Imperial Sugar Beats Earnings by $.38posted by MR WAVETHEORY at 8/03/2006 02:17:00 AM
According to the company,
"The higher prices and margins are a result of favorable domestic sugar market conditions which was driven by a tight domestic supply caused by a smaller domestic sugarbeet crop and the impact of last year's Gulf Coast hurricanes on the cane sugar industry."
Furthermore, the company reiterated continued strength in the sugar market.
"We have been able to sustain a margin that is well above historical levels despite some softening in spot prices in our industrial business line from the very high levels that existed earlier in the year. Accordingly, while the industrial price ramp has largely leveled off, we continue to stand by our earlier comments that we expect industrial prices and margins for the latter half of the fiscal year will be higher than those achieved during the first six months."
The report was spectacular. Shares traded as high as $36.76 earlier in the year and the stock looks poised to break out to new highs. Lehman Brothers owns 29% of the outstanding shares and has been adding recently.
Mr Wave Theory