13 October 2011 14:02 [Source: ICIS news]
HOUSTON (ICIS)--KMG Chemicals’ fiscal fourth-quarter net income fell 65% year on year to $1.2m (€864,000), mainly because of higher raw materials and distribution costs, as well as costs from consolidating manufacturing operations, the US specialty chemicals producer said on Thursday.
KMG’s sales rose 19% year on year to $74.2m, driven by higher sales in the company's electronic chemicals and wood treatment chemicals businesses, it said.
CEO Neal Butler said the electronics chemicals business benefited from a strong semiconductor market and global price increases.
However, KMG’s price increases did not keep up with a “rapid escalation” in costs, he said. Electronic chemicals is KMG’s largest segment by sales, accounting for 54% of total sales during the quarter.
As for KMG’s outlook, ?xml:namespace>
Absent a global recession, KMG should see organic growth in its core electronic chemicals business in 2012 and beyond, Butler said.
At the same time, KMG will look for “additional consolidating acquisitions” in electronic chemicals and wood treating chemicals to drive growth, he added.
($1 = €0.72)
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