Sustainable plastics manufacturer Cereplast Inc. (El Segundo, CA) has raised its full-year outlook following a very successful first quarter. The company expects to report first-quarter revenue of $7.2 million, easily outstripping its first quarter guidance of $5.0-$6.5 million. Based on these preliminary results, the company has raised its full-year 2011 revenue guidance to $28.0-$34.0 million, up from its previously stated 2011 guidance of $24.0-$32.0 million. The upper end of that range would be more than five times higher than 2010's revenue of $6.3 million.
Cereplast chairman and CEO, Frederic Scheer, said in statement that the better-than-expected revenue is primarily a result of the five new distribution agreements the company signed during the first three months of the year. Those deals have helped Cereplast expand its reach into the European market. In that market, Scheer noted that "legislation is a key driver in the rise of demand for biobased alternatives to petroleum-based plastics." The company's stock, which is listed on the NASDAQ under CERP, traded up as high as $4.58, up nearly 10%, on the news. Cereplast is finalizing its first-quarter financial results and will report them on May 16, 2011. ...