Imperial Sugar Company Reports Q1 EPS of $(0.75) vs.

Imperial Sugar Company IPSU today reported a net loss for the fiscal first quarter ended December 31, 2010 of $8.9 million, or $0.75 per diluted share. Results for the same period of fiscal 2009, which included $278.5 million of pre-tax gains associated with settlement of insurance claims related to the February 2008 Port Wentworth accident, was net income of $178.1 million, or $14.84 per share. Additionally, the prior year's results included $18.9 million of mark-to-market gains on raw sugar derivatives intended to hedge raw sugar purchases in subsequent periods. Absent the insurance and derivative gains the prior year's results would have been a net loss of $12.2 million, or $1.03 per share. Net sales for the quarter ended December 31, 2010 increased to $227.4 million compared to $173.8 million for the same period in the prior year. The increased revenues were due to 11% higher sales volumes and 18% higher refined prices. Gross margin as a percent of sales was a negative 1.6% in the current quarter compared to 7.1% last year, including 10.9 % attributable to the mark-to-market derivative gain. Current quarter results include a $2.9 million severance charge related primarily to the transition of refining operations in Louisiana.