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KMG Chemicals, Inc. (NYSE:KMG), a global provider of specialty chemicals in select markets, today announced financial results for its fourth fiscal quarter and fiscal year ended July 31, 2012.
2012 Fourth Fiscal Quarter Highlights
Net sales were $67.6 million, down 4.7% from the comparable quarter in the year-ago period.
Gross profit margins increased to 30.5%, from 23.9% in the fourth fiscal quarter of 2011.
Operating income increased 167% to $6.7 million vs. $2.5 million in the same period a year ago.
Diluted earnings per share from continuing operations more than tripled to $0.34 vs. $0.09 per share reported in last year’s fourth fiscal quarter.
Electronic Chemicals segment operating margins (after corporate allocations) improved to 10.0% vs. 0.7% in the fourth fiscal quarter of 2011.
2012 Fiscal Year Highlights
Net sales were $273 million, a 6.6% increase from $256 million in fiscal 2011.
Operating income rose 49% to $25.4 million vs. $17.0 million in fiscal 2011.
Diluted earnings per share from continuing operations were $1.24, a 51% increase from last year’s $0.82 in diluted earnings per share from continuing operations.
Electronic Chemicals segment sales grew to a record $159 million, up 5.3% from fiscal 2011.
Electronic Chemicals segment operating margins (after corporate allocations) more than doubled to 8.4%, from 4.1% in fiscal 2011.
Wood Treating Chemicals segment sales were $113 million, up 8.6% from $104 million in fiscal 2011.
Net cash provided by operating activities was $25.2 million, compared to $12.7 million in fiscal 2011.
Neal Butler, President and CEO of KMG, commented, “We are pleased with our fiscal 2012 results, which included a 51% year/year increase in diluted earnings per share from continuing operations, particularly in light of continued economic weakness in Europe and sluggish economic growth in the U.S. We have made significant progress in integrating and optimizing acquired assets in our Electronic Chemicals business, resulting in segment operating margins more than doubling on a year-over-year basis. While our Wood Treating Chemicals business remains an important contributor to our overall performance, this business has underperformed our expectations recently. However, we are taking steps to improve performance as fiscal 2013 progresses.”