27 October 2008 23:04 [Source: ICIS news]
HOUSTON (ICIS news)--US water and paper chemicals producer Hercules reported on Monday third-quarter net profits of $39.5m (€31.6m), down 19% from $48.8m reported for the same time last year - as expenses overtook sales.
The company reported net sales of $605.8m, up from $544.2m reported for the same time last year. Cost of sales were $421.3m, up from $358.0m reported for 2007.
Selling, general and administrative (SG&A) expenses as well as other operating expenses also rose year over year, leading to the overall drop in net profits, according to Hercules.
By segment, paper technologies reported third-quarter operating profits of $23.0m, down from $40.2m reported for 2007. Excluding the sale of the company's technology unit, profit fell by $4.8m or 17%.
The company's Aqualon Group reported operating profits of $57.4m, up from $55.7m for 2007. The Aqualon group includes such business units as coatings and construction and energy.
Hercules has agreed to be acquired by Ashland. Under the agreement, Ashland would buy Hercules for $3.3bn or $23.01/share.
Shares of Hercules traded on Monday at $13.36 on the New York Stock Exchange, up 0.68%.
($1 = €0.80)For more on Ashland or Hercules visit ICIS company intelligence
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