Penford Reports Record Sales for Food Ingredients

The Food Ingredients business reported record sales of $19.9 million for the quarter, increasing 20% over last year. Revenue grew by 20% in the quarter.

9 Jul 2010 --- Penford Corporation, a leader in renewable, natural-based ingredient systems for industrial and food applications, reported that consolidated sales for the quarter ended May 31, 2010 were $61.9 million compared with $61.3 million a year ago. Diluted loss per share, including discontinued operations, was $0.51.

Net loss from continuing operations was $5.8 million, or $0.49 per diluted share, compared to a net loss of $4.3 million, or $0.39 per diluted share last year.

Consolidated sales for Q3 were comparable to last year at $61.9 million. Higher volume offset lower selling prices. Lower costs and higher productivity improved results. Gross margin expanded $3.3 million and unit costs declined by 11%. Quarterly operating losses were $4.1 million compared with a loss of $7.1 million last year, excluding net insurance recoveries of $1.1 million in fiscal 2009.

Net loss from continuing operations for the third quarter includes a $1.0 million pre-tax non-cash charge related to unamortized transaction costs from the Company’s prior credit facility, and a $1.6 million pre-tax interest rate swap termination expense.

The Food Ingredients business reported record sales of $19.9 million for the quarter, increasing 20% over last year. Revenue grew by 20% in the quarter from a combination of stronger sales of established products and gains in new business in several areas. Gross margin and operating income increased as unit costs fell 9%. Cost savings programs and higher plant throughput contributed $1.3 million to higher quarter profits.