Item 3: Quantitative and Qualitative Disclosures About Market Risk

There were no material changes in our market risk from the disclosures made in our Annual Report on Form 10-K for the year ended December 31, 2010 other than those discussed in Part 1, Item 2 of this report.

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Item 4: Controls and Procedures

Evaluation of Disclosure Controls and Procedures

Our management, with the participation of our Chief Executive Officer and Chief Financial Officer, has evaluated the effectiveness of our disclosure controls and procedures, as such term is defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), as of the end of the period covered by this report. Based on that evaluation, they concluded that, as of the end of such period, our disclosure controls and procedures were effective in recording, processing, summarizing, and reporting, on a timely basis, information we are required to disclose in the reports we file or submit under the Exchange Act.

Changes in Internal Control Over Financial Reporting

There were no changes in our internal control over financial reporting that occurred during our most recent fiscal quarter that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

PART II - OTHER INFORMATION

Item 5: Other Information

Dodd-Frank Act Disclosure of Mine Safety and Health Administration Safety Data

We have in place health and safety programs that include extensive employee training, accident prevention, workplace inspection, emergency response, accident investigation, regulatory compliance and program auditing. The objectives of our health and safety programs are to eliminate workplace incidents, comply with all mining-related regulations and improve mine safety.

The operation of our domestic mines is subject to regulation by the federal Mine Safety and Health Administration (“MSHA”) under the Federal Mine Safety and Health Act of 1977 (the “Mine Act”). MSHA inspects our mines on a regular basis and issues various citations and orders when it believes a violation has occurred under the Mine Act. We present information below regarding certain mining safety and health citations which MSHA has issued with respect to our mining operations.

For the three-month period ended September 30, 2011, none of our mining operations received written notice from MSHA of (i) an order issued under section 104(b) of the Mine Act; (ii) a citation or order for unwarrantable failure to comply with mandatory health or safety standards under section 104 (d) of the Mine Act; (iii) a flagrant violation under section 110(b)(2) of the Mine Act; (iv) an imminent danger order under section 107(a) of the Mine Act; (v) a pattern of violations of mandatory health or

safety standards that are of such nature as could have significantly and substantially contributed to the cause and effect of our mine health or safety hazards under section 104(e) of the Mine Act; or (vi) the potential to have such a pattern. For the three-month period ended September 30, 2011, we did not have a fatality.

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The table below sets forth by mining complex the total number of citations and/or orders issued during the three-month period ended September 30, 2011 by MSHA to AMCOL and its subsidiaries under the indicated provisions of the Mine Act, together with the total dollar value of proposed MSHA assessments.

Mine	Section 104 (1)	Proposed MSHA Assessments (2)
(Amounts are actual, not thousands)
Gascoyne Mine & Mill	-	$ -
Belle Fourche Mill	7	-
Lovell Mill	1	200
Colony West Mill	5	-
Colony East Mill	2	-
Yellowtail Mine	-	-
Belle Fourche / Colony Mine	-	-
Sandy Ridge Mill	-	-

1. Total number of violations of mandatory health or safety standards that could significantly and substantially contribute to the cause and effect of a mine safety or health hazard under section 104 of the Mine Act for which AMCOL and its subsidiaries received a citation from MSHA

2. Total dollar amount of proposed assessments received from MSHA during the three-month period ended September 30, 2011.

As of September 30, 2011, we have a total of 22 matters pending before the Federal Mine Safety and Health Review Commission. This includes legal actions that were initiated prior to the three-month period ended September 30, 2011 and which do not necessarily relate to the citations, orders or proposed assessments issued by MSHA during such three month period.

In evaluating this information, consideration should be given to factors such as: (i) the number of citations and orders will vary depending on the size of the mine, (ii) the number of citations issued will vary from inspector to inspector and mine to mine, and (iii) citations and orders can be contested and appealed, and in that process, are often reduced in severity and amount, and are sometimes dismissed.

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Item 6: Exhibits

Exhibit Number
31.1	Certification of Chief Executive Officer Pursuant to Rule 13a-14(a)/15d-14(a)
31.2	Certification of Chief Financial Officer Pursuant to Rule 13a-14(a)/15d-14(a)
32	Certification of Periodic Financial Report Pursuant to 18 U.S.C. Section 1350
101	The following information from our Quarterly Report on Form 10-Q for the period ended September 30, 2011, formatted in XBRL (eXtensible Business Reporting Language): (i)     Condensed Consolidated Balance Sheets at September 30, 2011, and December 31, 2010, (ii)   Condensed Consolidated Statements of Operations for the three and nine months ended September 30, 2011 and 2010, (iii)  Condensed Consolidated Statements of Comprehensive Income (Loss) for the three and nine months ended September 30, 2011 and 2010, (iv)  Condensed Consolidated Statements of Changes in Equity for nine months ended September 30, 2011 and 2010, (v)    Condensed Consolidated Statements of Cash Flows for nine months ended September 30, 2011 and 2010, and (vi)  Notes to Condensed Consolidated Financial Statements.

