US Hercules Q2 net profit rises 49% yr-on-yr

21 July 2008 23:09  [Source: ICIS news]

HOUSTON (ICIS news)--US paper and water-treatment chemicals producer Hercules reported on Monday a second-quarter net profit of $61.0m (€38m), up 48% from $41.3m reported for the same time last year.

However, net profit from ongoing operations was $43.6m, down from $45.8m reported for the same time least year.

Net sales were $612.6m, up from $549.0m reported for the same time last year, Hercules said. Cost of sales were $420.1m, up from $358.8m reported for the second quarter of 2007.

By segment, the company's Aqualon group reported operating profits of $56.6m, down from $62.5m reported for the same time last year, Hercules said. Paper technologies reported an operating profit of $23.9m, down from $31.8m reported for the same time last year.

Hercules attributed the lower operating profits to higher costs for raw materials, transportation and utilities. In addition, a customer declared bankruptcy.

Ashland said on 11 July that it would buy Hercules for $3.3bn.

($1 = €0.63)

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Author: Al Greenwood
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