Imperial Sugar Co., the US sugar refiner, today (15 December) posted a full-year loss due to costs linked to the explosion at a refinery in Georgia in February.
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The company booked a net loss from continuing operations of US$21.2m for the year to 30 September, against income from continuing operations of $43.6m a year earlier.
Imperial said the explosion at its Port Wentworth facility earlier this year, which killed 13 workers, had cost the company $63.3m during the fiscal year. Insurance recoveries totalled $36.1m.
Net sales for the year were down at $592.4m against $875.6m a year earlier. Lower sales volumes due to the Port Wentworth explosion and lower sugar prices earlier in Imperial’s fiscal year weighed on the company’s performance it said.
For the fourth quarter of its fiscal year, Imperial posted a net loss from continuing operations of $5.4m, compared to income from continuing operations of $7.8m a year ago. Fourth-quarter net sales stood at $124.8m compared to $219.6m a year earlier.
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By GlobalDataPresident and CEO John Sheptor was upbeat about the year ahead and said the rebuilding of the Port Wentworth facility would improve the company’s performance.
“We expect that our Port Wentworth rebuild and refocus on various business initiatives will bring improved future results,” Sheptor said.
“When completed, our state-of-the-art Port Wentworth packaging facility will operate more efficiently and reliably while offering enhanced product quality and service.”
Imperial said construction costs for the new Port Wentworth facility stand at an estimated $200-220m. Limited production started in the autumn, while the company expects to begin manufacturing bulk granulated sugar early next year.
“We are encouraged by recent improvements in sugar prices as we enter the new year,” Sheptor said. “Our liquidity, lack of debt and capital resource position strengthens our ability to effectively manage our business through industry cycles.”
Shares in Imperial were up 4.56% at $12.85 at 13:24 ET today.
