Imperial Sugar has recorded a loss in the first nine months of its fiscal year, hurt by competition and the rising cost of raw sugar.
For the period to the end of June, the US refiner reported a net loss of US$20.8m compared to a net income of $139.2m. The firm said Friday (5 August) that the loss was primarily the result of higher sales prices which increased more than raw sugar costs.
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The company made an operating loss in the period of $31.7m compared to an operating profit of $213.5m last year. Sales dropped 4.2% to $616.5m.
In the third quarter, Imperial Sugar saw its net losses widen to $16.1m compared to a net loss of $5.7m a year earlier. Operating losses also widened to $22.6m from $9.4m last year. Sales slid 24.5% from $197m.
“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 Imperial Sugar president and CEO John Sheptor. “Raw sugar purchased during the quarter was priced largely against the March and May futures contracts, which peaked near $40 per hundredweight prior to the USDA import quota announcement in early April.”
