Land O'Lakes Shows 'Solid' First Quarter Performance22 May 2013
US – Dairy focused agricultural cooperative, Land O’Lakes has reported first quarter earnings of $72 million and net sales up 6 per cent to $4.2 billion.
The announcement shows continuing progress in the business after a record year for sales and earnings in 2012.
Company officials described recent performance as ‘solid and in line with expectations’ noting that net earnings were actually 16 per cent down due to higher spending on advertising.
President and Chief Executive Officer, Chris Policinski stated that strong earnings had been maintained through the crop inputs sections of the business after a record year for the department in 2012.
“Our Crop Inputs business, which is operated under Winfield Solutions LLC, had a record year in 2012 and continued to deliver strong earnings in the first quarter of 2013, slightly below prior year because of weather-related timing of spring planting, said Mr Policinski.
The retail dairy business reported an ‘impressive’ first quarter, largely down to strong earnings from flagship butter sales. Kozy Shack, a newly acquired line in premium refrigerated deserts, has also performed strongly.
The diverse scope of LandO’Lakes processing was outlined by Mr Policinski who noted durability in their animal feeds and egg businesses.
“Our Feed business, operated through Purina Animal Nutrition LLC, showed improved operating profit in 2013 as well,” Mr Policinski added. “Our Layers egg business was challenged by high feed costs and low commodity egg prices, generating results similar to the prior year.”
TheMeatSite News Desk