Renewable Energy Group lowers 3Q forecast
AMES, Iowa (AP) — Shares of Renewable Energy Group Inc. plunged in trading Friday after the biodiesel producer said it expects to post a loss for its fiscal third quarter.
Renewable Energy said that a recent fall in biodiesel prices and tighter profit margins have taken a toll on its business. As a result, it expects to report an adjusted loss of $2 million to $7 million before interest, taxes, depreciation and amortization. It had earlier forecast an adjusted profit of $10 million to $15 million.
The company raised its sale volume expectations. It anticipates selling 60 million to 63 million gallons of biodiesel during its third quarter. That is higher than its earlier forecast of sales volumes of 55 million to 60 million gallons.
CEO Daniel Oh said that despite the fluctuations in the markets, the company remains optimistic the prospects for the company and the industry.
Shares of the company, based in Ames, Iowa, fell $1.44, more than 20 percent, to $5.68 by midday.