SOUTHFIELD (WWJ) — Detrex Corp. (Pink Sheets: DTRX) Friday reported second quarter net income from continuing operations of $914,499 or 53 cents a share, up from net income from continuing operations of $584,696 or 34 cents a share a year earlier.
Revenue was $11.2 million, up from $11.1 million a year earlier.
Year-to-date 2013 net income from continuing operations and net income were $1.96 million or $1.13 a share, up from 2012 year-to-date net income from continuing operations of $1.31 million or 76 cents a share.
During 2012 the company sold its Harvel Plastics Inc. subsidiary which resulted in net income after discontinued operations of $17.86 million or $10.38 per fully diluted share for the six months ended June 30, 2012, and net income after discontinued operations of $183,515, 11 cents a share for the second quarter 2012. The company also announced that it will pay a 250-cent quarterly dividend Sept. 3 to shareholders of record as of Aug. 23.
Year-to-date sales in 2013 are $22.4 million compared to $23.4 million in the same period last year. The year-over-year shortfall is primarily the result of sales to a major customer that began to decline after the first quarter of 2012. Sales to new and existing customers have partially offset this reduction in sales.
Earnings improved in the second quarter of 2013 compared to the prior year primarily due to the absence of a $600,000 provision for environmental expense. The company increased the reserve for environmental liabilities to $17.0 million in the fourth quarter of 2012 as the result of an in-depth evaluation of these liabilities, the majority of which were transferred to a third-party in a June 2013 transaction. Year-to-date income from continuing operations was higher in 2013 primarily due to the absence of a $1.2 million environmental charge which was made in the first half of 2012.
“Our sole subsidiary, The Elco Corporation, is working to offset the effects of a market that has softened since the middle of May. We expect that weak demand may continue for several months and are pursuing additional business opportunities including product trials with a number of customers,” said Detrex President and CEO, Tom Mark. “We are beginning to realize the benefits of the liability transfer transaction and are continuing to investigate strategic opportunities to enhance shareholder value.”
Founded in 1925, Detrex Corp. through its subsidiary The Elco Corp. a leading manufacturer of high performance specialty chemicals including additives for industrial petroleum products and high purity hydrochloric acid.