Pacific Ethanol (PEIX) reported losses that were much worse than expected this morning as the ethanol companies continue to get hammered on plummeting gasoline prices.

Excluding a charge related to asset impairments, the company reported a loss of .51/share while analysts had expected a loss of .15/share.  Sales did increase 56% in the quarter but the cost of corn has risen much faster than the price of ethanol sending margins into the red. 

“We saw unprecedented volatility in the corn and ethanol markets during the quarter and are disappointed with the resulting impact on margins,” Neil Koehler,, said in an under statement.

Shares are off about 6% and trading right around a buck.