Penford Posts Higher Q3 Profit - Quick Facts

(RTTNews) - Penford Corp. (PENX) reported higher third-quarter net income of $3.1 million, or $0.24 per share, versus $2.06 million, or $0.16 per share, a year before.

Consolidated sales for the quarter were $119.4 million, compared with $121.7 million last year, mainly because lower corn prices that were passed through to paper industry customers reduced industrial starch and by-products revenue.

The company's gross margin improved, benefiting from higher Industrial Ingredients profitability. Consolidated operating income increased 15% to $4.9 million.

According to the company, the recent quarter's results included a one-time $1.0 million non-operating gain in the Industrial Ingredients division. The firm satisfied conditions of a forgivable government loan and had the remaining repayment obligations waived. The loan was extended following the 2008 flood event that impacted the Company's operations in Cedar Rapids.