Nov 8 - MGP Ingredients Inc posted a surprise first-quarter loss, hurt by higher costs and a weak performance at its distillery products segment due to a decline in ethanol prices, sending shares down more than 11 percent.
The food ingredients and distillery products maker said higher costs for corn, the principal raw material used in alcohol production, and reduced unit sales also hurt the segment's performance.
The Atchison, Kansas-based company reported a net loss of $318,000, or 2 cents a share, compared with net income of $7 million, or 41 cents a share, a year ago.
Net sales rose 3.5 percent to $88 million.
Analysts on average were expecting earnings of 14 cents a share, before exceptional items, on revenue of $103.9 million, according to Reuters Estimates.
Distillery products sales fell 6.7 percent to $64.4 million. Pre-tax income at the segment declined to $679,000 compared with $15.2 million a year ago.
Certain issues related to the distillery processes led to a production level below the maximum capacity, the company said.
Net sales at the company's other segment, consisting primarily of developing business lines for pet product and plant-based biopolymer applications, fell more than 15 percent to $1.3 million. The unit posted a pre-tax loss of about $1.1 million.
Cost of sales rose 18 percent, while selling, general and administrative expenses rose about 29 percent for the quarter.
Shares of MGP Ingredients were down 99 cents at $7.88 in morning trade on the Nasdaq.