Penford reports net income up 12% for Q1 ended May 31

22 Jun '05

5 min read

A leading industrial chemical & dyes company Penford Corporation reported financial results for the third quarter and first nine months of fiscal 2005. Penford's net income for the quarter ended May 31, 2005 was $2.6 million, or $0.29 per diluted share, compared with net income of $2.3 million, or $0.26 per diluted share for the same period last year.

In the third quarter of fiscal 2005, the Company monetized its investment in a small Australian start-up company and recognized a pre-tax gain of $0.7 million on the transaction. In addition, the Company recognized an income tax benefit in the third quarter of $1.0 million on $1.6 million of pre-tax income.

Based on a revised estimate of its applicable effective income tax rate for fiscal 2005, the Company recorded a third quarter adjustment increasing the tax benefit related to its first half pre-tax loss by $1.9 million. Third quarter 2004 net income included a $0.4 million pre-tax charge related to restructuring costs in the Australian business segment.

Year-to-date fiscal 2005 reported net loss was $2.2 million, or $0.25 per diluted share, compared to net income of $4.2 million or $0.48 per diluted share, in 2004. Consolidated year-to-date results for fiscal 2005 include approximately $4.1 million in operating costs directly attributable to the labor strike which was settled in the middle of the first quarter, and incremental costs of $0.2 million related to the initial assessment of internal controls pursuant to the Sarbanes-Oxley Act.

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