Imperial Sugar Reports Q3 Loss

NEW YORK - Aug 4/05 - SNS -- Imperial Sugar Company reported a net loss of U.S. $4.5 million on sales of $236.6 million during the third quarter ending June 30, compared to a net profit of $2.33 million on sales of $229.6 million during the same three months of the previous fiscal year.

This dropped the fiscal year to date net income to $974,000 on sales of $702.3 million, compared to net income of $5.1 million on sales of $695.2 million the first nine months of the previous fiscal year.

"The reduced results were primarily the result of a reduced gross margin caused by lower sales prices, higher energy, freight and manufacturing costs and higher SG&A costs, partially offset by lower raw sugar costs, lower interest expense and higher other income," the company explained in releasing its quarterly results.

Domestic sugar volumes increased 6.4% for the quarter, as more aggressive industrial and foodservice selling increased volumes 16.8% and 14.3% respectively, while consumer volumes decreased 14.3% due to competitive pressures in the private label sector. Domestic sales prices were 2.6% lower for the three months ended June 30, 2005 compared to the same period in 2004 reflecting the effects of increased competitive pressures resulting from a surplus of sugar on the market.

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