Posted Nov. 11, 2010

Aventine Renewable Energy Holdings Inc. continues to rebuild and reorganize following its April 2009 Chapter 11 bankruptcy filing. During a conference call to announce the company's third quarter financials, CEO Tom Manuel said the past three months have been a period of growth and transition as new management was added and production capacity was increased. The company continues to operate in the red while it completes its new operational strategy, however, and recorded net sales that were 17.4 percent lower than the same period last year. Net losses for the quarter totaled $6.6 million.

Losses accrued during the quarter can be credited partially to the temporary shutdown of the company's Aurora, Neb., facility, according to Aventine. The company shut down the facility for mechanical repairs in June and did not restart production until late August. Additional expenses during the quarter included $16.5 million for the purchase of a 38 MMgy Canton, Ill., plant in August.

Construction of Aventine's 113 MMgy plants in Aurora, Neb., and Mt. Vernon, Ind., is on schedule and under budget, according to Manuel. Staffing activities are complete at the Mt. Vernon plant, which is expected to begin producing by the end of the month. The Aurora West facility should be complete by the end of the year, but Aventine will not begin producing ethanol at that site until next spring, when more favorable weather conditions can be expected.

Part of Aventine's re-emergence strategy addresses its ethanol marketing activities. The company previously placed heavy emphasis on marketing other producers' ethanol at low margins, according to Manuel. "We are changing the focus to operate the company as an ag-processing company focused on our equity production," he said. Aventine will no longer serve as a wholesale marketer for other producers, opting instead to focus on its own margin management, he said.