CERP Appoints New CFO, Reports Second Quarter Numbers (NASDAQ:CERP)

Cereplast Incorporated, symbol CERP announced the appointment of a new CFO, Heather Sheehan. Mrs. Sheehan has over 20 years of experience and joined Cerepast in 2008 where she was continually promoted until finally landing in her current position. Previously, Sheehan served as the CFO of Exemplis Corporation. CEO and Founder Frederic Scheer commented, ““We are delighted to enhance our executive team with the appointment of Heather Sheehan as Chief Financial Officer,” The company’s second quarter results reported lower sales for the quarter, 684,431 compared to 900,598 a year ago. Gross profit increased 157% to 199,211 and 7.5 million was raised in direct financing. Shipments for 2010 increased 400% from a year ago as well.

Today, Cereplast cited a report from the European Bioplastics Association, noting the development of a bio-based product marketing emerging in Europe in an effort to find solutions to an environment of sustainable development. Recently, Cereplast Incorporated has been uplisted to the NASDAQ exchange, these next few months will be important for CERP to remain healthy, particularly staying above the mandated $1.00 NASDAQ minimum. In other news, Cereplast announced earlier this month that it will have access to a new rail freight service in an industrial park located in Seymour, Indiana. The construction of this rail was funded by the city of Seymour’s Economic Development Corporation.

Using this access, the company can easily produce shipments across the United States, particularly to port cities for international shipment into Asia, Europe and South America. The use of rail shipment will also help cut costs and reduce the carbon footprint of Cereplast Incorporated. The forecast for shipment in 2010 has been established at 16 million pounds of bio plastic resin, an increase in 400% from a year ago.

Currently, CERP is trading at $3.24, the company dropped about a dollar in early June and has remained steady for the following months. Today’s number release could boost the company’s stock price as many are analysts are forecasting growth in the Plastics market. It is possible that reduced shipment cost and increased sales could translate into a higher pricing forecast for the remainder of the year.