SUGAR LAND, TEXAS — High raw sugar costs and lower volumes led to an even wider loss for Imperial Sugar Co. during the third quarter.
For the third quarter ended June 30, the company suffered a loss of $16,084,000, which compared with a loss of $5,687,000 during the same quarter of the previous year. Sales for the quarter were $196,985,000, down 25% from $260,978,000 during the same quarter of the previous year. Much of the reduction in sales was the result of the loss of direct sales volumes from the Gramercy refinery.
“Our inability to increase prices in the face of higher raw sugar costs because of competitive pressures from domestic and Mexican sources was the principal driver of the quarter’s disappointing results,” said John Sheptor, president and chief executive officer. “Raw sugar purchased during the quarter was priced largely against the March and May futures contracts, which peaked nearly $40 per hundredweight prior to the U.S.D.A. import quota announcement in early April. The subsequent decline in the raw sugar futures market that occurred after the quota announcement was only temporary, and the raw market has rallied back to near the same level. Our raw sugar costs in the fourth fiscal quarter should see little relief, while sales prices thus far in the fourth quarter have only improved modestly.”
For the nine months ended June 30, the company sustained a loss of $20,844,000, which compared with income of $139,165,000, equal to $11.79 per share on the common stock, during the same period of the previous year. Sales for the period were $616,540,000, down 4% from $643,620,000.