Land O’Lakes, Inc. Reports Third Quarter Sales increase 4 percent to $3.1 Billion; Earnings up 173 percent to $49.4 million
ARDEN HILLS, Minn., (November 12, 2013) — Land O’Lakes, Inc. announced third quarter financial results showing solid sales and strong earnings that surpassed the prior year for both the quarter and year-to-date.
Third quarter net sales were $3.1 billion, up 4 percent from the same quarter last year while earnings increased to $49 million, 173 percent higher than the third quarter of 2012. Year-to-date sales were $11.1 billion compared with $10.4 billion last year while net earnings through September were $198 million, 32 percent higher than the $150 million reported during this period in 2012.
“The strong third quarter and year-to-date results reflect the on-going implementation of growth strategies that add value and expand markets of our brands,” said Chris Policinski, president and CEO of Land O’Lakes, Inc.
Policinski said the company’s Dairy Foods business is experiencing strong earnings driven by its iconic butter and cheese brands. “The 2013 earnings in Dairy Foods have also grown as a result of new products such as Kozy Shack® refrigerated desserts and continuing innovations such as the recently expanded line of Sauté Express® Sauté Starter products,” he added. Land O’Lakes, Inc. total debt as of September 30, 2013, was $1.87 billion, up 2 percent from the same date one year ago. The increase was due to higher working capital, which was largely offset by improved cash flow.
LOL operates one of the largest dairy plants in the state in Tulare.
U.S. Orange Production Down
A Nov 8 U.S. Department of Agriculture forecast says 2013-14 U.S. orange production will be 7,960,000 tons (183 million boxes), down 5% from 8,349,000 tons in 2012-13.
Florida orange production is estimated to be 5,625,000 tons (125 million 90-lb boxes), down 6% from 6,013,000 tons in 2012-13.USDA says that Florida’s crop was reduced by early-season dry conditions and ongoing citrus greening, a disease that causes fruit to fall from trees prematurely and reduces fruit size. If realized, the Florida crop would be the smallest since the freeze-reduced crop of 1989-90.California’s crop is expected to be the same as last year.
New Orange Maturity Standard Working Well
The Packer newspaper says “a new maturity standard went into effect last year for California navel oranges, but growers say conditions have been so favorable that meeting the standard has been no trouble.By requiring that navels meet a certain sugar/acid ratio, the industry hopes even the first navels to hit supermarket shelves each fall will be sweet and flavorful, prompting repeat sales.“Adopting the California Standard will increase the probability that the consumer will have a positive eating experience when they purchase a navel orange,” California Citrus Mutual says on its website.”