Red Oak, IO - Beef seller Red Oak Hereford Farms Inc. said that it might post its first-ever profitable quarter in the fourth quarter as sales have increased, though the company will report a loss for the full year.
Certified Hereford beef sales at the company's Red Oak farms unit were 1.4 million pounds in August, up from 905,000 a year ago, driving revenue up to $2.6 million in August from $1.6 million a year ago, the company said.
"We believe that a breakout is occurring," Gordon Reisinger, president, said in a statement. "And while all of 1998 will generate a loss, we could potentially see a fourth quarter profit for the company."
The company, which went public in March 1997, reported a loss of about $4.5 million or $0.33 a share for all of 1997, and a loss of $1.8 million or $0.14 a share in the 1997 fourth quarter. Fourth quarter results include expenses of about $700,000 incurred primarily in the second and third quarters relating to private placement sales, the company said.
The company is set to launch a multimedia marketing and advertising campaign next month featuring an extensive mail order marketing program and a brand identity effort, the company said.
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