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

AMCOL INTERNATIONAL CORPORATION

Date:	November 09, 2011	/s/ Ryan F. McKendrick
		Ryan F. McKendrick
		President and Chief Executive Officer

Date:	November 09, 2011	/s/ Donald W. Pearson
		Donald W. Pearson
		Vice President and Chief Financial Officer

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INDEX TO EXHIBITS

31.1	Certification of Chief Executive Officer Pursuant to Rule 13a-14(a)/15d-14(a)
31.2	Certification of Chief Financial Officer Pursuant to Rule 13a-14(a)/15d-14(a)
32	Certification of Periodic Financial Report Pursuant to 18 U.S.C. Section 1350
101	The following information from our Quarterly Report on Form 10-Q for the period ended September 30, 2011, formatted in XBRL (eXtensible Business Reporting Language): (i)     Condensed Consolidated Balance Sheets at September 30, 2011, and December 31, 2010, (ii)   Condensed Consolidated Statements of Operations for the three and nine months ended September 30, 2011 and 2010, (iii)  Condensed Consolidated Statements of Comprehensive Income (Loss) for the three and nine months ended September 30, 2011 and 2010, (iv)  Condensed Consolidated Statements of Changes in Equity for nine months ended September 30, 2011 and 2010, (v)    Condensed Consolidated Statements of Cash Flows for nine months ended September 30, 2011 and 2010, and (vi)  Notes to Condensed Consolidated Financial Statements.

42

EX-31.1

Exhibit 31.1

AMCOL INTERNATIONAL CORPORATION

CERTIFICATION

Pursuant to Rule 13a – 14(a) / 15d-14(a)

I, Ryan F. McKendrick, certify that:

1. I have reviewed this quarterly report on Form 10-Q of AMCOL International Corporation;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

AMCOL INTERNATIONAL CORPORATION

CERTIFICATION

Pursuant to Rule 13a – 14(a) / 15d-14(a)

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: November 09, 2011	/s/ Ryan F. McKendrick
	Ryan F. McKendrick
	President and Chief Executive Officer

EX-31.2

Exhibit 31.2

AMCOL INTERNATIONAL CORPORATION

CERTIFICATION

Pursuant to Rule 13a – 14(a) / 15d-14(a)

I, Donald W. Pearson, certify that:

1. I have reviewed this quarterly report on Form 10-Q of AMCOL International Corporation;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

AMCOL INTERNATIONAL CORPORATION

CERTIFICATION

Pursuant to Rule 13a – 14(a) / 15d-14(a)

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: November 09, 2011	/s/ Donald W. Pearson
	Donald W. Pearson
	Vice President and Chief Financial Officer

EX-32

Exhibit 32

Certification of Periodic Financial Report

Pursuant to 18 U.S.C. Section 1350

Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, each of the undersigned officers of AMCOL International Corporation (the “Company”) certifies that the quarterly report on Form 10-Q of the Company for the nine months ended September 30, 2011 fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 and information contained in that Form 10-Q fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: November 09, 2011	/s/ Ryan F. McKendrick
	Ryan F. McKendrick
	Chief Executive Officer

Date: November 09, 2011	/s/ Donald W. Pearson
	Donald W. Pearson
	Chief Financial Officer

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Condensed Consolidated Statements Of Operations (USD $) In Thousands, except Per Share data	3 Months Ended		9 Months Ended
	Sep. 30, 2011	Sep. 30, 2010	Sep. 30, 2011	Sep. 30, 2010
Continuing Operations
Net sales	$ 248,044	$ 228,822	$ 708,708	$ 621,650
Cost of sales	177,054	170,546	517,891	458,163
Gross profit	70,990	58,276	190,817	163,487
General, selling and administrative expenses	43,937	35,604	123,354	105,769
Operating profit	27,053	22,672	67,463	57,718
Other income (expense):
Interest expense, net	(2,824)	(2,542)	(8,308)	(7,092)
Other, net	(144)	2,191	83	2,146
Total other income (expense), net	(2,968)	(351)	(8,225)	(4,946)
Income before income taxes and income (loss) from affiliates and joint ventures	24,085	22,321	59,238	52,772
Income tax expense	6,675	5,219	16,935	12,877
Income before income (loss) from affiliates and joint ventures	17,410	17,102	42,303	39,895
Income (loss) from affiliates and joint ventures	3,080	337	4,076	266
Income (loss) from continuing operations	20,490	17,439	46,379	40,161
Discontinued Operations
Income (loss) on discontinued operations	(1,021)	(132)	(916)	(789)
Net income (loss)	19,469	17,307	45,463	39,372
Net income (loss) attributable to noncontrolling interests	44	(110)	48	(322)
Net income (loss) attributable to AMCOL shareholders	19,425	17,417	45,415	39,694
Weighted average common shares outstanding	31,800	31,225	31,672	31,137
Weighted average common and common equivalent shares outstanding	32,193	31,565	32,128	31,498
Basic earnings (loss) per share:
Continuing operations	$ 0.64	$ 0.56	$ 1.46	$ 1.30
Discontinued operations	$ (0.03)		$ (0.03)	$ (0.03)
Net income	$ 0.61	$ 0.56	$ 1.43	$ 1.27
Diluted earnings (loss) per share:
Continuing operations	$ 0.63	$ 0.55	$ 1.44	$ 1.29
Discontinued operations	$ (0.03)		$ (0.03)	$ (0.03)
Net income	$ 0.60	$ 0.55	$ 1.41	$ 1.26
Amounts attributable to Amcol International Corporation shareholders
Income from continuing operations, net of tax	20,446	17,549	46,331	40,483
Discontinued operations, net of tax	(1,021)	(132)	(916)	(789)
Net income	$ 19,425	$ 17,417	$ 45,415	$ 39,694
Dividends declared per share	$ 0.18	$ 0.18	$ 0.54	$ 0.54

