Penford Corp., developer of renewable ingredient systems for industrial and food applications, today reported its third quarter fiscal 2011 results, posting an increase in sales and a narrower loss. Penford operates through two segments: Industrial Ingredients and Food Ingredients.
Consolidated sales for the quarter ended May 31, 2011, increased 38 percent to $85.2 million compared to consolidated sales of $61.9 million in the year ago quarter. The company attributes the increase to improvements in ethanol volumes and pricing.
Consolidated income from operations for the third quarter increased to $2.5 million compared to an operating loss of $4.1 million in the third quarter of 2010.
The company achieved record quarterly sales of its Food Ingredients segment, up 19 percent to $23.6 million compared to the third quarter of the year prior. The unit reported a 10 percent increase in third quarter operating income to $5.5 million compared to $5.0 million for the comparable quarter of 2010.
The company’s Industrial Ingredients division reported a 47 percent increase in sales to a record $61.6 million compared to $42.0 million reported for the third quarter of 2010. The unit reported an operating loss of $0.7 million for the quarter compared to an operating loss of $6.8 million for the comparable quarter of 2010.
As of May 31, 2011, Penford reported cash flow from operations at $1.7 million, including a $4.4 million contribution to the company’s pension plans.
Outstanding bank debt on the company’s $60 million revolving credit facility was reported at $22.9 million.
For more information visit www.penx.com
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