Penford posts improved 1st-quarter earnings, revenues

Higher first-quarter sales and net income were reported Monday by Penford Corp., corporate parent of Penford Products in southwest Cedar Rapids.

The ethanol, food ingredient and industrial starch producer recorded consolidated net income of $592,000, or 5 cents per share, for the three months that ended Nov.30, compared with $336,000, or 3 cents per share, for the same period last year. Penford sales rose 25.6 percent to $90.7 million in the first quarter of fiscal 2012 from $72.3 million in the same quarter of fiscal 2011.

Operating income rose to $4.4 million in the three months that ended Nov. 30 from $3 million in the same period of fiscal 2012

Ethanol sales expanded 32 percent to $32.4 million. Market prices for ethanol rose about 25% from a year ago while comparable industry crush margins improved by approximately 10 cents per gallon, or about 15 percent  from last year.

Specialty bio-products sales grew over 40 percent on new business gains, higher volumes at existing accounts and unit pricing.

Separately, Pemford reported last quarter that it had executed a definitive agreement to purchase the stock and certain assets of the business currently operated by Carolina Starches. The company expects to close the transaction this month.