Imperial Sugar Profits Drop

NEW YORK - Jan 29/08 - SNS -- Imperial Sugar Company reported a net income of U.,S. $12.3 million on sales of $215.5 million for the first quarter ending December 31, compared to a net of $15.7 million on sales of $227 million during the same three-month period last year.

Gross margin as a percentage of sales for the three months ended December 31, 2007 decreased to 7.9% from 17.1% in the prior year quarter. Margin performance was the result of lower sugar sales prices coupled with higher freight and manufacturing costs, offset in part by a small decrease in raw sugar and energy costs.

Commenting on these results, Robert A. Peiser, Imperial's president and ceo, stated that "We are reasonably pleased with our operating results for our first fiscal quarter given the challenging environment that is present within the cyclical domestic sugar market. In addition, it is obvious that the challenging earnings comparison is in part due to the higher than normal market prices for refined sugar present in the last two years from the after effects of weather-related events. Fortunately, Imperial is well positioned both operationally and financially to withstand this down cycle. We are continuing to make investments in our refineries and to our systems to improve operating efficiencies and enhance customer service capabilities and metrics.

"Our joint venture with the Santos group to market sugar in Mexico which we initiated during the first fiscal quarter is an important initiative for Imperial in the expanded NAFTA market. The venture has filled key staff positions, including a General Manager and a Sales Director, and I am pleased with the amount of Santos sugar production that the venture has sold in its first six weeks of operations. We look forward to continuing the development of this business and working with our partners to capitalize on opportunities that develop as these new markets evolve."

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