13:05 UK, 7th May 2009, by Mike Verdin
Blast battle swells Imperial Sugar's legal bill

Imperial Sugar reported a loss of $12.6m for the January-to-March quarter, as the aftershocks from last year's fatal refinery explosion near-doubled its legal bill.

Most of the group's charges relating to last February's blast - in which 13 people died - tumbled from a year before, when Imperial reported a $15.5m loss.

Writedowns on lost stock and equipment fell to $200,000 from $16m.

However legal and consulting costs relating to the accident were, at $5.49m, 94% higher than a year before, and three times those in the October-to-December period.

Legal contests

Imperial is fighting an $8.78m fine imposed by the US Occupational Safety and Health Administration last July for safety breaches at Port Wentworth and a second plant in Louisiana.

The group has booked $3.5m of the fine so far.

The company said it had also received 41 lawsuits lodged, in the main, by staff hurt in the blast or relatives of those killed, although payment for these should be covered by insurance.

Costs fall 

Imperial's revenues fell 14.5% to £124m for the January-to-March period, as a 17.5% fall in volumes prompted by the loss of Port Wentworth facilities was offset in part by an 8.7% rise in prices.

However, product and operating costs also fell, trimming the group's operating loss by 3.2% to $21.2m.

Imperial Sugar closed down $0.44, or 5.9%, at $7.05 in New York.

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Imperial in 'productive talks' over blast claim