Penford Corp., operator of an industrial starch and ethanol plant in southwest Cedar Rapids, posted higher second-quarter earnings and revenues compared with the same quarter last fiscal year.
The Centennial, Colo., company reported net income of $1.2 million, or 10 cents per share, for the quarter that ended on Feb. 28, compared with a net loss of $340,000, or 3 cents per share, for the second quarter of fiscal 2012.
Consolidated sales increased 3.3 percent to $89 million in the most recent quarter from $86.2 million a year ago.
Penford reported net income of $2.9 million, or 23 cents per share for the first six months of fiscal 2013, compared with net income of $252,000, or 2 cents per share, for the same period last fiscal year.
Consolidated sales for the first half of fiscal 2013 rose 4 percent, to $183.9 million, from $176.9 million in the first half of fiscal 2012. Operating income increased 9 percent, to $6.6 million, for the first six months of fiscal 2013, from $6 million in the same period last fiscal year.
Revenue from Penford's industrial ingredients business, which has operations in Cedar Rapids, grew by a modest 2 percent to $62.4 million on double-digit growth in industrial corn starch sales as well as sales generated by the Carolina Starches business acquired in January 2012.Revenue gains were partially offset by lower ethanol sales, down 25 percent as the industrial segment shifted production to more attractive starch products. Ethanol margins have been squeezed by higher costs for corn.