Humboldt Flour Mills has posted a net loss through the first six months of 1996-97, but says that was expected given the nature of its growing farm supply business.
In a release, the company said its new farm service companies see the majority of sales during spring planting season and that activity will show up in third and fourth quarter results.
Grain sales are below budget. Profit margins are strong on products such as mustard seed, but market conditions are producing falling lentil and canaryseed margins, which has prompted management to reduce activities in those commodities.
General and administrative expenses are down.
In the first six months, Humboldt Mills had sales of $28.8 million and gross profit of $4.26 million. Expenses and interest charges were $4.66 million for a loss before taxes of about $400,000.
The net loss was $213,000 or about two cents per share.
