MGP Ingredients: reports 42,7 million USD loss in Q2/2009

Atchinson / KS. (mgp) MGP Ingredients Inc., the company once known as «Midwest Grain Products», reported a big loss for the second quarter of its fiscal year. MGP stopped gluten and starch production at its Pekin plant last year and has now backed out of ethanol production. The company Monday reported a 42,7 million USD loss for the second quarter 2009 (plus 5,2 million USD in Q2/2008). Net loss for the recent quarter included special charges of 17,4 million USD related to the company´s business transformation process, as well as an unrealized loss of 5,4 million USD recorded to cost of sales for projected settlements of natural gas contracts. Quarterly sales fell 22,1 percent to 73,2 million USD from 94,0 million USD a year ago. Sales of fuel grade alcohol accounted for 14,6 million USD of the 20,8 million USD decline in year-over-year quarterly sales. More ominously, the Kansas-based company said its ability to continue as a going concern will depend on getting additional credit sources and for current lenders to put off calling in loans.