American Pacific posts increases in profit, gross margin

American Pacific Corp. of Las Vegas Thursday said it turned a second-quarter profit as its gross profit margin increased for special chemicals, fine chemicals and aerospace equipment segments.

But the company’s most dramatic opportunity may come in a few years as NASA starts its next phase of manned space flight.

“We have been identified as part of that team that will provide (aerospace) equipment and propellant for manned space flight,” American Pacific Chairman and Chief Executive Officer John Gibson said in a telephone interview.

NASA intends to wind down the shuttle flights after 2010 and is preparing to start another phase of manned space flight by 2014 or 2015, Gibson said.

“A lot of it depends on what Congress wants to do,” he said.

The company earned $118,000, or 2 cents per share, in the quarter ended March 31, reversing a loss of $2.3 million, or 36 cents per share, a year earlier.

Operating income increased to $6.1 million versus a $1.1 million loss last year. American Pacific took a $2.8 million charge or 24 cents a share for environmental cleanup last year. But the company this year reported a charge of 21 cents for per share for $2.6 million in refinancing expenses.

Quarterly revenue rose 9.5 percent to $43.6 million from $39.8 million.

Over the last 18 months, American Pacific has been integrating its acquisition of its fine chemicals segment, which provides ingredients for drugs, and its aerospace equipment unit into the company.

“Both took some time to integrate fully, and now I think we will enjoy the benefits,” Gibson said.

“Fine chemicals and aerospace equipment have great potential going forward (for profit growth),” he said.

Specialty chemicals, which include space ship propellant, is “stable, provides good cash flow, but we do not expect to grow that business,” Gibson said.

American Pacific shares rose 66 cents, or 5.14 percent, Thursday to close at $13.50 on Nasdaq National Market.