By Delimarket.TV Staff
Land O’Lakes has announced its 2012 financial results, which include record sales of $14.1 billion and record net earnings of $241 million. All three of the company’s business segments achieved record sales as well.
Total net sales increased 10.2 percent from $12.8 billion in 2011 to $14.1 billion. Net earnings rose 31 percent from $184 million in 2011 to $241 million.
The strong results in 2012 continue a trend of exceptional performance. The years of 2007 to 2012 represent the top six years for net sales and earnings in company history. During the same time, the company returned more than a half billion dollars to members.
"This consistent, positive performance is a direct result of the continuing implementation of strategies designed to build our value-added, branded businesses in Dairy Foods, Feed and Crop Inputs," said Chris Policinski , president and CEO of Land O'Lakes, Inc. "These are strong, growing segments of agribusiness."
2012’s performance was influenced by warmer-than-normal weather, which benefitted the Crops Inputs business, volatile dairy markets, and fluctuations in commodity pricing. Results were positively impacted by strategic efforts to strengthen the company’s business platform, reducing costs, and driving growth.
"Our growth strategy is fueled by the generation of cost savings and the enhancement of revenues in our businesses through a program we call Total Margin Management. We use these funds to reinvest in product innovations and building our industry-leading brands," Policinski continued. "We also completed several key acquisitions in 2012. This requires a financial strategy that balances short-term earnings and returns with long-term investment to achieve even greater future rewards."