Imperial Sugar Returns to Profit

NEW YORK - Aug 2/06 - SNS -- Imperial Sugar Company reports net income of U.S. $15.2 million on sales of $231.3 million during the third quarter ending June 30, compared to a loss of $4.5 million on sales of $191 million during the same three month period last year.

This lifted net income for the first nine months of the current fiscal year to $34.3 million on sales of $706.5 million, compared to a net income of $974,000 on sales of $577.2 million during the first three quarters of the previous fiscal year.

In releasing its results, Imperial Sugar noted, "Domestic sugar prices increased 23.1% while domestic sales volumes were relatively unchanged. The higher prices and margins are a result of favorable domestic sugar market conditions which was driven by a tight domestic supply caused by a smaller domestic sugarbeet crop and the impact of last year's Gulf Coast hurricanes on the cane sugar industry.

"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 16.1% and 37.5%, respectively. Industrial prices, which tend to lag market trends because of the fixed price forward sales contracts, increased 23.5% from the prior year, as many of those older contracts negotiated prior to the significant increases in market prices last summer expired. This contract driven price lag effect, which has resulted in rising quarter-over-quarter realized industrial sales prices, largely matured in the third fiscal quarter."

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