KMG Chemicals Posts Drop In Net Income

HOUSTON (AP) — KMG Chemicals Inc. reported Tuesday a 43 percent decrease in fiscal second-quarter net income, partly due to the higher price of raw materials in inventory.

KMG Chemicals reported net income of $903,000, or 8 cents per share, for the quarter ended Jan. 31, compared with $1.6 million, or 14 cents per share, in the same period a year earlier. Sales were $44.2 million, up 41 percent from $31.5 million in the second quarter of 2008.

The company said higher priced raw materials in inventory affected margins. That resulted in operating income of $2.5 million, compared with $3 million in the second quarter of 2008, the company said. ...