Imperial Sugar posts quarterly loss of $12.5 million
July 31, 2008
by FoodBusinessNews.net Staff
SUGAR LAND, TEXAS — The effects of the refinery explosion at Port Wentworth in February weighed heavily on Imperial Sugar’s third-quarter results.
For the quarter ended June 30, the company sustained a loss of $12,516,000, which compared with net income of $7,603,000, equal to 66c per share on the common stock, during the same period of the previous year. Sales for the quarter were $106,887,000, down 51% from $216,356,000 during the same quarter of the previous year.
The most recently quarterly results included a pre-tax charge of $5.2 million related to the explosion.
"As a result of the Port Wentworth incident and depressed industry conditions, we are faced with challenging circumstances that have affected our financial results," said John Sheptor, president and chief executive officer. "However, our employees and customers remain committed to supporting Imperial during this time, and we expect our financial resources and insurance coverage will also provide the necessary backstop needed to progress in the coming months.
"The engineering reports that were commissioned last quarter have now been received, and we are encouraged that the majority of the rebuild costs are now confirmed. Principal construction contracts should be signed within the next 30 to 60 days, and we expect this will enable us to remain on schedule to begin bulk sugar production later this year and complete restoration of our packaging capabilities by mid-summer of 2009."
For the nine months ended June 30, the company suffered a loss of $15,784,000 compared with income of $32,005,000, equal to $3.14 per share, during the same quarter of the previous year.
The company also announced a regular quarterly dividend of 7c per share payable on Aug. 22 to shareholders of record on Aug. 12.