Aceto 4Q profits, sales surge

Aceto Corp. reported sharply higher profits and sales for the April-June quarter as drugmakers used more chemical compounds supplied by the Port Washington company.

Aceto said Wednesday it earned a fiscal fourth-quarter profit of $5.4 million, up almost 36 percent from the same period a year ago.

Sales in the quarter rose 11 percent, year over year, to $123 million.

Chief executive Sal Guccione attributed much of the growth to the Rising Pharmaceuticals subsidiary, a supplier to manufacturers of generic drugs. Aceto bought Rising in December 2010.

"Recent product launches from Rising Pharmaceuticals continue to fuel the segment's growth," he said, referring to sales to drugmakers.

For the full year ended June 30, Aceto earned $22 million, an increase of 31.5 percent from fiscal 2012. Sales climbed more than 12 percent to a record $500 million.

The earnings report was released after the stock markets closed for the day. Aceto shares had closed up 57 cents, or about 4 percent, to $15.61 in Nasdaq trading.

Its shares have increased more than 50 percent this year.

Investor interest in the 66-year-old company has risen recently with its aggressive move into the rapidly growing pharmaceuticals industry. It also supplies chemicals used in farming, textiles, paint and fuel.

Aceto buys chemicals in China, India and other countries and then provides them to manufacturers.

The company's board of directors on Wednesday declared a quarterly dividend of 6 cents per share, which will be paid on Sept. 27 to shareholders.

About 230 people work for Aceto, which moved to Port Washington from Lake Success in 2011.

It had considered leaving for Pennsylvania but was persuaded to stay after New York State offered a nearly $500,000 grant toward the purchase and renovation of a new headquarters.