CARRINGTON, N.D. — Net income of Dakota Growers Pasta Co. in the third quarter ended April 30 was $1,741,000, equal to 17c per share on the common stock, down 8% from $1,882,000, or 14c per share, in the third quarter of fiscal 2007.
Net revenues of the company were $78,538,000, up 70% from $46,084,000 in the third quarter of the previous year.
For the first nine months of fiscal 2008, net income was $5,019,000, or 46c per share, up 17% from $4,273,000, or 32c per share, in fiscal 2007. Revenues for the nine months were $195,330,000, up 37% from $142,190,000.
"The increase (in revenues) resulted from higher pasta per unit selling prices and, to a lesser extent, higher mill sales prices," the company said in a 10-Q report filed June 16 with the Securities and Exchange Commission. "Benefits derived from higher selling prices were partially offset by higher durum costs. Durum prices have continued to increase significantly during fiscal year 2008 when compared to fiscal year 2007 prices.
"The company has been successful in obtaining sales price increases to offset higher durum and other input costs. However, if the company is unable to pass through higher durum, other input costs or transportation costs on a timely basis, our financial results may be adversely affected."
Overall, Dakota Growers said pasta sales volumes for the third quarter increased 11.2% along with an increase in pasta per unit selling prices of 43.6%. Revenues from the retail market rose $9,500,000, or 46.7%, while food service revenues climbed $4,500,000, or 32.3%. Ingredient sales jumped $11,300,000, or 139.3%, during the quarter.
Dakota Growers Pasta is the third-largest pasta manufacturer in North America, operating two production plants in Carrington and New Hope, Minn.