REX American Resources' profit down by 10% in fiscal Q3

Author: Perry McKenna. Licence: Creative Commons.

November 29 (Renewables Now) - Net profit to REX American Resources Corp (NYSE:REX) shareholders in the three months to October 31, 2018 contracted by 10% year-on-year to USD 11.9 million (EUR 10.5m), the ethanol producer said Wednesday.

This was another quarter marked by increased pressure on ethanol pricing, but REX managed to offset that, at least partially, with higher distillers grains pricing.

Higher average selling prices for dried and modified distillers grains helped lift ethanol and by-products revenues by 2.1% to USD 123.8 million in the company’s third fiscal quarter. Still, lower ethanol pricing resulted in an over 38% drop in gross profit for the segment. Pre-tax profit fell by 46% on the year to USD 8.4 million.

REX American Resources has interests in six ethanol plants which shipped 702 million gallons of ethanol in the 12 months through October. The net result for the quarter also includes the firm's business segment, refined coal.

(USD 1 = EUR 0.88)

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