[Pamphlet: Statement of Imperial Sugar Company, December 31, 1954] Page: 2 of 9
This pamphlet is part of the collection entitled: Harris and Eliza Kempner and was provided to The Portal to Texas History by the Rosenberg Library.
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ytqIMPERIAL SUGAR COMPANY
SUGAR LAND, TEXAS
February 4, 1955
TO STOCKHOLDERS AND DEBENTURE HOLDERS OF
IMPERIAL SUGAR COMPANY:
Balance sheet of your company, consolidated with the balance sheet of its
wholly owned subsidiary, Fort Bend Utilities Company, at the close of the fiscal
and calendar year of 1954, approved by Phillips, Sheffield, Hopson & Lewis,
Certified Public Accountants, is enclosed for your information.
RESULTS OF 1954
The Company's sales volume for 1954 was approximately ten per cent less
than for 1953. Four per cent of this volume was more or less deliberately reduced
as being unprofitable. The remaining reduction was due to competitive condi-
tions, particularly a larger crop of sugar beets, so that beet sugar offered in this
area diminished the spread between the price paid for our raw sugar and the
price refiners received for their refined product. This consequently was reflected
in our profits in 1954, being seventy-five per cent of those attained in 1953.
The very small margin between the price cane refiners paid for raws and the
sales price of the refined product during the year 1954, prevailed only in the
Chicago-West territory. This is the area in which we sell practically all of our
sugar. While this margin was extremely narrow in the Chicago-West area, a
considerably wider margin prevailed in the Pacific and Atlantic Coast areas.
During 1954 your Company paid dividends of $2.00 per share. This is less
than we paid in the previous two years. The need of working capital, together
with the anticipated expense of entering the liquid and bulk granulated sugar
operations, was taken into consideration in determining the dividends to be
paid in 1954.
REHABILITATION AND IMPROVEMENT PROGRAM
With the completion of our No. 2 Pan House on December 31, 1954, we
bring to a close the original rehabilitation program started in 1946. As previously
reported, this program has cost us approximately $5,000,000.00. Obviously,
while this rehabilitation program was essentially due to the obsolescence of the
plant, this large sum invested can be justified by the thought and vision of the
future growth of the great Southwest.
PROSPECTS FOR 1955
It appears at this time that market conditions for our product in 1955 may be
similar to 1954. Uneconomical competitive practices, largely confined to our
trade territory, are due primarily to an over-supply of sugar in this area. The
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Imperial Sugar Company. [Pamphlet: Statement of Imperial Sugar Company, December 31, 1954], pamphlet, December 31, 1954; (https://texashistory.unt.edu/ark:/67531/metapth1162048/m1/2/?q=%22%22~1&rotate=180: accessed July 17, 2024), University of North Texas Libraries, The Portal to Texas History, https://texashistory.unt.edu.; crediting Rosenberg Library.