KMG Chemicals, Inc. (NYSE: KMG), a global provider of specialty chemicals in select markets, today announced financial results for the fiscal 2013 second quarter ended January 31, 2013.
2013 Second Fiscal Quarter Highlights
- Net sales were $57.0 million, down 15.0% from the comparable quarter in fiscal 2012, reflecting reduced demand within our Electronic Chemicals and Wood Treating Chemicals businesses.
- Gross profit margins increased to 27.6%, from 25.6% in the second fiscal quarter of 2012.
- Operating income declined to $3.2 million, from $4.9 million in the same period a year ago.
- Diluted earnings per share were $0.14 vs. $0.21 per share in last year’s second fiscal quarter.
- Electronic Chemicals segment operating margins (after corporate allocations) improved slightly to 6.8% vs. 6.5% in the second fiscal quarter of 2012.
- Wood Treating Chemicals segment operating margins (after corporate allocations) declined to 10.5% vs. 11.5% in last year’s second quarter.
Neal Butler, President and CEO of KMG, commented, “Weakness in North American semiconductor production and reduced demand for our wood treating chemicals caused our second quarter results to come in below our original expectations. Additionally, expenses associated with the advancement of our consolidation strategy weighed on our bottom line results. Despite the challenging operating environment and the related impact to our shipment volumes, our gross profit margins increased by 200 bps on a year-over-year basis, reflecting benefits from our targeted pricing, cost savings and efficiency improvement initiatives undertaken over the past twelve months.”
Electronic ChemicalsElectronic Chemicals sales were $35.6 million, down $3.0 million, or 7.8%, as compared to $38.6 million for the prior year period. The sales decline reflected reduced volumes as semiconductor manufacturers reduced inventories and slowed production in response to softer consumer demand for high-tech electronic devices.