Aceto Corp., the Port Washington specialty chemical supplier, reports a turnaround in profitability after a shift in corporate strategy toward finished pharmaceuticals. Much of the improved financial performance came from Aceto's manufacturing subsidiary, Rising Pharmaceuticals.
The company reported after Thursday's market close that its net sales increased to $110.7 million in the quarter ended Dec. 31, up from $85.6 million in the comparable quarter of 2010.
Aceto reports a $4.5-million profit for the recent quarter, compared to a $1.1 million loss in the prior-year period.
The market response to Aceto's earnings sent shares up 17 cents, to $7.71, in heavy trading. The stock's 52-week range is $4.51 to $8.79.
Net sales for the fiscal 2012 second quarter increased 29.2 percent compared to net sales in the fiscal 2011 second quarter, Aceto said. The increase would have been about half that amount -- 15.3 percent -- without Rising Pharmaceuticals.
The company also reported sales increases in its specialty chemicals and agricultural protection divisions.
The company chairman and chief executive, Albert Eilender, said he was pleased with the results but added, “we have always maintained that our business is difficult to project on a quarter to quarter basis, and in this quarter, some of the overall increase in sales can be attributed to earlier than anticipated orders of products across our business segments.”
Aceto bought Rising Pharmaceuticals, of Allendale, N.J., in December 2010.
In August, the company hired a new international senior vice president for active pharmaceutical ingredients, Nicholas Shackley, a chemical engineer trained at the Imperial College of London, with a 25-year background in chemical and pharmaceutical sales and business development.
In October, Aceto's president and chief operating officer Vincent Miata stepped down after a 33-year career there, and was replaced by a member of its board, Sal Guccione, a former private equity investment executive with a bachelor's in chemical engineering and an MBA in finance. That same month it added a new board member with a strong pharmaceuticals background.
Above, Aceto's Albert Eilender
Read more of Inside Long Island Business