Penford sees quarterly sales decrease due to divestiture

Penford Corp has reported that consolidated sales for the quarter ended November 30, 2009 were $67.1 million compared with $59.6 million a year ago.

Net income from continuing operations was $1.1 million, or $0.09 per diluted share, compared to net income of $0.6 million, or $0.05 per diluted share last year.

Revenue grew 20% with industrial starch sales comparable to prior year and biofuels increasing from a year ago.

Sales of liquid natural additive applications grew as the business added new end-markets and customers.

Domestic industrial starch demand remains below pre-recession levels.

The divestiture of the New Zealand business was completed during September 2009 with net proceeds totaling $4.8 million.

The sale of the Australian operating assets was completed on November 27, 2009.

The assets of the two Australian plants were sold to separate purchasers in two transactions.