MGP Ingredients Turns To Loss In Q3

(RTTNews) - MGP Ingredients, Inc. (MGPI), an independent supplier of premium spirits, Tuesday reported a net loss for the third quarter, amid higher costs and reduced industrial alcohol sales.

Net loss for the quarter was $6.4 million or $0.37 per share, compared to net income of $418,000 or $0.02 per share in the prior year.

The latest results were hurt by, among other things, reduced industrial alcohol sales and increased fees related to the current proxy dispute.

Net sales for quarter improved to $80.71 million from $76.19 million, helped by rising prices for high quality alcohol. MGP noted that lower sales of industrial alcohol continue to be offset by increasing sales of beverage alcohol.

Cost of sales climbed 13 percent to $79.36 million.

Beginning with the fourth quarter, the company expects to experience its lowest corn costs in about three years, reflecting the strong U.S. corn harvest. With the majority of its fourth quarter distillery volume committed and priced, the firm estimates that fourth-quarter gross profit could approach or exceed the level achieved in the first quarter of 2013.

Tim Newkirk, CEO, said, "MGP's profitability has been pressured from the combination of tight U.S. corn supplies coupled with very competitive pricing. Today, however, we're on the receiving end of one of the largest corn harvests in recent history.''

MGPI closed down 6.2 percent on Tuesday at $4.85.