XML

Condensed Consolidated Statements Of Comprehensive Income (Loss) (USD $) In Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2011	Sep. 30, 2010	Sep. 30, 2011	Sep. 30, 2010
Net income (loss)	$ 19,469	$ 17,307	$ 45,463	$ 39,372
Other comprehensive income (loss):
Foreign currency translation adjustment	(22,630)	18,508	(20,274)	5,606
Unrealized gain (loss) on available-for-sale securities, net of tax	(1,596)	(4,215)	(8,189)	(4,883)
Unrealized gain (loss) on interest rate swap agreements, net of tax	(1,302)	(1,288)	(1,652)	(3,662)
Pension adjustment, net of tax	25	30	75	94
Comprehensive income (loss)	(6,034)	30,342	15,423	36,527
AMCOL Shareholders [Member]
Net income (loss)	19,425	17,417	45,415	39,694
Other comprehensive income (loss):
Foreign currency translation adjustment	(21,982)	18,493	(19,627)	5,655
Unrealized gain (loss) on available-for-sale securities, net of tax	(1,596)	(4,215)	(8,189)	(4,883)
Unrealized gain (loss) on interest rate swap agreements, net of tax	(1,302)	(1,288)	(1,652)	(3,662)
Pension adjustment, net of tax	25	30	75	94
Comprehensive income (loss)	(5,430)	30,437	16,022	36,898
Noncontrolling Interest [Member]
Net income (loss)	44	(110)	48	(322)
Other comprehensive income (loss):
Foreign currency translation adjustment	(648)	15	(647)	(49)
Unrealized gain (loss) on available-for-sale securities, net of tax
Unrealized gain (loss) on interest rate swap agreements, net of tax
Pension adjustment, net of tax
Comprehensive income (loss)	$ (604)	$ (95)	$ (599)	$ (371)

XML

Document And Entity Information	9 Months Ended
	Sep. 30, 2011	Oct. 31, 2011
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2011
Document Fiscal Period Focus	Q3
Entity Registrant Name	AMCOL INTERNATIONAL CORP
Entity Central Index Key	0000813621
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Document Fiscal Year Focus	2011
Entity Common Stock, Shares Outstanding		31,670,314

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Income Taxes

9 Months Ended

Sep. 30, 2011

Income Taxes [Abstract]

Income Taxes

Note 6:        INCOME TAXES

Our effective tax rate for the nine months ended September 30, 2011 and 2010 was 28.6% and 24.4%, respectively. For both periods, the rate differs from the U.S. federal statutory rate of 35.0% largely due to depletion deductions, changes in tax reserves, differences in local tax rates on the income from our foreign subsidiaries, and the correction of an error in the nine months ended September 30, 2011, which was not material to our financial statements.

In the normal course of business, we are subject to examination by taxing authorities throughout the world. With few exceptions, we are no longer subject to income tax examinations by tax authorities for years prior to 2004. In general, the United States Internal Revenue Service ("IRS") has examined our federal income tax returns for all years through 2009.

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Contingencies

9 Months Ended

Sep. 30, 2011

Contingencies [Abstract]

Contingencies

Note 11:        CONTINGENCIES

We are party to a number of lawsuits arising in the normal course of business. As our businesses continue to grow, especially in our oilfield services segment, we expect these lawsuits and claims to increase. However, we do not believe that any pending litigation will have a material adverse effect on our consolidated financial statements.

