Bloomington, Ill.-Growmark Inc. estimates that sales for the year ending Aug. 31, 2006, will be $3.4 billion, up $700 million from last year. Net income is expected to be $73.5 million, up from the prior year’s $73.2 million, which included a $51 million gain from the sale of CF Industries Inc. stock. The company’s energy business had a record year and helped offset the company’s agronomy business, which saw a six percent decrease in fertilizer and crop protection volumes. Seed sales were a bright spot, with sales topping $130 million, a $20 million increase. Higher sales were generated from higher seed corn and biotech trait sales. Growmark said it has gained 560,000 acres of new corn and soybean seed business in the past two years. With relatively flat planted acreage, Growmark CEO Bill Davisson told shareholders Sept. 1 that this is business taken away from competitors. Davisson also said that Growmark FS, its agronomy subsidiary on the eastern seaboard, has increased sales to $120 million and has positive income. He said the unit is in the midst of a facilities restructuring program, which includes closing, relocation, and construction of new facilities. Growmark said it would return more than $49 million in patronage and refunds to members. In addition, there will also be a special redemption of preferred stock. In total, more than $60 million of cash will be distributed, a Growmark record.
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