August 14, 2009
Land O''Lakes reports H1 net sales decline
Minnesota-based Land O''Lakes on August 13 reported that net sales reached US$5.8 billion in the first half of 2009, down from US$6.6 billion in the same period last year.
Net earnings totalled US$164.1 million, matching the result of the first half in 2008, despite this year''s difficult economic conditions.
Second quarter net sales were US$2.8 billion and net earnings were US$81.5 million, compared to US$3.3 billion in net sales and US$102.8 million in net earnings for the same period a year ago.
Company officials indicated that the Seed and Crop Protection Products had a strong performance. Feed had a volume decline in the livestock segment because of financial stress among beef cattle and dairy producers. But the company had increased volume in the lifestyle feed and ingredients segments.
The company''s total EBITDA was US$141.3 million for the quarter and US$254.1 million year to date, versus US$163.8 million and US$273.1 million for the same periods in 2008.
The Feed division reported US$851 million in sales and US$19.8 million in pretax earnings for the second quarter, against US$926 million in sales and US$21 million in pretax earnings for the second quarter of 2008.
The Feed division reported US$1.74 billion in sales year to date, and US$25.1 million in pretax earnings, down from US$1.87 billion in sales and US$30.4 million in pretax earnings through the first two quarters of 2008.
The company attributed the Feed division''s performance, particularly in the livestock sector, to reduced volumes and a shift away from fully formulated feeds, mainly due to market declines and financial stress in the beef cattle and dairy industries.
Year to date, livestock feed volumes were down 13 percent compared with the first half of 2008, while lifestyle feed volumes were up two percent and feed ingredients volumes were up one percent.