07 December 2012 13:44 [Source: ICIS news]
HOUSTON (ICIS)--KMG Chemicals' fiscal 2013 first-quarter net income rose 17% year on year to $4.1m (€3.1m), driven by an improved performance of its core electronic chemicals business, the US-based producer said on Friday.
However, KMG’s sales for the three months ended 31 October fell 8.7% year on year to $65.3m because of lower volumes in the company’s wood treating chemical business.
In addition, demand for KMG’s high purity electronic chemicals softened in the first quarter, as semiconductor manufacturers curtailed production in response to weakening global economic conditions, the company said.
KMG's overall first-quarter operating income increased by 1.6% to $7.1m.
“Our first-quarter results underscore the progress we have made in integrating and optimising acquired assets within our electronic chemicals business,” said CEO Neal Butler.
Electronic chemicals segment operating margins were 12.8% - up from 10.0% in the 2012 fourth and from 6.9% in the 2012 first quarter – mainly because of the realisation of pricing adjustments implemented in response to prior raw material cost increases.
KMG expects demand in both the electronics and the wood treatment chemicals segment to decline in the current second fiscal quarter before strengthening in the second half of fiscal year 2013, Butler added.
($1 = €0.76)
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