Imperial Sugar Profit Nearly Double

NEW YORK - Feb 3/05 - SNS -- Imperial Sugar Company reported net earnings of U.S. $6.543 million on sales of $260.029 million during the three months ending December 31; a major improvement on the net earnings of $3.513 million reported on sales of $255.998 million during the same period one year earlier.

The company said the first quarter sales increase for the 2005 fiscal year was mainly due to higher consumer and foodservice sales volumes of 3.9% and 11.2% respectively, even though they were partially offset by a 1.0% decline in prices.

"A continuing surplus of sugar on the market as a result of a large domestic sugarbeet crop has resulted in increased competitive pressures and a reduction in sales prices in the three months ended Dec. 31, 2004 versus 2003," Imperial Sugar said.

The Company's gross margin as a percentage of net sales decreased to 7.2% in the quarter ended Dec. 31, 2004, compared to 8.3% for the same period last year. In addition to the 1.0% decline in sales prices, this margin reduction was driven primarily by higher energy costs, increased costs for warehousing and manufacturing, as well as a shift in the product mix.

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