Growmark reported net income of $81 million on sales of $6 billion for the year ending Aug. 31, 2010, versus the prior year’s net income of $75 million on sales of $6.1 billion (GM Sept. 7, 2009, p. 15). “Fiscal 2010 was another good year in a series of good years,” said Senior Vice President of Finance Jeff Solberg. “The result of this strong performance is a very strong balance sheet with a sound equity base built on a substantial layer of retained earnings, which minimizes the stock investment required of members, which is supplemented by a prudent level of long-term debt.”
Growmark said the plant food division staged a strong comeback after a relatively weak prior year. Operating gross income was the second highest on record and volumes rebounded significantly from 2009, as prices declined and product became more affordable for farmers.
“The late harvest in 2009 prevented the majority of fall tillage and plant food applications,” said Solberg. “Fortunately, April provided a window of opportunity to complete the extra field work. Our FS cooperatives proved their ability to move massive quantities of product to the field.”
Growmark said the crop protection division has been very strong the last three years, and the outlook is positive. The seed division generated another year of growth in seed corn units, while soybean seed sales units ended the year flat as compared to last year. However, the division has achieved solid profitability and will pay patronage for the fifth year in a row.
Growmark’s retail supply business segment enjoyed another good year, producing $1 billion in sales and $18 million in pretax income.
Growmark’s energy division had a very strong year, with volume increases in all products. Propane volume reached nearly 310 million gallons, an all-time record for the company, due to the wet harvest conditions of 2009.
Growmark’s retail grain business produced $800 million in sales and pretax income of $16 million in 2010. Its facility planning and supply division expanded its scope and offerings in 2010, with heavy demand for bulk seed installation and many new farm and commercial grain dryers. Growmark said grain bin sales and construction continues to be a strong business, along with sales of facility equipment products.
Growmark patronage to members will be an estimated $55 million, down from the prior year’s $62 million.