KMG Chemicals, Inc. (NYSE: KMG), a global provider of specialty chemicals in select markets, today announced financial results for the fiscal 2013 first quarter ended October 31, 2012.
2013 First Fiscal Quarter Highlights
- Net sales were $65.3 million, down 8.7% from the comparable quarter in fiscal 2012, reflecting reduced volumes within our Wood Treating Chemicals business.
- Gross profit margins increased to 30.7%, from 26.1% in the first fiscal quarter of 2012.
- Operating income increased 1.6% to $7.1 million vs. $7.0 million in the same period a year ago.
- Diluted earnings per share were $0.36, up 16% from $0.31 per share in last year’s first fiscal quarter.
- Electronic Chemicals segment operating margins (after corporate allocations) improved to 12.8% vs. 6.9% in the first fiscal quarter of 2012.
- Wood Treating Chemicals segment operating margins (after corporate allocations) were 13.1% vs. 15.7% in last year’s first quarter.
Neal Butler, President and CEO of KMG, commented, “Our first quarter results underscore the progress we have made in integrating and optimizing acquired assets within our Electronic Chemicals business. Electronic Chemicals segment operating margins improved 280 bps from the fourth quarter of 2012 and 590 bps from last year’s first quarter. Although our Wood Treating Chemicals business experienced a challenging first quarter, increased profitability within our Electronic Chemicals segment helped drive solid earnings per share growth on a year-over-year basis.”
Electronic ChemicalsElectronic Chemicals sales increased 2.9% year/year to $39.5 million in the fiscal first quarter of 2013, but declined 8.2% from $43.1 million in the fourth quarter of fiscal 2012. Overall 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.