Rocket fuel sales increase reported by LV firm

Las Vegas chemical maker American Pacific Corp. on Thursday reported improved earnings and sales in the company's first fiscal quarter, which ended Dec. 31.

Earnings jumped from $566,000, or 7 cents a share in the year-ago quarter, to $3.3 million, or 40 cents a share. Quarterly sales increased from $11.3 million last year to $18.9 million.

The increases were boosted mainly by the company's $39 million takeover in 1998 of the rocket fuel ammonium perchlorate business from competitor Kerr-McGee Chemical Corp.

Ammonium perchlorate sales jumped from $5.6 million in last year's quarter to $12.5 million this year.

"The first quarter was actually a little bit stronger than we're going to see in later quarters," Chief Financial Officer David Keys said in a conference call with investors.

Though perchlorate sales jumped, sales of sodium azide, a chemical used in automobile air bags, and of halotron, a chemical used in fire extinguishers, were flat in the quarter. Sodium azide is being phased out by other technologies, and halotron is having problems catching on in some markets, executives said.

Keys said no decisions have been made in the company's review of its strategic alternatives with an investment banker. American Pacific has said it is considering a variety of options including internal growth, acquisitions, mergers, a sale or stock buy-back program.

The company bought back 42,100 shares in the quarter, at a cost of about $300,000. In the call, executives said the company bought back about $5 million of its debt in September. The executives would not elaborate on when or if they will buy back additional shares or debt.

American Pacific also reported $1.7 million in real estate sales for the quarter, unchanged from last year's quarter. The company owns more than 300 acres in Clark County.

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