Imperial Sugar Q1 Sales Increase
Published:05-February-2010
By Staff Reporter
Imperial Sugar has reported sales of $173.8m for the first quarter of fiscal 2010 compared to $108.6m for the same quarter previous year. Net income for the quarter was $178.1m compared to net loss of $64m for the previous year quarter.
Higher domestic sugar volumes was primarily due to the result of additional production from the Port Wentworth refinery and higher domestic prices contributed to the 60% increase in sales. In addition, higher raw sugar costs and higher manufacturing costs due to the ramp up of production volume at the Port Wentworth refinery were offset by lower energy and transportation costs.
Due to these factors, operating income rose to $277.6m compared to an operating loss of $1.7m for the same period last year.
Sheptor, president and CEO of Imperial Sugar, said: “Raw sugar prices continue to escalate, compressing refined white sugar margins and creating a challenging environment for our industry and our customers. Prices have risen in response to the imbalance between international supply and demand, depleted domestic and Mexican stock positions and moderate 2009 domestic sugar production. We are encouraging the USDA to announce an increase in the domestic raw sugar import quota prior to April 1, 2010 to ensure an adequate production of refined sugar between now and the 2010 domestic harvest.
“We are excited about the initiation of construction of the new LSR refinery which will create over 500 new construction jobs in the Gramercy, Louisiana area. The February 3, 2010 ground breaking ceremony was an historic event for the Louisiana agribusiness community.”
