Penford Reports Strong Rise in Sales

Food Ingredients reported record quarterly sales of $23.6 million, up 19% from the prior year on growth in existing accounts and from new product introductions in the companion pet and gluten-free bakery segments.

7/8/2011 --- Penford Corporation, a leader in renewable ingredient systems for industrial and food applications, reported that consolidated sales for the quarter ended May 31, 201l increased 38% to $85.2 million from $61.9 million a year ago. Loss from continuing operations was $0.7 million, or $0.06 per diluted share, for the quarter ended May 31, 2011 compared with a loss from continuing operations of $5.8 million, or $0.49 per diluted share last year. Third quarter fiscal 2011 results reflect an increase in accounts receivable reserve of $0.6 million in the Industrial Ingredients business.

Food Ingredients reported record quarterly sales of $23.6 million, up 19% from the prior year on growth in existing accounts and from new product introductions in the companion pet and gluten-free bakery segments. Gross margin improved 10% on new product gains and lower unit processing costs. Operating income reached an all-time quarterly record of $5.5 million compared with a previous record of $5.0 million one year ago.

Revenue for Industrial Ingredients increased 47% to a record $61.6 million from $42.0 million a year ago reflecting higher corn prices that were passed through to customers, additional ethanol volumes and growth of specialty starch-based additives.