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Earnings Per Share

9 Months Ended

Sep. 30, 2011

Earnings Per Share [Abstract]

Earnings Per Share

Note 2:           EARNINGS PER SHARE

The table below provides further share information used in computing our earnings per share for the periods presented herein. Basic earnings per share was computed by dividing net income attributable to AMCOL shareholders by the weighted average number of common shares outstanding during each period. Diluted earnings per share was computed by dividing net income attributable to AMCOL shareholders by the weighted average common shares outstanding after consideration of the dilutive effect of stock based compensation outstanding during each period.

	Nine Months Ended September 30,				Three Months Ended September 30,
	2011		2010		2011		2010
Weighted average number of common shares outstanding		31,671,781		31,136,740		31,799,536		31,225,430
Dilutive impact of stock based compensation		455,777		361,286		393,922		339,698
Weighted average number of common and common equivalent shares outstanding for the period		32,127,558		31,498,026		32,193,458		31,565,128
Number of common shares outstanding at the end of the period		31,666,904		31,100,692		31,666,904		31,100,692
Weighted average number of anti-dilutive shares excluded from the computation of diluted earnings per share		186,929		570,259		218,800		511,792

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Fair Value Measurements

9 Months Ended

Sep. 30, 2011

Fair Value Measurements [Abstract]

Fair Value Measurements

Note 8:         FAIR VALUE MEASUREMENTS

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Our calculation of the fair value of derivative instruments includes several assumptions. The fair value hierarchy prioritizes these input assumptions in the following three broad levels:

Level 1 – Valuation is based on quoted prices (unadjusted) in active markets for identical assets or liabilities we have the ability to access at the measurement date.

Level 2 – Valuation is based on quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active and model based valuations for which all significant inputs are observable in the market.

Level 3 – Valuation is based on model based techniques that use unobservable inputs for the asset or liability. These inputs reflect our own assumption about the assumption market participants would use in pricing the asset or liability.

The following tables categorize our fair value instruments, measured on a recurring basis, according to the assumptions used to calculate those values:

				Fair Value Measurements Using
Description	Asset / (Liability) Balance at 9/30/2011			Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)
Interest rate swaps	$	(9,271	)	$	-	$	(9,271	)	$	-
Available-for-sale securities		4,956			4,956		-			-
Deferred compensation plan assets		8,059			-		8,059			-
Supplementary pension plan assets		7,154			-		7,154			-

				Fair Value Measurements Using
Description	Asset / (Liability) Balance at 12/31/2010			Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)
Interest rate swaps	$	(6,666	)	$	-	$	(6,666	)	$	-
Available-for-sale securities		14,168			14,168		-			-
Deferred compensation plan assets		8,358			-		8,358			-
Supplementary pension plan assets		7,676			-		7,676			-

Interest rate swaps are valued using discounted cash flows. The key input used is the LIBOR swap rate, which is observable at commonly quoted intervals for the full term of the swap. Available-for-sale securities are valued using quoted market prices. Deferred compensation and supplemental pension plan assets are valued using quoted prices for similar assets in active markets.

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Discontinued Operations

9 Months Ended

Sep. 30, 2011

Discontinued Operations [Abstract]

Discontinued Operations

Note 9:        DISCONTINUED OPERATIONS

In September 2011, our environmental segment sold CETCO Contracting Services Company, which comprised our domestic contracting services business. The operations of this business for current and prior periods, including the loss on the sale of $143, have been reclassified and are recorded net of income tax within Income (loss) on discontinued operations within our Condensed Consolidated Statements of Operations.

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Derivative Instruments And Hedging Activities

9 Months Ended

Sep. 30, 2011

Derivative Instruments And Hedging Activities [Abstract]

Derivative Instruments And Hedging Activities

Note 7:        DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES

As a multinational corporation with operations throughout the world, we are subject to certain market risks. We use a variety of practices to manage these market risks, including, when considered appropriate, derivative financial instruments. We use derivative financial instruments only for risk management and not for trading or speculative purposes.

The following table sets forth the fair values of our derivative instruments and where they are recorded within our Condensed Consolidated Balance Sheet:

Liability Derivatives	Balance Sheet Location	Fair Value as of
		September 30, 2011			December 31, 2010
Derivatives designated as hedging instruments:
Interest rate swaps	Other long-term liabilities	$	(9,271	)	$	(6,666	)

Cash flow hedges

Derivatives in Cash Flow Hedging Relationships	Amount of Gain or (Loss) Recognized in Other Comprehensive Income on Derivatives (Effective Portion)
	Nine Months Ended September 30,						Three Months Ended September 30,
	2011			2010			2011			2010
Interest rate swaps, net of tax	$	(1,652	)	$	(3,662	)	$	(1,302	)	$	(1,288	)

We use interest rate swaps to manage floating interest rate risk on debt securities. Interest rate differentials are paid or received on these arrangements over the life of the agreements. As of September 30, 2011 and 2010, we had interest rate swaps outstanding which effectively hedge the variable interest rate on $30,000 of our senior notes to a fixed rate of 5.6% per annum and $33,000 of our borrowings under our revolving credit agreement to a fixed rate of 3.3% per annum plus credit spread.

