Dakota Growers Pasta income up in second quarter

by Eric Schroeder
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CARRINGTON, N.D. — Net income of Dakota Growers Pasta Co. in the second quarter ended Jan. 31 was $1,497,000, equal to 11c per share on the common stock, up 142% from $617,000, or 1c per share, in the second quarter of fiscal 2006.

Net revenues of the company were $47,174,000, up 11% from $42,490,000 in the second quarter of the previous year.

For the first six months of fiscal 2007, net income was $2,391,000, or 17c per share, up sharply from $1,016,000, or 4c per share. Revenues for the six months were $96,106,000, up 11% from $86,562,000.

"The increase (in revenues) resulted from higher pasta per unit selling prices and higher pasta sales volumes," the company said in a 10-Q report filed March 19 with the Securities and Exchange Commission. "Benefits derived from increased sales were partially offset by higher durum costs. Durum prices have increased significantly during fiscal year 2007 when compared to fiscal year 2006 prices. The company has generally been successful in obtaining sales price increases to offset the higher durum cost. However, the company is uncertain whether it will be able to pass through higher durum or other input costs on a timely basis in the future. Higher mill byproduct sales prices in fiscal 2007 have also helped to offset the negative impact of higher durum costs."

Overall, Dakota Growers said pasta sales volumes for the second quarter increased 4.5% along with an increase in pasta per unit selling prices of 4.7%. Revenues from the retail market rose $1,300,000, or 6.1%, while food service revenues climbed $500,000, or 4.5%. Ingredient sales jumped $1,900,000, or 29%, during the quarter.

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