Penford loss widens in third quarter

by Eric Schroeder
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CENTENNIAL, COLO. — Penford Corp. sustained a loss of $5,452,000 in the third quarter ended May 31. This compared with a loss of $709,000 in the same period a year ago. The most recent quarterly loss included a non-cash pre-tax charge of $2.8 million related to the redemption of the company’s 15% Series

A Preferred Stock and a non-cash tax valuation allowance of $1.8 million.

Third-quarter net sales rose 9% to $92,924,000 from $85,233,000.

Operating income in the company’s Food Ingredients segment totaled $5,362,000, down 3% from $5,517,000 in the same period a year ago. Net sales in the segment were $26,173,000, up 11% from $23,637,000. Penford said sales to the coating, protein, dairy and gluten-free segments rose at double-digit rates.

Within the Industrial Ingredients segment, operating income in the third quarter was $75,000, which compared with a loss of $734,000 in the same period a year ago. Net sales were $66,751,000, up 8% from $61,596,000. Penford attributed the sales gain to stronger volumes as well as contributions from the acquisition of Carolina Starches.

For the nine months ended May 31, Penford sustained a loss of $5,200,000, which compared with a loss of $1,948,000 in the same period of fiscal 2011. Sales in the nine months rose 16% to $269,858,000 from $231,802,000.

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