Other

We are exposed to potential gains or losses from foreign currency fluctuations affecting net investments and earnings denominated in foreign currencies. Our primary U.S. dollar exposures are to fluctuations in the British Pound, Euro, Polish Zloty and South African Rand. We also have significant exposure to fluctuations in exchange rates between the British Pound and the Euro as well as between the Polish Zloty and the Euro. When we believe it appropriate, we enter into foreign exchange derivative contracts to mitigate the risk of fluctuations in these foreign currency exchange rates.

We have not designated our foreign currency derivative contracts for hedge accounting treatment and therefore, changes in fair value of these contracts are recorded in earnings as follows:

Derivatives Not Designated as Hedging Instruments	Location of  Gain or (Loss) Recognized in Income on Derivatives	Amount of Gain or (Loss) Recognized in Income on Derivatives
		Nine Months Ended September 30,						Three Months Ended September 30,
		2011			2010			2011		2010
Foreign currency exchange contracts	Other, net	$	(780	)	$	(347	)	$	544	$	(158	)

We did not have any significant foreign exchange derivative instruments outstanding as of September 30, 2011 or December 31, 2010.

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Condensed Consolidated Statements Of Cash Flows (USD $) In Thousands	9 Months Ended
	Sep. 30, 2011		Sep. 30, 2010
Cash flow from operating activities:
Net income	$ 45,463		$ 39,372
Adjustments to reconcile from net income (loss) to net cash provided by (used in) operating activities:
Depreciation, depletion, and amortization	30,945		26,470
Other non-cash charges	4,044		3,174
Changes in assets and liabilities, net of effects of acquisitions:
Decrease (increase) in current assets	(89,320)		(69,385)
Decrease (increase) in noncurrent assets	1,789		(2,298)
Increase (decrease) in current liabilities	24,894		34,832
Increase (decrease) in noncurrent liabilities	(1,170)		2,999
Net cash provided by (used in) operating activities	16,645		35,164
Cash flow from investing activities:
Capital expenditures	(43,824)		(37,944)
Investments in and advances to affiliates and joint ventures	(1,237)		(2,047)
Proceeds from sale of joint ventures	2,023
Other	2,118		1,210
Net cash (used in) investing activities	(40,920)		(38,781)
Cash flow from financing activities:
Net change in outstanding debt	14,891		21,004
Purchase of noncontrolling interest			(11,873)
Proceeds from sales of treasury stock	7,000		3,252
Dividends	(17,051)		(16,745)
Excess tax benefits from stock-based compensation	669		394
Net cash provided by (used in) financing activities	5,509		(3,968)
Effect of foreign currency rate changes on cash	849		242
Net increase (decrease) in cash and cash equivalents	(17,917)		(7,343)
Cash and cash equivalents at beginning of period	27,262	[1]	27,669
Cash and cash equivalents at end of period	$ 9,345		$ 20,326

[1] Condensed from audited financial statements.

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Additional Balance Sheet Information

9 Months Ended

Sep. 30, 2011

Additional Balance Sheet Information [Abstract]

Additional Balance Sheet Information

Note 3:        ADDITIONAL BALANCE SHEET INFORMATION

Our inventories at September 30, 2011 and December 31, 2010 are comprised of the following components:

	September 30, 2011		December 31, 2010
Crude stockpile inventories	$	41,923	$	35,308
In-process and finished goods inventories		67,463		47,510
Other raw material, container, and supplies inventories		24,574		24,697
	$	133,960	$	107,515

We mine various minerals using a surface mining process that requires the removal of overburden. In certain areas and under various governmental regulations, we are obligated to restore the land comprising each mining site to its original condition at the completion of the mining activity. We include an estimate of this reclamation liability in our Condensed Consolidated Balance Sheets; it is adjusted to reflect the passage of time and changes in estimated future cash outflows. A reconciliation of the activity within our reclamation liability is as follows:

	Nine Months Ended September 30,
	2011			2010
Balance at beginning of period	$	7,529		$	6,584
Settlement of obligations		(2,769	)		(1,182	)
Liabilities incurred and accretion expense		4,386			1,813
Foreign currency		(345	)		56
Balance at end of period	$	8,801		$	7,271

We own shares of Ashapura Minechem Limited ("Ashapura"), a public company traded on the Bombay Stock Exchange Limited. We include this investment at its fair value within our Condensed Consolidated Balance Sheets with the unrealized gains or losses, resulting from fluctuations in its fair value, as a component of accumulated other comprehensive income within equity. The following table sets forth the gains recorded in accumulated comprehensive income (loss) within equity in our Condensed Consolidated Balance Sheet:

	September 30, 2011		December 31, 2010
Unrealized gain on avaliable-for-sale securities	$	3,657	$	12,869
Tax expense		-		1,022
Unrealized gain on avaliable-for-sale securities, net of tax expense	$	3,657	$	11,847

