KMG says weak results at 2 of its units in 3rd quarter will hurt fiscal-year earnings
HOUSTON (AP) -- Specialty chemicals maker KMG Chemicals Inc. said Wednesday that due to lower-than-expected sales at two of its segments, it expects fiscal 2008 earnings to fall 10 percent to 20 percent from the same quarter a year ago.
The guidance implies a profit of 64 cents to 72 cents per share. Analysts polled by Thomson Financial predict a profit of 99 cents per share for the fiscal year ending in July.
The company said it expects full-year sales to exceed $135 million, but sales were lower than expected in the third quarter for its Penta and Animal Health segments.
The company predicts fourth-quarter earnings will rise "significantly" form a year ago, but not enough to completely offset the expected decline in the fiscal third quarter.
Houston-based KMG said Animal Health business is seasonal, and was hurt by cooler than normal weather in some parts of the U.S.
Shares fell 25 cents to $12.24 during aftermarket electronic trading. They earlier rose 44 cents, or 3.7 percent, to close at $12.49.
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