Zep fiscal third quarter profit dips
June 30, 2010 - 0:0
ATLANTA (AP) -– Zep Inc., which makes cleaning, disinfectant and pest control products, said Monday that its fiscal third-quarter net income fell due to increased expenses, although its revenue grew.
For the quarter that ended May 31, Zep earned $5.2 million, or 23 cents per share, compared with $5.4 million, or 25 cents per share, in the year-ago quarter.When excluding one-time items, Zep earned 30 cents per share. Analysts polled by Thomson Reuters expected 26 cents per share.
Revenue rose nearly 25 percent to $153 million; analysts were looking for $153.1 million in revenue.
Expenses climbed too, however. Zep's selling, distribution and administrative expenses climbed 12 percent to $64.5 million, and it also logged a $2 million restructuring charge in the third quarter. The company also reported a larger interested expense than it had in the year-ago quarter.
Zep shares rose 16 cents to $17.35 in after-hours trading, having finished regular trading up 5 cents at $17.19.