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Business Segment Information

9 Months Ended

Sep. 30, 2011

Business Segment Information [Abstract]

Business Segment Information

Note 4:        BUSINESS SEGMENT INFORMATION

As previously mentioned, we operate in five segments. Our segments are fairly diverse with respect to the products and services they offer as well as the customers they serve. Accordingly, we organize our segments based on the products provided and industries they serve. We measure segment performance based on operating profit, which is defined as net sales less cost of sales and general, selling and administrative expenses related to a segment's operations. The costs deducted to arrive at operating profit do not include several items, such as net interest expense or income taxes. Segment assets are those assets used in the operations of that segment. Corporate assets include assets used in the operation of this segment as well as those used by or shared amongst our segments, including cash and cash equivalents, certain fixed assets, assets associated with certain employee benefit plans, and other miscellaneous assets.

The following tables set forth certain financial information by segment:

	Nine Months Ended September  30,				Three Months Ended September  30,
	2011		2010		2011		2010
Net sales:
Minerals and materials	$	360,523	$	314,417	$	123,792	$	110,332
Environmental		193,512		168,242		69,543		67,744
Oilfield services		139,756		111,052		50,175		41,204
Transportation		42,331		39,987		14,877		14,284
Intersegment sales		(27,414)		(12,048)		(10,343)		(4,742)
Total	$	708,708	$	621,650	$	248,044	$	228,822
Operating profit (loss):
Minerals and materials	$	50,980	$	42,973	$	20,110	$	12,341
Environmental		17,849		17,040		7,637		8,701
Oilfield services		14,082		9,860		5,787		4,079
Transportation		1,920		1,964		770		754
Corporate		(17,368)		(14,119)		(7,251)		(3,203)
Total	$	67,463	$	57,718	$	27,053	$	22,672
	As of Sep. 30, 2011		As of Dec. 31, 2010
Assets:
Minerals and materials	$	403,582	$	402,640
Environmental		170,798		160,053
Oilfield services		192,374		173,239
Transportation		3,877		4,071
Corporate		63,049		59,090
Total	$	833,680	$	799,093

	Nine Months Ended September 30,					Three Months Ended September 30,
	2011		2010			2011			2010
Depreciation, depletion and amortization:
Minerals and materials	$	15,337	$	12,316		$	5,518		$	4,544
Environmental		4,110		4,017			1,495			1,438
Oilfield services		9,448		8,807			3,326			3,028
Transportation		55		31			21			11
Corporate		1,995		1,299			854			427
Total	$	30,945	$	26,470		$	11,214		$	9,448
Capital expenditures:
Minerals and materials	$	17,770	$	24,367		$	8,715		$	5,297
Environmental		6,427		2,051			4,559			1,096
Oilfield services		17,796		10,264			4,898			5,358
Transportation		198		52			44			14
Corporate		1,633		1,210			808			240
Total	$	43,824	$	37,944		$	19,024		$	12,005
Research and development (income) expense:
Minerals and materials	$	4,653	$	4,331		$	1,513		$	1,572
Environmental		1,627		1,870			577			596
Oilfield services		198		510			(6	)		188
Corporate		122		(11	)		275			(51	)
Total	$	6,600	$	6,700		$	2,359		$	2,305

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Employee Benefit Plans

9 Months Ended

Sep. 30, 2011

Employee Benefit Plans [Abstract]

Employee Benefit Plans

Note 5:        EMPLOYEE BENEFIT PLANS

Our net periodic benefit cost for our defined benefit pension plan was as follows:

	Nine Months Ended September  30,				Three Months Ended September  30,
	2011		2010		2011		2010
Service cost	$	1,137	$	1,050	$	379	$	350
Interest cost		1,956		1,869		652		623
Expected return on plan assets		(2,144)		(1,962)		(715)		(654)
Amortization of prior service cost		48		48		16		16
Net periodic benefit cost	$	998	$	1,005	$	333	$	335

We expected to contribute $1,500 to our pension plan in 2011, and this was fully contributed in the nine months ended September 30, 2011.

