Aceto Corp., the Port Washington-based chemical supplier, said Thursday that its second-quarter revenue rose on increased sales to pharmaceutical makers.
The company, whose chemicals are used in generic drugs and a wide variety of other products, said overall sales climbed 2.9 percent to $114 million during October, November and December compared to the same period last year. Net income slipped 1.6 percent to $4.5 million, or 17 cents a share, as the company's selling, general and administrative expenses rose.
"Looking at the balance of the year, we remain well positioned for continued growth in sales and profitability," chief executive Sal Guccione said.
Shares of Aceto, with about 230 employees, have been among the best performers for Long Island companies in the past year, providing investors with a total return of 31.71 percent, including stock price gain and dividends, according to data from Bloomberg. The company's stock closed Thursday at $9.99 a share, up 0.60 percent.
Much of that growth has stemmed from ingredients used to make generic drugs. During the second quarter Aceto's sales of pharmaceutical ingredients increased by 2.9 percent.
The company buys chemicals around the globe, then sells them to manufacturers. Aceto says it is among the largest buyers of pharmaceutical and other chemicals for export from Asia.
Aceto also sells chemicals used to make plastics, textiles, fuels, dyes, lubricants and circuit boards. Those sales were down 1.1 percent in the second quarter.
The performance of Aceto's non-pharmaceutical ingredients can provide insight into the global economy, said Daniel Rizzo, a chemical industry analyst with Sidoti & Co.
The chemicals "go into a lot of different products," Rizzo said. "A rebound for those chemicals shows things could be getting better in the wider economy."