US KMG Chemicals’ fiscal Q1 net income flat, sales rise 18%

09 December 2011 13:01  [Source: ICIS news]

LONDON (ICIS)--KMG Chemicals reported a fiscal 2012 first-quarter net income of $3.5m (€2.6m), flat with the same period the year before, as the company implemented higher pricing to offset inflated raw material costs, the US specialty chemicals producer said on Friday.

Net income in the fiscal first quarter of the previous year was favourably impacted by a $410,000 reduction in income tax expenses, the specialty chemicals producer added.

KMG’s net sales in the fiscal 2012 first quarter increased 18% to $73.3m from $62.1m in the first quarter of fiscal 2011, as all of KMG’s reportable sectors – electronic chemicals, wood treating chemicals, and animal health – witnessed  growth in demand.

The group’s operating income for the quarter rose 17.1% year on year to $6.5m, it added.

President and CEO Neal Butler said: “Barring any substantial economic downturn we remain confident in our ability to generate significantly improved results in fiscal 2012 as compared to fiscal 2011.

“Each of our three segments reported quarter-over-quarter sales increases. The positive impact of our Electronic Chemicals plant consolidation began to manifest itself in the fiscal 2012 first quarter, as segment operating profits rebounded to their highest levels since the first quarter of fiscal 2011.”

Looking ahead, Butler believes KMG will experience growth in its Electronic Chemicals business in the second half of fiscal 2012 compared with the same period the year before, driven by new semiconductor fabrication facilities in the group’s north American market, as demand for chips increases.

He added: “Seasonal softness in all segments is expected to produce a small drop in net income for the second quarter of fiscal 2012 when compared to the first quarter of fiscal 2012.

“We also remain focused on finding additional consolidating acquisitions in Electronic Chemicals and Wood Treating Chemicals, as well as attractive opportunities to expand into a new segment platform.”

 

For more on KMG visit ICIS company intelligence


By: Franco Capaldo
+44 (0)20 8652 3214



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