February 24, 2010
Land O''Lakes turns in high profits for 2009
Farmer cooperative Land O''Lakes, Inc. announced record high net earnings for 2009, achieved in a difficult and volatile economic environment and marketplace.
For 2009, Land O''Lakes recorded net earnings of US$209 million and a record high cash returned to members of US$108 million.
Net sales amounted to US$10.4 billion, the company''s second-highest revenue total, but that was 14% below 2008''s record US$12 billion. The decline was largely due to lower commodity prices nearly across all businesses, and the impact of the recessionary economy on consumer and customer purchasing decisions.
Record-high net earnings of $209 million for 2009 were up 31% from 2008.
The company''s feed business reported US$29.8 million in 2009 pretax earnings, up from US$500,000 in 2008. Feed results for 2009 include an US$18.4 million unrealised hedging gain, compared to a US$29 million unrealised hedging loss as of December 31, 2008.
Feed sales for 2009 were US$3.4 billion, down from US$3.9 billion in 2008. Volumes were mixed, with financial stress and lower commodity prices in the dairy and beef markets contributing to reduced volumes and a lower-priced product mix in the livestock segment. Lifestyle feed and Milk Replacer volumes were up.
Land O''Lakes, Inc.is a US, farmer-owned food and agricultural cooperative and operates in all 50 states and more than 60 countries. It produces food and animal feed ingredients, as well as an extensive line of agricultural supplies including feed, seed, crop protection and services.