REX American's profit falls, revenues rise slightly in fiscal Q2

US ethanol company Rex American Resources Corp (NYSE:REX) on Thursday reported an attributable net profit of USD 8.2 million (EUR 7.5m) for its second fiscal quarter through July, down from USD 16.4 million a year ago, on a slight increase in revenues.

Profit before taxes and non-controlling interests dropped to USD 13.5 million, from USD 27.4 million. Stripping out the contribution of the Patriot Holdings LLC stake last year and the gain from its disposal, however, the fall was milder, to USD 13.5 million from USD 15.4 million.

Rex American now owns interests in six ethanol plants, two of which are consolidated.

Net sales and revenue rose marginally to USD 115.7 million from USD 113.5 million, mainly due to volume growth in ethanol and dried distillers grains (DDG), partially offset by a decrease in their average selling prices.

Chief executive Zafar Rizvi said that industry fundamentals had improved during the quarter and the company managed to increase the number of gallons of ethanol sold by 5%. "In addition, during the quarter we neared the completion of our capital investment projects to further expand production at our consolidated plants which will leave us better positioned for future ethanol demand," the CEO added.

(USD 1.0 = EUR 0.909)

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