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MIDWEST GRAIN REPORTS SOLID SECOND QUARTER GAIN FROM OPERATIONS

 ATCHISON, Kan., Feb. 8 /PRNewswire/ -- Midwest Grain Products, Inc. (NASDAQ-NMS: MWGP), today reported that results of operations for its second quarter, which ended Dec. 31, 1992, were considerably higher than the same period a year ago due to continued growth in its vital wheat gluten and alcohol markets and improved sales of premium, wheat starch.
 In addition, the company realized a non-recurring gain from the sale of certain assets of McCormick Distilling Company, Weston, Mo., on the last day of the quarter. Those assets included all property, buildings, equipment and proprietary brand labels.
 Second quarter income from continuing operations was $3,993,000, or 41 cents per share, on sales of $41,993,000. During the second quarter of fiscal 1992, Midwest netted $3,063,000 from continuing operations, or 31 cents per share, on sales of $37,815,000. These results do not include income generated from McCormick operations or the gain from the McCormick sale.
 For the first six months of fiscal 1993, the company had income from continuing operations of $7,246,000, or 74 cents per share, on sales of $82,110,000, compared to net income of $6,261,000, or 64 cents per share, on sales of $74,329,000 for the first half of the previous year.
 Additional mid-year earnings totalling 17 cents per share were generated from the operations and sale of McCormick. That amount, however, was offset by expenses resulting from the implementation of changes in accounting principles pertaining to post-retirement benefits and accounting for income taxes.
 Ladd Seaberg, president and CEO, noted that while the divestiture of McCormick will allow Midwest to place total concentration on its core business of producing specialty food additives and bulk alcohol products, it will cause the company to experience a short-term decrease in sales and profitability. "Additionally," he said, "we are experiencing increasingly higher raw material costs for wheat and strengthened competition from foreign wheat gluten producers, conditions which could have a weakening effect on the current quarter's performance. However, we remain highly optimistic about our potential for long-term growth."
 The company recently announced its plans to double its total alcohol production capacity over the next two years with a major expansion at its Pekin, Ill., plant. The expansion will also give Midwest the capability to double its total wheat gluten capacity by 1997 "while greatly reinforcing our ability to serve customers as the most efficient supplier of high quality products," Seaberg said.
 Proceeds from the sale of McCormick, a Midwest Grain subsidiary since 1950, will be available to help fund the expansion projects, according to Seaberg. He added that the company's financial position "remains very strong," allowing Midwest "to withstand the effects of negative market factors while pursuing long-term strategic goals."
 -0- 2/8/93
 /CONTACT: Steve Pickman of Midwest Grain Products, Inc., 913-267-1480/
 (MWGP)


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

KD -- DC012 -- 4096 02/08/93 12:01 EST
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Publication:PR Newswire
Date:Feb 8, 1993
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