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Penford Corp. (PENX) Reports Quarterly Financials

Penford Corp., a leader in renewable ingredient systems for industrial and food applications, yesterday reported its second-quarter results for the quarter ended February 28, 2011.

The company reported that its revenues increased 19 percent to $74.3 million from $62.3 million a year ago. Loss from continuing operations was $1.6 million, or $(0.13) per diluted share, for the quarter ended February 28, 2011, compared with a loss from continuing operations of $1.8 million, or $(0.17) per diluted share last year.

Penford’s Food Ingredients segment reported record second quarter sales, up 9 percent from the prior year. The company attributes the increases to volume gains and product mix changes in response to strong demand for high performance applications as well as better prices on less modified products.

Gross margin improved 11 percent from last year, which the company attributes to higher revenues and stable total unit costs. Operating income increased 26 percent from a year ago on top-line gains and lower costs.

Industrial Ingredients Results revenue grew 23 percent to $56.6 million in fiscal 2011 from $46.1 million from a year ago on higher average selling prices for industrial starches as well as increases in fuel ethanol volumes and pricing.

Gross margin expanded 19 percent from the prior year despite higher net corn costs. Higher prices and stronger throughput rates as well as lower manufacturing costs helped offset increased input costs.

The company reported that consolidated gross margin increased 13 percent to $6.8 million and consolidated operating income rose $1.6 million to $0.5 million from an operating loss of $1.1 million in the same period last year.

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