Land O'Lakes first-quarter earnings edge upward

by Eric Schroeder
Share This:

ARDEN HILLS, MINN. — Land O'Lakes, Inc. posted earnings of $26,112,000 in the first quarter ended March 31, up from $24,296,000 in the same period a year ago. Sales in the first quarter totaled $2,074,916,000, up narrowly from sales of $2,031,234,000 in the same period a year ago.

In generating improved sales and earnings, Land O’Lakes experienced strength in its Seed business, where pre-tax earnings for the quarter totaled $40.3 million, which compared with $28.7 million last year. Results were driven by increased volumes, with corn units up 13%, soybean units up 9% and alfalfa units up 38%.

The company’s Feed business was adversely affected by tighter margins, particularly in dairy and horse feed, but still managed to post a $3.3 million gain in pre-tax earnings.

Challenges continued to prevail in Dairy Foods and Layers/Eggs, Land O’Lakes said. The company sustained a pre-tax loss of $2.9 million in Dairy Foods during the quarter, as an $8 million asset sale gain was not enough to offset depressed dairy market prices, ongoing milk supply/processing demand balance issues and continued high energy and transportation costs. In its Layers/Eggs unit, Land O’Lakes reported a $6.3 million pre-tax loss, which was basically in line with one year ago.

During the quarter, Land O’Lakes acquired full ownership of MoArk L.L.C., which previously was a joint venture.

Comment on this Article
We welcome your thoughtful comments. Please comply with our Community rules.



The views expressed in the comments section of Food Business News do not reflect those of Food Business News or its parent company, Sosland Publishing Co., Kansas City, Mo. Concern regarding a specific comment may be registered with the Editor by clicking the Report Abuse link.