09 March 2012 14:33 [Source: ICIS news]
HOUSTON (ICIS)--KMG Chemicals reported fiscal 2012 second-quarter net income almost unchanged year on year at $2.5m (€1.9m), versus $2.4m a year ago, but sales rose by 7.3%, mainly driven by price increases in the company’s electronic and wood-treating chemicals segments, the US-based specialty chemicals firm said on Friday.
KMG’s sales for the three months ended 31 January were $69.7m, up from $64.9m in the fiscal 2011 second quarter.
Operating income increased to $5.1m, from $4.8m the same period a year ago.
KMG said electronic chemicals sales rose 7.2% year on year to $38.6m, because of price increases. In addition, two new semiconductor sites built in the US mitigated the impact on KMG of the overall softening in the global semiconductor manufacturing market, it said.
The electronic chemicals segment is KMG’s largest business, accounting for about 55% of total sales in the quarter.
Sales in KMG’s wood-treating chemicals business rose by 10.0% year on year to $28.4m, driven by price increases implemented in response to increased raw material costs, the company said.
Meanwhile, second-quarter sales in KMG’s animal health segment fell to $2.7m, from $3.1m. KMG sold that business to Germany-based chemicals company Bayer, effective 1 March.
CEO Neal Butler said the company expects to improve full-year fiscal 2012 results, compared with 2011, “barring any substantial economic downturn”.
“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,” Butler added.
($1 = €0.75)
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