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Condensed Consolidated Statements Of Changes In Equity (USD $) In Thousands	Retained Earnings [Member]	Accumulated Other Comprehensive Income (Loss) [Member]	Common Stock [Member]	Treasury Stock [Member]	Paid-In Capital [Member]	Noncontrolling Interest [Member]	Total
Balance at Dec. 31, 2009	$ 275,200	$ 32,174	$ 320	$ (14,377)	$ 84,830	$ 1,625	$ 379,772
Net income (loss)	39,694					(322)	39,372
Cash dividends	(16,745)						(16,745)
Issuance of treasury shares pursuant to employee stock compensation plans				3,769	1,330		5,099
Tax benefit from employee stock compensation plans					343		343
Vesting of common stock in connection with employee stock compensation plans					2,462		2,462
Purchase of noncontrolling interest					2,701		2,701
Other comprehensive income (loss)		(2,796)				(49)	(2,845)
Balance at Sep. 30, 2010	298,149	29,378	320	(10,608)	91,666	1,254	410,159
Balance at Dec. 31, 2010	283,189	28,936	320	(8,945)	95,074	1,862	400,436	[1]
Net income (loss)	45,415					48	45,463
Cash dividends	(17,051)						(17,051)
Issuance of treasury shares pursuant to employee stock compensation plans				4,820	2,048		6,868
Tax benefit from employee stock compensation plans					598		598
Vesting of common stock in connection with employee stock compensation plans					3,681		3,681
Purchase of noncontrolling interest					(5,189)	(546)	(5,735)
Sale of subsidiary shares to noncontrolling interest		(1,390)			(3,403)	4,793
Deconsolidation of variable interest entity						(1,254)	(1,254)
Other comprehensive income (loss)		(28,003)				(647)	(28,650)
Balance at Sep. 30, 2011	$ 311,553	$ (457)	$ 320	$ (4,125)	$ 92,809	$ 4,256	$ 404,356

[1] Condensed from audited financial statements.

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Summary Of Significant Accounting Policies

9 Months Ended

Sep. 30, 2011

Summary Of Significant Accounting Policies [Abstract]

Summary Of Significant Accounting Policies

Note 1:           SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Company Operations

We, AMCOL International Corporation (the "Company"), are a global company focused on long-term profitable growth through the development and application of minerals and technology products and services to various industrial and consumer markets. We operate in five segments: minerals and materials, environmental, oilfield services, transportation and corporate. Our minerals and materials segment mines, processes and distributes minerals and products with similar applications for use in various industrial and consumer markets, including metalcasting, pet care, laundry care, and drilling industries. Additionally, this segment develops and manufactures synthetic materials principally for personal care applications. Our environmental segment manufactures and distributes products and provides related services for use as moisture and vapor barriers in commercial construction, landfills and a variety of other industrial and commercial applications. Our oilfield services segment provides both onshore and offshore water treatment filtration, well testing, pipeline separation, nitrogen, coil tubing and other services to the oil and natural gas industry. Our transportation segment includes both a long-haul trucking business and a freight brokerage business for our domestic subsidiaries as well as third parties. Our corporate segment includes the elimination of intersegment sales as well as certain expenses associated with research and development, management, employee benefits and information technology activities for our Company. Approximately 76% and 100% of the revenue elimination in the nine months ended September 31, 2011 and 2010, respectively, and 74% and 100% of the revenue elimination in the three months ended September 30, 2011 and 2010, respectively, represents elimination of shipping revenues between our transportation segment and its domestic sister companies. The composition of our revenues by segment is as follows:

	Nine  Months Ended September 30,
	2011	2010
Minerals and materials	51%	51%
Environmental	27%	27%
Oilfield services	20%	18%
Transportation	6%	6%
Intersegment sales	-4%	-2%
	100%	100%

Further discussion of segment information is included in Note 4, "Business Segment Information."

Basis of Presentation

The financial information included herein has been prepared by management, and other than the condensed consolidated balance sheet as of December 31, 2010, is unaudited. The condensed consolidated balance sheet as of December 31, 2010 has been derived from, but does not include all of the disclosures contained in, the audited consolidated financial statements for the year ended December 31, 2010. The information furnished herein includes all adjustments that are, in our opinion, necessary for a fair presentation of our results of operations and cash flows for the interim periods ended September 30, 2011 and 2010, and our financial position as of September 30, 2011, and all such adjustments are of a normal and recurring nature. The accompanying condensed consolidated financial information should be read in conjunction with the consolidated financial statements and related notes included in our Annual Report on Form 10-K for the year ended December 31, 2010.

Certain items in the prior year's condensed consolidated financial statements contained herein and notes thereto have been reclassified to conform to the condensed consolidated financial statement presentation for the three and nine months ended September 30, 2011. These reclassifications did not have a material impact on our financial statements.

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America ("US GAAP") requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results may differ from those estimates.

The results of operations for interim periods are not necessarily indicative of the results to be expected for the full year for a variety of reasons, including the seasonality of both our environmental segment, which varies due to the seasonal nature of the construction industry, and our oilfield services segment, which varies due to seasonal weather patterns in its various markets.

Recently Issued Accounting Pronouncements

Accounting pronouncements that have not yet become effective with respect to our consolidated financial statements are detailed as follows, together with our assessment of the potential impact they may have on our consolidated financial statements.

