Land O'Lakes sustains $4.3 million loss in Q3
November 5, 2009
by Eric Schroeder
ARDEN HILLS, MINN. — A combination of lower commodity prices and a consumer shift toward a lower-priced product mix contributed to a loss of $4,314,000 at Land O’Lakes during the third quarter ended Sept. 30. The loss compared with net earnings of $28,562,000 in the same quarter a year ago. Net sales for the quarter also were lower, falling 22% to $2,177,524,000 from $2,783,930,000.
“Our third-quarter performance is typically soft due to seasonal impacts,” said Chris Policinski, president and chief executive officer. “Year-to-date, we are on track with our projections, and we remain cautiously optimistic about prospects for the fourth quarter. We are maintaining our earlier guidance for year-end.”
In the company’s Dairy Foods segment, pre-tax earnings totaled $8,900,000 on sales of $776 million, down from $25,400,000 and $985 million, respectively, in the same period a year ago. Land O’Lakes said volumes in the category were mixed, but generally reflected a shift toward lower-priced private label products.
Net earnings for the nine months ended Sept. 30 were $159,833,000, down 17% from $192,630,000 during the same period of the previous year. Sales for the nine months were $7,939,337,000, down 15% from $9,368,794,000 during the same period of the previous year.