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Penford Corp swings to Q4 loss

Thu Nov 13, 2008 7:18am EST

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(Reuters) - Diversified chemicals company Penford Corp (PENX.O) swung to a fourth-quarter loss, hurt by production suspension at the company's Cedar Rapids facility and higher raw material cost.

For the quarter ended August 31, Penford reported a net loss of $20.9 million, compared with a profit of $4.3 million a year earlier.

The company said the Cedar river floods in June 2008 forced a shut down of production at the company's Cedar Rapids facility. Partial production was restored late August.

The company forecast direct costs of the floods to be in the range of $45 million to $47 million.

Gross margin as a percent of revenue fell due to rising raw material and transportation costs, said Penford.

Shares of the company closed at $10.75 Wednesday on Nasdaq.

(Reporting by Arup Roychoudhury in Bangalore; Editing by Jarshad Kakkrakandy)


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