In September 2011, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2011-08, codified in Accounting Standards Codification ("ASC") Topic 350 – Intangibles – Goodwill and Other. ASU 2011-08 simplifies how entities test goodwill for impairment and permits an entity to first assess qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount as a basis for determining whether it is necessary to perform the two-step goodwill impairment test described in Topic 350. We do not expect this ASU to have a material impact on our financial statements when we adopt it on January 1, 2012.

In June 2011, the FASB issued ASU 2011-05, codified in ASC Topic 220 – Comprehensive Income. The objective of this ASU is to increase the prominence of items reported in other comprehensive income ("OCI"). This ASU requires presentation of items of net income, items of OCI and total comprehensive income either in one continuous statement or two separate but consecutive statements. It also requires any reclassification adjustments between OCI and net income to be presented separately on the face of the financial statements. We do not expect this ASU to have a material impact on our financial statements when we adopt it on January 1, 2012.

In May 2011, the FASB issued ASU 2011-04, codified in ASC Topic 820 – Fair Value Measurements. This ASU includes amendments that clarify the intent about the application of existing fair value measurement requirements. Specifically, the guidance requires additional disclosures for fair value measurements that are based on significant inputs. We do not expect this ASU to have a material impact on our financial statements when we adopt it on January 1, 2012.

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Noncontrolling Interest

9 Months Ended

Sep. 30, 2011

Noncontrolling Interest [Abstract]

Noncontrolling Interest

Note 10:        NONCONTROLLING INTEREST

In January 2011, we acquired the remaining noncontrolling interest in Volclay South Africa (Proprietary) Limited, a part of our chromite business, for approximately $5,600.

In February 2011, we sold 26% of our interest in Batlhako Mining Limited ("Batlhako") to Vengawave (Proprietary) Limited, which is a Black Economic Empowerment enterprise (a "BEE") in the Republic of South Africa. Batlhako is our subsidiary dedicated strictly to mining chromite ore and selling it to one of our other subsidiaries for further processing and sale to the end customer. South African law requires that we have a BEE as a partner in the mining operations and this transaction was consummated to comply with those regulations.

The following table sets forth the effects of these transactions on equity attributable to AMCOL's shareholders:

	Nine Months Ended September 30, 2011
Net income attributable to AMCOL shareholders	$	45,415
Transfers from noncontrolling interest:
Decrease in additional paid-in capital for purchase of the remaining noncontrolling interest in South Africa (Proprietary) Limited		(5,189)
Decrease in additional paid-in capital for transfer of 26% interest in Batlhako		(3,403)
Change from net income attributable to AMCOL shareholders and transfers from noncontrolling interest	$	36,823

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Condensed Consolidated Balance Sheets (USD $) In Thousands	Sep. 30, 2011	Dec. 31, 2010
Current assets:
Cash and cash equivalents	$ 9,345	$ 27,262	[1]
Accounts receivable, net	215,166	193,968	[1]
Inventories	133,960	107,515	[1]
Prepaid expenses	17,538	12,581	[1]
Deferred income taxes	4,420	5,553	[1]
Income tax receivable	16,356	8,474	[1]
Other	9,683	6,211	[1]
Total current assets	406,468	361,564	[1]
Noncurrent assets:
Land	14,191	11,591	[1]
Mineral rights	43,096	51,435	[1]
Depreciable assets	481,120	454,351	[1]
Gross property, plant and equipment	538,407	517,377	[1]
Less: accumulated depreciation and depletion	278,887	256,889	[1]
Net property, plant and equipment	259,520	260,488	[1]
Goodwill	70,174	70,909	[1]
Intangible assets, net	37,903	42,590	[1]
Investment in and advances to affiliates and joint ventures	24,516	19,056	[1]
Available-for-sale securities	4,956	14,168	[1]
Deferred income taxes	8,817	7,570	[1]
Other assets	21,326	22,748	[1]
Total noncurrent assets	427,212	437,529	[1]
Total Assets	833,680	799,093	[1]
Current liabilities:
Accounts payable	53,048	53,167	[1]
Accrued income taxes	15,201	4,014	[1]
Accrued liabilities	61,115	55,294	[1]
Total current liabilities	129,364	112,475	[1]
Noncurrent liabilities:
Long-term debt	250,394	236,171	[1]
Pension liabilities	21,020	21,338	[1]
Other long-term liabilities	28,546	28,673	[1]
Total noncurrent liabilities	299,960	286,182	[1]
Shareholders' Equity:
Common stock	320	320	[1]
Additional paid in capital	92,809	95,074	[1]
Retained earnings	311,553	283,189	[1]
Accumulated other comprehensive income (loss)	(457)	28,936	[1]
Less: Treasury stock	(4,125)	(8,945)	[1]
Total AMCOL shareholders' equity	400,100	398,574	[1]
Noncontrolling interest	4,256	1,862	[1]
Total equity	404,356	400,436	[1]
Total Liabilities and Shareholders' Equity	$ 833,680	$ 799,093	[1]

[1] Condensed from audited financial statements.