Imperial Sugar Profits Improve

NEW YORK - May 4/06 - SNS -- Imperial Sugar Company reported net income of U.S. $7/132 million on sales of $221.264 million during the second quarter ending March 31, compared to a net loss of $1.074 million on sales of $171.492 million during the same three month period last year.

This lifted net income for the first half of the current fiscal year to $19.118 million on sales of $475.25 million, compared to a net gain of $5.469 million on sales of $386.198 million the first half of the previous fiscal year.

Prices for the quarter were up sharply from the prior year in each of the three domestic market channels that Imperial serves. Consumer and foodservice prices increased 11.5% and 29.4%, respectively. Industrial prices, which continue to lag market trends because of the continuing presence of fixed price forward sales contracts entered into prior to last summer, nevertheless increased 15.3% from the prior year, as many of those older contracts expired, enabling newer contracts to become a larger portion of the overall mix of business.

For the three months ended March 31, 2006, gross margin as a percentage of sales increased to 11.4% compared to 4.9% in the prior year quarter. The increase in the current year's gross margin percentage is primarily due to increased domestic sugar sales prices, partially offset by higher raw sugar, energy, freight and manufacturing costs.

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