Materials distributor Nexeo Solutions posted a profit in the first half of its 2018 fiscal year after recording a loss in that same period a year ago.
Nexeo, based in The Woodlands, Texas, reported a profit of $26.9 million for the six months ended March 31. The firm had lost $9.4 million during that period in fiscal 2017.
For the three months ended March 31, Nexeo's total sales grew 13.5 percent to $1.04 billion. The firm's gross profit grew almost 13 percent to almost $116 million in the same comparison.
Nexeo's plastics sales grew almost 8 percent to just under $517 million in those three months. Gross profit in plastics grew almost 3 percent to $47 million.
Plastics was the larger of Nexeo's two main operating units — the other being chemicals — in the three months ended March 31, generating almost 50 percent of total sales.
In a May 9 news release, Nexeo officials credited higher selling prices with the plastics sales boost. They added that plastics sales volume in pounds was down 4 percent for the quarter, as the firm exited low margin and unprofitable business in North America and Asia.
President and CEO David Bradley said in the release that Nexeo's operating platform, strategy and team "continues to deliver above-market performance" for the firm's stakeholders.
On Wall Street, Nexeo's per-share stock price began 2018 around $9.40 and was near $9.50 in late trading May 14 for an increase of just over 1 percent.
Nexeo is one of North America's largest distributors of plastics materials, distributing resins, compounds and concentrates for more than 20 suppliers.