"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. "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."
Business dynamics contributing to first quarter results included 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.
The company's dairy foods segment was affected by declining global milk powder and cheese markets but saw strong performance in the company's LAND O LAKES® butter products and high volumes and margin strength in Foodservice. Following 2014's record profit and volumes, the first quarter of 2015 showed a continued trend of strong volume and continued share growth in retail branded butter and superspreads.
Land O'Lakes, Inc. first quarter financial results can be found at www.landolakesinc.com. Click on "Investors" and "Quarterly Financial Statements."
