Inver Grove Heights, Minn.-Agriliance LLC reported earnings of $113.2 million for the three months ending June 30, 2007, up $37.7 million from the year-ago $75.5 million, according to co-owner Land O’Lakes Inc. Crop protection sales were relatively flat, with earnings off $6.1 million due to product mix and slightly higher operating costs. Crop nutrient volumes increased 3 percent from last year, and crop nutrient pretax earnings increased $42.3 million due to higher market prices and higher margins in nitrogen, phosphate, and potash. Retail business pretax earnings were $4.4 million higher than last year, primarily due to earnings in crop nutrients due to high market prices. Current year earnings include a $3.6 million restructuring charge in June related to the repositioning of Agriliance and acceleration of deferred financing costs. For the first six months, Agriliance reported earnings of $123.6 million, $58.9 million more than the year-ago $64.7 million. Sales of crop protection products increased 4 percent compared to prior year sales, and earnings decreased $10.5 million due to timing of rebates, product mix, and continued devaluation related to products losing patent protection. Crop nutrient volumes increased 4 percent and earnings increased $56.7 million due to higher market prices and higher margins, primarily in nitrogen, phosphates, and potash. Retail business earnings were $15.1 million higher than last year, largely due to increased earnings in crop nutrients due to higher market prices and earnings from new joint ventures.
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