Russell down as Imperial Sugar sales fall
Shares of Sugar Land, Texas-based Imperial Sugar Company (Nasdaq: IPSU) are trading south of the flat line on news of a decline in quarterly sales, even though net income beat analysts’ projections. At 10:07 a.m. ET shares were up $2.63, or 8.84%, to $27.13.
Meanwhile, the Russell 2000 was down 5.60 points, or 0.69 percent, to 808.97.
Net sales for the quarter ended March 31 were $212.6 million, a decline of 3.9% when compared with sales of $221.3 million in the same quarter of 2006. Imperial Sugar attributed the decline to a decrease in domestic sugar volumes and prices, which were inflated due to the disruption of competitors’ operations following hurricane Katrina in the fall of 2005.
However, quarterly net income was $8.7 million, or $0.74 per share, compared with $7.1 million, or $0.63 per share, a year earlier. That’s above analysts’ estimated earnings of $0.71 per share.
“We are pleased with the results for our second fiscal quarter, and particularly the strong industrial and branded consumer volumes in the face of current domestic supply conditions,” President and CEO Robert A. Peiser said in a statement before the opening bell. “We have been able to sustain margins and operating profits at above average levels in spite of weaker market pricing.”
Industrial Sugar said it expects that low energy and raw sugar costs will offset the decreasing prices of refined sugar. As a result, the company said it believes its profit outlook for the fiscal year will be better than historical averages, but did not release specific figures.
