Imperial Sugar Reports First Quarter Profit

SUGAR LAND - Feb 11/04 - SNS -- Imperial Sugar Company reported a net income of $3.5 million or $0.32 per diluted share for the current quarter for its 2004 fiscal first quarter ended December 31, 2003, compared to a $5.5 million or 55 cent per share loss during the same quarter last year.

Net sales dropped 11.4% from the previous year to $256.0 million during the quarter. This decline was due to a 14.9% decrease in sugar sales volumes, resulting primarily from the closure of the Sugar Land refinery as well as competitive pressures, offset by a 3.2% increase in sugar prices.

For the three months ended December 31, 2003, gross margin as a percentage of sales increased to 8.3% compared to 7.2% for the same period last year. This margin improvement was primarily driven by higher prices and efficiencies gained in closing the Sugar Land refinery, partially offset by increases in raw sugar and natural gas costs. Operating income for the first quarter was $6.3 million compared to a loss of $0.9 million (including asset sales, impairment and other costs of $1.4 million) for the same quarter one year ago.

Selling, general and administrative expense decreased $3.6 million or 24% in the quarter compared to the same quarter of the previous year. This decrease was related to professional service fees incurred during the restructuring of the Company's capital requirements in the prior year, as well as lower medical, pension and retiree medical costs this year.

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