Land O'Lakes has record year

Land O'Lakes has record year

- Co-op reports challenging headwinds but continued growth. - Feed manufacturing unified under Purina name. - Crop inputs brought unde

LAND O' LAKES Inc. has reported record earnings and sales for 2012, crediting continued implementation of strategies designed to build value-added, branded businesses in dairy foods, feed and crop inputs.

Chief executive officer and president Chris Policinski noted that the cooperative also completed a number of "key acquisitions" and reinvested in product innovations last year.

Land O'Lakes' results are shown in the Table.

For its dairy foods segment, Land O'Lakes said there were significant challenges in the first half of 2012 related to "unexpected and exceptional growth in milk production" and consequent volatility in the markets.

The company said retail results included record volumes in "Superspreads," which include Land O'Lakes tub butter. Cheese products also experienced a good year.

The cooperative said the dairy foods segment also grew through acquisitions, including the purchase of Kozy Shack Enterprises Inc., which added refrigerated desserts to the Land O'Lakes portfolio (Feedstuffs, Aug. 20, 2012).

For its feed segment, Land O'Lakes said the business was driven by gains in both lifestyle and livestock nutrition and by acquisitions, new products and the launch of a major new branding platform in which the cooperative unified all feed products under the Purina label, establishing Purina Animal Nutrition LLC.

Land O'Lakes said Purina acquired the Old Mill Troy premix business and introduced a small animal line, expanding into the $500 million small pet market.

Purina also introduced Hydration Hay Blocks for horses and Storm Cattle Mineral, a weatherized cattle mineral product.

For its Winfield Solutions crop inputs segment, Land O'Lakes said it continued to bring the "extensive line of products and services" within the Winfield banner and supported their marketing with a national campaign that included print and television advertising, public relations and online promotions.

The company said Winfield acquired Precision Turf & Chemical Inc., which markets products and services to golf courses, recreational facilities and sports venues.

For its Moark LLC egg production segment, Land O'Lakes said the business experienced a challenging year and recorded a loss because of high feed costs and lower commodity and brown egg prices, the latter due to excess brown egg supplies and the very hot weather last summer that prompted an excess supply of medium- and small-sized eggs.

Land O'Lakes, headquartered in Arden Hills, Minn., is a farmer-owned agricultural and food cooperative that does business in all 50 states in the U.S. and in more than 60 additional countries.

 

Land O'Lakes full-year earnings and sales*

 

2012

2011

Segment sales (billion $)

Dairy foods

4.2

4.4

Feed

4.6

3.9

Crop inputs

4.7

3.9

Egg production

0.7

0.6

Segment operating earnings (million $)

Dairy foods

38.0

25.1

Feed

31.0

11.5

Crop inputs

228.0

86.6

Egg production

(34.0)

(3.0)

Corporate

Sales (billion $)

14.1

12.9

Earnings (million $)

240.9

183.6

*For the quarters ended Dec. 31, 2012, and Dec. 31, 2011.

Source: Land O'Lakes Inc.

 

Volume:85 Issue:11

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