July 26, 2010 / 12:08 PM / in 7 years

UPDATE 1-BIOX sees Q3 loss from US tax break delay

* Sees Q3 net loss between C$6-C$6.3 mln

* Sees Q3 op loss in the range of C$5.5-C$5.8 mln

* Sees Q3 sales between C$6.4-C$6.7 mln

July 26 (Reuters) - Canadian biodiesel producer BIOX Corp BX.TO said it expects to post a loss in the third quarter, hurt by the continued delay in the reinstatement of the U.S. biodiesel tax incentive.

Net loss is expected to be between C$6 million and C$6.3 million, including an estimated C$1.4 million writedown of finished goods inventory to market value, excluding $1 per U.S. gallon related to the delay.

Operating loss for the quarter is expected to be between C$5.5 million and C$5.8 million, BIOX said.

The company expects third-quarter sales in the range of C$6.4 million to C$6.7 million, and methyl esters production of 14.4 million liters.

“Liters sold for the quarter were lower than historical results primarily due to the delayed sale of product into the fourth quarter of fiscal 2010,” the company said in a statement.

BIOX also said any reinstatement of the biodiesel tax incentive -- that expired on Dec. 31, 2009 -- will be delayed until the fall of 2010, and that the program may not be reinstated at all.

Shares of the Toronto-based company closed at C$1.50 Friday on the Toronto Stock Exchange. (Reporting by Gowri Jayakumar in Bangalore; Editing by Unnikrishnan Nair)

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