West Coast ethanol producer Pacific Ethanol (PEIX) sees a 5% slowdown in industry output, and says it has cut back at its own plants "a bit more than that." Ethanol companies across the country have cut back amid poor margins and a supply glut. Pacific CEO Neil Koehler says cutbacks are bringing supply back in balance with demand, and that better news is on the way, as the EPA's recent greenlight for a 15% ethanol blend, up from 10%, adds 200 million gallons to ethanol demand in the second half of 2012, with much bigger increases beyond that. PEIX, which soared the past couple days ahead of 4Q earnings, is giving back much of those gains post-market after reporting a quarterly loss of 3c per share. Shares are down 22% to $1.26. (ian.berry@dowjones.com)

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(END) Dow Jones Newswires

February 27, 2012 17:38 ET (22:38 GMT)