| NEW YORK, Dec 14 (Reuters) - Imperial Sugar Co. (AMEX:IHK -
news), the largest U.S. processor of refined sugar, on Thursday reported a
fourth-quarter loss that was wider than the loss reported a year earlier.
In addition, the Sugar Land, Texas-based company said it is considering
Chapter 11 filing as a restructuring option. It received an interim waiver
for a December interest payment, and was in talks with creditor groups
because it was not in compliance with certain financial covenants under
its senior credit agreement.
The company said its net loss for the quarter ended Sept. 30 was $37.1
million, or $1.15 per diluted share, compared with a loss of $8.6 million,
or 27 cents, in the corresponding period last year. The results include
after-tax charges of $17.9 million, or 55 cents per share, related to
discontinuation of sugar beet processing at two factories and refining at
a third plant.
Net sales for the quarter were $457.2 million, compared with $487.9
million for the year-ago period. Net sales in both the company's sugar and
foodservice segments decreased primarily as a result of lower sales prices
for refined sugar, the company said.
Gross margin in the quarter decreased to $19.4 million, or 4.2 percent
of net sales, from $39.9 million, or 8.2 percent of net sales, reported in
the same period a year ago. The decrease was attributed to significantly
lower sales prices for refined sugar as well as higher energy costs, which
more than offset benefits from lower raw sugar costs. |