MIDWEST GRAIN POSTS STRONG FIRST QUARTER
MIDWEST GRAIN POSTS STRONG FIRST QUARTER ATCHISON, Kan., Nov. 6 /PRNewswire/ -- Midwest Grain Products,
Inc. (NASDAQ-NMS: MWGP), posted strong first-quarter earnings, principally as the result of a large increase in unit sales of vital wheat gluten, according to Ladd Seaberg, president and CEO.
The company's net income for the quarter, which ended Sept. 30, was $3,429,000, or 53 cents per share, on sales of $54,513,000, up slightly from preliminary results announced on Oct. 18. Net income for the same period a year ago was $2,287,000, or 35 cents per share, on sales of $45,910,000. After experiencing a decline in profitability in fiscal 1990, the company made progressive gains in each quarter last year as conditions improved initially in its alcohol markets and later in its vital wheat gluten market. The continuing surge in wheat gluten sales during the first three months of fiscal 1992 resulted in a 49 percent unit volume increase compared to the first quarter of fiscal 1991. "This was accomplished by aggressive marketing and our ability to serve customers with increased efficiency," Seaberg said. He added that "we expect to enhance this ability even more when we complete the expansion of our gluten production facility at out Atchison plant in late spring." That project will give the company 25 percent more gluten-production capacity. At the same time, a new gluten drying unit is being installed at Midwest's plant in Pekin, Ill., with completion scheduled for the end of January. Because larger amounts of flour were required from the company's mill to produce enough gluten, flour production jumped 37 percent in the first quarter compared to a year ago. First quarter unit sales of premium wheat starch were 17 percent higher than last year, Seaberg said, "as we have continued to be successful in our ongoing efforts to identify and penetrate new markets for this product." While the company experienced price declines in its beverage and fuel alcohol markets compared to last year's first quarter levels, total unit sales of alcohol increased, "contributing immensely to the cost effectiveness of our overall operations," Seaberg noted. In the fuel alcohol category, unit sales jumped 34 percent above a year ago. High quality industrial alcohol unit sales climbed 19 percent, with pricing up just slightly for this product. Beverage alcohol unit sales decreased 11 percent compared to last year's first quarter, but were nearly equal to fiscal 1991's fourth-quarter level. The company presently is replacing an older distillery cooker at its Atchison plant to improve energy conservation and increase alcohol production efficiency. Seaberg said this project will be completed in the next few month and will allow the company to proceed with plans to expand its high quality alcohol production capacity. Summarizing his outlook for the company, Seaberg said, "We remain optimistic about the future, and feel we are in an excellent position, strategically and financially, to achieve long-term growth objectives." -0- 11/6/91 /CONTACT: Steve Pickman of Midwest Grain Products, 913-367-1480/ (MWGP) CO: Midwest Grain Products, Inc. ST: Kansas IN: SU: ERN MH -- DC022 -- 1743 11/06/91 12:59 EST
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|Date:||Nov 6, 1991|
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