US KMG Chemicals' Q4 net income soars despite lower sales

12 October 2012 13:35  [Source: ICIS news]

HOUSTON (ICIS)--KMG Chemicals' fiscal 2012 fourth-quarter net income rose to $3.86m (€2.97m), from $1.18m in the same period last year, even though sales fell, the US-based producer said on Friday.

KMG credited higher margins and improved operating profitability in its core electronic chemicals and wood treatment chemicals businesses for the year-on-year increase in net income.

KMG’s sales for the three months ended 31 July were down 4.7% to $67.6m as wood treatment chemical sales declined.

Looking ahead, CEO Neal Butler said that despite continued economic weakness in Europe, and to a lesser extent in the US, KMG expects that its fiscal first-quarter earnings will be comparable to those in the same period a year ago.

“We have been encouraged by demand trends within our electronic chemicals business and anticipate our results within this segment will remain stable in the first fiscal quarter, aided by customer fab [fabrication] expansion activities,” Butler said.

“As always, we remain active in pursuing accretive acquisitions and have identified promising opportunities in both the electronic chemicals and wood treating chemicals segments,” he added.

($1 = €0.77)

By: Stefan Baumgarten
+1 713 525 2653

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