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MIDWEST GRAIN REPORTS STRONG SECOND QUARTER EARNINGS

 MIDWEST GRAIN REPORTS STRONG SECOND QUARTER EARNINGS
 ATCHISON, Kan., Feb. 5 /PRNewswire/ -- Midwest Grain Products,


Inc. (NASDAQ-NMS: MWGP), today reported that results for its second quarter ended Dec. 31, 1991, were considerably higher than for the same period a year ago, and approximately level with results of fiscal 1992's first quarter.
 Net income for this year's second quarter was $3,357,000, or 51 cents per share on sales of $55,966,000. Last year's second quarter generated net income of $2,709,000, or 42 cents per share on sales of $47,052,000.
 For the first six months of fiscal 1992, net income was $6,786,000, or $1.04 per share on sales of $109,479,000. Earnings for the first half of fiscal 1991 totaled $4,996,000, or 77 cents per share on sales of $92,962,000.
 Ladd Seaberg, president and CEO, said the consistency of higher sales and earnings in this year's first and second quarters reflected the continuation of healthy market conditions for the company's products. "We are especially encouraged by strengthened demand for our vital wheat gluten; consistent growth in our premium wheat starch market; and increased levels of alcohol production which allow us to improve total operational efficiency," he said.
 The company experienced a 57 percent increase in unit sales of vital wheat gluten in the second quarter vs. a year ago. The price of gluten also increased as the result of significantly higher raw material costs for wheat.
 "The necessary price increase for gluten has not reduced our commitment to serve customers as the most efficient low cost producer," Seaberg said. He added that Midwest Grain will be able to "supply our customers' needs even more effectively in the future" when expanded gluten production facilities at the company's plant in Pekin, Ill., are completed within the next week. Expansion of the company's Atchison gluten operation is slated for completion this May.
 Mainly as the result of more flour being required for use in producing increased quantities of gluten, Midwest's milling operation experienced a 17 percent unit volume increase compared to last year's second quarter.
 Unit sales of premium wheat starch climbed 6 percent above last year's second quarter level. Seaberg commented that due to the company's steadily increased use of existing wheat starch production capacity, future expansion possibilities to satisfy long-term growth needs are being considered.
 A 40 percent increase in unit sales of fuel alcohol was the major contributor to a 13 percent rise in second quarter unit sales of all alcohol products produced by Midwest. High quality industrial alcohol sales rose 7 percent above last year's second quarter, and beverage alcohol unit sales remained about even with their level of a year ago. Prices for all three types of alcohol were lower compared to fiscal 1991's second quarter, but slightly higher compared to this year's first quarter. Of the three, fuel alcohol experienced the largest price increase.
 -0- 2/5/92
 /CONTACT: Steve Pickman of Midwest Grain Products, 913-367-1480/
 (MWGP) CO: Midwest Grain Products, Inc. ST: Kansas IN: SU: ERN


DC -- DC013 -- 7132 02/05/92 11:23 EST
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Publication:PR Newswire
Date:Feb 5, 1992
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