Rex American's net profit slips to USD 2.8m in fiscal Q1

US ethanol producer Rex American Resources Corp (NYSE:REX) saw its attributable net profit plunge by 28.2% year-on-year to USD 2.8 million (EUR 2.5m) in its first quarter through April, in line with falling average selling prices (ASP).

Diluted earnings per share (EPS) dwindled to USD 0.43 from USD 0.50 in the first quarter of the previous year. Income before income taxes and non-controlling interests fell to USD 5 million from USD 6.2 million, hit by lower crush spreads and reduced distiller grain ASP among other factors.

Net sales and revenue in February-April totalled USD 100.2 million, down from USD 105.2 million a year ago, due to a 6.4% decline in the ASP per gallon of ethanol coupled with a 13.1% drop in dried distiller grains pricing. This was partially offset by an increase in ethanol volume, Rex American's financial statement shows.

“We are pleased with our ability to generate profitable operating results in our fiscal 2016 first quarter given the challenging market environment during this time period,” CEO Zafar Rizvi said. The company currently has stakes in six ethanol plants.

(USD 1.0 = EUR 0.898)

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