Aceto (NASDAQ:ACET), which manufactures pharmaceutical intermediates, active ingredients, and other specialty pharmaceuticals, announced Friday its fourth quarter profits slipped despite higher revenues, as costs related to its Environmental Protection Agency (EPA) registration and other expenses weighed on earnings.
Still, the company's full year results improved as each of Aceto's business segments showed year-over-year sales growth.
For the three months ending June 30, the company's net income slipped 17.6% to $3.49 million, or $0.13 per share, compared to $4.24 million, or $0.17 per share, in the same period a year ago.
Aceto said additional compensation related to the hiring of more personnel, its involvement in year-end performance awards, and costs arising from the EPA registration of its herbicide product, Glyphosate, caused the decrease in its fourth quarter earnings.
For the full fiscal year, however, the company posted net income of $8.97 million, or $0.34 per share, compared to $6.58 million or $0.26 per share. Adjusted for certain one-time items, profits rose 26% to $12.25 million, or $0.47 per share.
Analysts had expected 12-cents in earnings for the fourth quarter, and $0.46 in earnings for the full year.
Revenues improved 14.6% to $121.2 million in the fourth quarter, and increased 19% in the full year to $412.4 million.
The company's health sciences business saw a 19.5% increase in sales for the full year, largely from its domestic health sciences group, and the addition from Rising Pharmaceuticals, which Aceto acquired in January 2011.
Aceto's specialty chemicals segment saw an 18.1% increase in revenues for the full year, as the sale of surface coating chemicals increased, as did the sale of dyes, pigments, and miscellaneous intermediates.
Revenues from its agricultural protection productions unit hiked 19.7% in 2011, on higher sales volume.
Aceto's stock on the Nasdaq Exchange rose 1.76% as of 9:32 am EDT, to trade at $5.20 per share.