Rex American’s net profit soars 135% in fiscal Q3

Dec 5, 2014 - Rex American Resources Corp (NYSE:REX), which has stakes in seven ethanol plants, boosted its net attributable profit by 135.4% on the year to USD 23.3 million (EUR 18.8m) in its third quarter through October 31.

Diluted earnings per share (EPS) for the August-October quarter increased to USD 2.86 from USD 1.21, the company said on Thursday. CEO Stuart Rose explained that the improved bottom line was a result of the favourable industry environment and the efficiency of REX American’s plants combined with its operating disciplines.

Net income from continuing operations before income taxes and non-controlling interests jumped to USD 40.6 million from USD 15.9 million a year earlier.

At the same time, Rex American saw its third-quarter revenue decline to USD 138.5 million from USD 166.2 million due to a drop in ethanol and distillers grains pricing.

The US firm closed the first nine months of its fiscal year with a net attributable profit of USD 67 million, rising from USD 19.2 million in annual terms. Still, revenues dropped to USD 444.6 million from USD 520 million.

At the end of October, REX American had USD 164.3 million of cash and cash equivalents, compared to USD 105.1 million at end-January.

(USD 1.0 = EUR 0.808)

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