Bio-plastics maker Cereplast Inc. reported on Monday a slightly larger second quarter loss due to higher costs and lower revenue associated with opening an Indiana plant.
The El Segundo company also announced a new chief financial officer.
Cereplast reported a net loss of $1.7 million (-15 cents per share), compared with a net loss of $1.05 million (-14 cents) a year earlier. The company said the increase was largely due to restructuring costs as it moved its distribution and manufacturing operations from Los Angeles County to Seymour, Ind. Net revenue fell 24 percent to $684,431, due in part to the plant relocation.
The company also said it absorbed one-time costs in connection with moving its stock listing to the Nasdaq. It had been traded over the counter.
“We achieved significant milestones in the second quarter and further positioned the company for rapid growth and operational profitability,” said Chief Executive Frederic Scheer said in a statement.
Cereplast makes plastic resin out of 100 percent renewable raw materials, including corn, wheat and potato starches. Most resin is derived from petroleum.
Earlier in the day, Cereplast announced that it promoted Heather E. Sheehan to chief financial officer, effective Aug. 16. Sheehan has more than 20 years of financial experience with both public companies and Big Four accounting firms. She joined the company in 2008, most recently serving as chief accounting officer.
Prior to joining Cereplast, Sheehan served as CFO of Exemplis Corp. and worked at ConAgra Inc., International Rectifier Corp. and Trans Mountain Pipe Line Co. She earned a bachelor of business administration degree in accounting from Simon Fraser University in Vancouver, British Columbia.
Shares closed down 3 cents, or less than 1 percent, to $3.22 on the Nasdaq.
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