ARDEN HILLS, Minn., July 31, 2012 /PRNewswire/ -- Land O'Lakes, Inc. today reported continued strong sales across its business portfolio, with net sales up for both the second quarter and the first half of the year.
Net sales were $3.6 billion for the second quarter, up from $3.5 billion for the same quarter last year. Net sales for the first half of the year (through June) were $7.5 billion, up 8% from $6.9 billion for the first half of 2011. In the Company's core businesses, first half sales were up 11% in Feed, 15% in Crop Inputs and 17% in Layers, while Dairy Foods sales were down 7%, primarily because of market conditions.
Lower quarterly and first half earnings were attributable to the overall economic environment, declining markets and excess milk supplies which impacted the Company's Dairy Foods business. These factors were partially offset by exceptionally strong earnings in the Company's Crop Inputs business, WinField Solutions, which benefited from the early Spring and favorable early growing conditions.
For the second quarter, Land O'Lakes reported earnings of $47.3 million compared with $67.1 million for the same period in 2011. Year-to-date net earnings (through June) were $131.9 million, compared with earnings of $168.1 million during the first half of 2011.
"At the mid-point of the year, we are pleased to report solid sales, with particularly strong results in core branded and proprietary product lines," said Land O'Lakes President and Chief Executive Officer Chris Policinski. "We are continuing to successfully introduce innovative new products and build our brands with new revenue generating strategies," he added.
"Earnings across business units are mixed as we face continuing challenges from the struggling national economy and volatile markets," Policinski added. "We are addressing these challenges by focusing on growing revenues, reducing costs, improving efficiencies and streamlining processes as part of our Company-wide initiative called Total Margin Management."
Land O'Lakes is committed to balancing the near-term investment requirements of growth with the long-term objective of maintaining a strong balance sheet. Land O'Lakes' total debt as of June 30, 2012, was $1.38 billion, up $0.32 billion from the same date one year ago. The increase was due to several acquisitions which are now generating additional cash flow, as well as higher working capital needs related to growth and increased commodity prices.
Land O'Lakes' second quarter financial results can be found at www.landolakesinc.com. Click on Investors and Quarterly Financial Statements.
Land O'Lakes, Inc. (www.landolakesinc.com) is a national, farmer-owned food and agricultural cooperative with annual sales of nearly $13 billion. The nation's second-largest cooperative and number 210 on the Fortune 500, Land O'Lakes does business in all 50 states and more than 60 countries. It is a leading marketer of a full line of dairy-based consumer, foodservice and food ingredient products across the United States; serves its international customers with a variety of food and animal feed ingredients; and provides farmers and ranchers with an extensive line of agricultural supplies (feed, seed, and crop protection products) and services. Land O'Lakes also provides agricultural assistance and technical training in more than 25 developing nations.
SOURCE Land O'Lakes, Inc.