Penford sets new high on Q3 profit
Shares of Centennial, Colo.-based Penford Corp. (Nasdaq: PENX) have reached a fresh 52-week high on news the maker of natural-based ingredient systems for industrial and food applications more than doubled its quarterly profit.
Net income for the third quarter of fiscal 2007 ended March 31 was $5.0 million, or $0.54 per share, compared with a net income of $2.0 million, or $0.22 per share, for the same three months of 2006, the company said before the start of trading. Wall Street was looking for a profit of $0.27 per share, according to Thomson Financial.
Penford’s North American food and industrial segments posted solid growth, while the company’s business in Australia and New Zealand tripled its operating income.
“The third quarter results represent a step-change in performance for Penford,” said Tom Malkoski, President and CEO. “Our Australian business is advancing programs that align costs and resources with sensible initiatives for margin improvement. North America Food Ingredients continues to build its established business while extending technologies into new applications and markets.”
Overall, sales increased 20.61% to $95.4 million, from $79.1 million during the third quarter of fiscal 2006. Gross margins were $18.6 million, up 53.72%, compared with $12.1 million a year earlier.
The company also reported that has expanded the capacity of an ethanol plant in construction in Cedar Rapids, Iowa, to 45 million gallons. The facility is on schedule to be completed by the end of 2007. Work on the plant began in Nov. 2006
At 1:31 p.m. ET shares were up $6.42, or 33%, to $25.80. The previous 52-week high was $21.88, established on Feb 26. The 52-week low of $14.29 was set on Aug. 8, 2006.
