Printer Friendly

MIDWEST GRAIN PRODUCTS ACHIEVES IMPRESSIVE THIRD QUARTER GAIN

 ATCHISON, Kan., May 10 /PRNewswire/ -- Midwest Grain Products, Inc. (NASDAQ-NMS: MWGP), today reported a 33 percent increase in third quarter results compared to the same period the previous year.
 Net income from continuing operations for the quarter, which ended March 31, 1993, was $3,503,000, or 36 cents per share, on sales of $40,784,000. That compares to net income from continuing operations of $2,685,000, or 27 cents per share, on sales of $38,903,000 for the third quarter of fiscal 1992.
 The increase boosted the company's net income from continuing operations for the first nine months of fiscal 1993 to $10,749,000, or $1.10 per share, on sales of $122,894,000. After nine months last year, the company had net income of $8,946,000, or 91 cents per share, on sales of $113,142,000.
 All of the above results are exclusive of sales and income from Midwest Grain's former subsidiary, McCormick Distilling Company, which was sold on Dec. 31, 1992.
 Ladd Seaberg, president and CEO, attributed the third quarter gain to substantial improvements in vital wheat gluten and premium wheat starch volumes during the latter part of the period, as well as a "sharp upturn" in beverage alcohol unit sales and an increase in fuel alcohol volume.
 Seaberg said the company's potential for realizing additional growth earlier in the quarter was hampered by higher raw material costs for wheat and strengthened competition from foreign wheat gluten producers.
 "Throughout the third quarter, our wheat costs consistently hovered above this year's second quarter average," he noted. "Pressure from wheat gluten imports gradually eased," he explained, "but continues to have considerable impact on U.S. production."
 Seaberg stated that growth opportunities for the company's wheat starch, especially its modified varieties, "continue to look very favorable." Midwest Grain recently completed the relocation and expansion of its main laboratory facilities in Atchison to increase research and development capabilities for both starch and gluten, and to strengthen quality control testing processes for all products, he said.
 Seaberg also reported the preparation work the company's major distillery expansion at its Pekin, Ill., plant remains on schedule. The expansion is expected to be completed by 1995, with a sizable portion of the new capacity presently earmarked for fuel alcohol production. However, the company's strategies will continue to focus on developing a growing presence in the beverage and high quality industrial alcohol markets.
 "Although questions remain about the extent of the role that grain- based fuel alcohol will ultimately play in satisfying future Clean Air Act requirements, we continue to have high hopes that there will be a favorable political solution to the dilemma," Seaberg said. Reasons for that hope, he added, "are based on sound scientific evidence that ethanol made from grain is a clean, effective fuel oxygenate."
 Seaberg then emphasized that one of Midwest Grain's major strengths is its "flexibility to produce whatever mix of alcohol is required to optimize the cost effectiveness of overall operations."
 In all of the company's product areas, he said, "We continue to implement strategies and measures to increase our efficiency and service capabilities for the achievement of our long-term growth objectives."
 -0- 5/10/93
 /CONTACT: Steve Pickman of Midwest Grain Products, 913-367-1480/
 (MWGP)


CO: Midwest Grain Products, Inc. ST: Kansas IN: AGR SU: ERN

TW-MH -- DC023 -- 6515 05/10/93 12:46 EDT
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:May 10, 1993
Words:564
Previous Article:BUD BROWN JOINS RUBBERMAID AS SENIOR VICE PRESIDENT, INTERNATIONAL BUSINESS DEVELOPMENT
Next Article:McCLAIN INDUSTRIES ANNOUNCES SALES AND EARNINGS FOR THE SECOND QUARTER AND SIX MONTHS ENDED MARCH 31, 1993
Topics:


Related Articles
MIDWEST GRAIN REPORTS SOLID THIRD QUARTER PRODUCTION; PROFITS AFFECTED BY INCREASED WHEAT COSTS
MIDWEST GRAIN ANNOUNCES FIRST QUARTER EARNINGS
MCCORMICK SALE FINALIZED TODAY
CONDITIONS IMPROVING AT MIDWEST GRAIN AFTER FRUSTRATING FIRST QUARTER, COMPANY SAYS
MIDWEST GRAIN ANNOUNCES DIVIDEND
MIDWEST GRAIN ANNOUNCES DIVIDEND
MIDWEST GRAIN REPORTS SECOND QUARTER RESULTS
Midwest Grain Expects Profits to Return in Second Quarter
Midwest Grain Experiencing Strong Signs of Turnaround After Slight First Quarter Loss
Midwest Grain Posts Second Quarter Profit

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters