Record Sales for Land O'Lakes

US - Animal feed, crop, egg and dairy company, Land O’Lakes, Inc., has posted record second-quarter (Q2) and first half-year sales and earnings.
calendar icon 8 August 2014
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Land O’Lakes, Inc. has released second quarter and first-half 2014 results, reflecting record sales and earnings and improved financial performance across all businesses.

For the three months ending 30 June, Land O'Lakes, Inc. reported net earnings of $96.4 million, a 27 per cent year-over-year increase, on sales of $4.04 billion, a 6.6 per cent increase compared to the same period last year.

For the first half of 2014, Land O'Lakes, Inc. realised net earnings of $221.1 million, a 50 per cent increase over the first six months of 2013, on sales of $8.33 billion which were 6.4 per cent higher than 2013.

Chris Policinski, president and CEO of Land O’Lakes, Inc., commented: “We are pleased with our overall performance for the first half of 2014, which has been driven by improving commodity markets and the success of strategic investments we have made in our core businesses over the recent past.

“Our performance continues to improve as we sharpen our focus on addressing consumer interest for more convenient and more nutritious products in our food businesses and on helping farmers produce more food in an increasingly sustainable manner in our agricultural businesses.”

Land O’Lakes Dairy Foods reported earnings higher than the same time last year with growth attributed to rising butter and cheese markets, internal manufacturing efficiencies and targeted, effective marketing.

Crop Inputs, operated under the Winfield Solutions business, reported a strong second quarter and first-half performance with a focus on delivering solutions to farmers which improve on-farm productivity, profitability and sustainability. Continuing to build its presence in the precision agriculture segment, WinField’s gains are partly due to higher product sales for alfalfa and soybeans as members expanded their acreage for these crops.

Animal Nutrition, operated under the Purina Animal Nutrition business, reported strong second quarter and first-half performance with high volumes and margins throughout its lifestyle and livestock portfolios. Animal Milk Replacer reported strong sales volume increases and margin expansion. Results from the company’s premix business, NutraBlend, were also favourable.

The Layers segment, which is operated through MoArk, reported improved earnings from 2013, an increase due to strong egg pricing and improved business performance. The company has divested the Midwestern assets and substantially all of the Western assets of this business and is considering options with respect to the Eastern assets.

Land O'Lakes' total debt as of 30 June 2014 was $1.54 billion, down $114 million from the same date one year ago. The decrease was primarily due to the Moark asset sales, partly offset by increased working capital.

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