Milk prices drive down Land O'Lakes first quarter net earnings
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ARDEN HILLS, MN, May 5, 2015 - Land O'Lakes, Inc. announced first quarter financial results, reporting quarterly net sales of $3.8 billion and net earnings attributable to Land O'Lakes of $99.4 million for the period ending March 31, 2015 - down from $125 million in 2014.
While net earnings were down compared to 2014's record first quarter, the farmer-owned cooperative said that this year's performance stands as one of the strongest first quarters for the company.
"Overall profits saw a dip in comparison to 2014 first quarter results, primarily due to the cyclical nature of milk prices. This market volatility has had a substantial, negative impact on the first quarter inventory values and financial results," stated Chris Policinski, Land O'Lakes, Inc. President and CEO in a press release.
"Despite this impact, we are very pleased with the underlying fundamentals of our business as volume, share and new product performance continue to be strong across most all of our portfolio. Our value-added products, continued innovation and growth investments continue to drive solid earnings."
Land O'Lakes reported strong results in animal feed, which includes Purina Animal Nutrition. Pre-tax earnings increased significantly over the same quarter in 2014 due to volume growth and improved formula feed margins.
The crop inputs segment, which includes WinField Solutions, also reported strong performance for the quarter, with strong volumes in alfalfa and favorable seed margins. These effects were partially offset due to strong shipments in the fourth quarter of 2014.
For the full first-quarter report, go to: www.landolakesinc.com. Click on "Investors" and "Quarterly Financial Statements."
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