Zep's fiscal 2nd-quarter net income rises

Associated Press + More

ATLANTA (AP) — Zep Inc., which makes cleaners, pest and weed control products and disinfectants, said Monday that its fiscal second-quarter net income rose 9 percent on strong sales in its retail and distribution channels.

The Atlanta company also said it expects its results will continue to improve during the second half of the year as economic conditions get better.

Zep earned $2.4 million, or 11 cents per share, compared with $2.2 million, or 10 cents per share, in the prior-year period.

The results topped the 9 cents per share that analysts polled by FactSet predicted.

Zep said its performance was also helped by an extra day in the quarter and acquisitions.

Revenue for the three months ended Feb. 29 increased 3 percent to $151.7 million from $146.8 million.

Zep said that there was sales weakness in the government, institutional and janitorial markets, but that it was more than offset by strength in the automotive, home improvement retail, vehicle wash, industrial maintenance, repair and overhaul and food processing markets.

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