BRIDGEWATER, MA -- Chase Corp. reported fiscal third-quarter net income from continuing operations fell 23% year-over-year to $2.97 million.

For the quarter ended May 31, sales dropped 2% from last year to $32.6 million.

Net income was $4.40 million in the prior year period due to income from discontinued operations.

Last year's figures include Chase's contract electronics manufacturing services business, which was sold to MC Assembly in a deal that closed June 30, 2010.

Chairman and chief executive Peter R. Chase said, “The effect of the sale of Chase EMS during fiscal 2010 complicates the year-to-year comparison. The major factors behind the decline in profits for the third quarter in comparison to the previous year are: a drop in custom product sales to the construction and building sectors, increased R&D and marketing expenditures and, most significantly, rising raw material costs. We anticipate this trend continuing in the fourth quarter."

Chase sells tapes, laminates, sealants and coatings, including conformal coatings under the Humiseal brand.