12 March 2014 13:34 [Source: ICIS news]
HOUSTON (ICIS)--KMG Chemicals reported a $2.7m loss in its fiscal 2014 second quarter, compared with a net profit of $1.6m a year before, mainly because of restructuring charges and depreciation expenses related to an acquisition, the US-based specialty chemicals firm said on Wednesday.
KMG’s sales rose almost 48% year over year to $84.3m, driven by the acquisition of Ultra Pure Chemicals last year.
CEO Chris Fraser said that KMG saw "seasonal softness" in both its core businesses, electronic chemicals and wood treatment chemicals, in the three months ended 31 January.
"Although seasonality in our electronic chemicals business was a headwind during the quarter, this segment’s performance benefited from volume growth at key customers, ongoing cost controls and the realisation of supply chain efficiencies," Fraser added.
Meanwhile, KMG is progressing on a strategic manufacturing realignment of its global electronic chemicals business, a move that should "generate significant operating efficiencies" in 2014 and 2015, he said.
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