US sugar refiner Imperial Sugar has admitted it is considering more disposals after reporting annual losses of over US$53m.
Imperial reported a net loss of $53.4m for the year to 30 September after a $32.5m loss in the fourth quarter of the year.
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The company’s annual net sales fell 6.6% to $848m after a 12.5% drop in the fourth quarter to $231.4m. Lower revenues, high raw sugar prices and Imperial’s lack of progress at reducing costs at its Port Wentworth refinery have hit the business.
President and CEO John Sheptor said on Friday (6 January) that the situation had led Imperial to look at whether it had to dispose more of its business. Last month, Imperial sold its stake in the Louisiana Sugar Refining venture to Cargill and Sugar Growers and Refiners.
Sheptor said: “Our operating results and the impact of high sugar prices on working capital have strained our financial resources and we are exploring opportunities to improve liquidity, including potential further asset sales.”
However, Sheptor noted that Imperial was meeting its lending agreements. “We continue to maintain compliance with the terms of our revolving credit agreement and have an open dialog with our lenders. We completed an amendment of our credit agreement in late December, which is designed to provide additional flexibility under the agreement over the next several months.”
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