Land O'Lakes, Inc. released its 2012 financial results, reporting record sales of $14.1 billion and record net earnings of $241 million. Additionally, three of the business segments achieved record sales, and the crop inputs segment had record earnings in addition to record sales.
The company also returned $113 million to members in 2012, the fourth consecutive year in which member returns exceeded $100 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," Chris Policinski, president and CEO of Land O'Lakes, Inc said in a prepared statement. "These are strong, growing segments of agribusiness."
A variety of factors influenced the 2012 performance. Among the factors were warmer-than-normal weather, which benefitted the crop inputs business, volatile dairy markets, and fluctuations in commodity pricing. Overall, Land O'Lakes' results were positively impacted by the continuing implementation of strategies focused on consolidating and strengthening the company's business platform, reducing costs and driving growth, Policinski said.
"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."