Land O’ Lakes Inc., Arden Hills, Minn., reported net earnings for the year ending Dec. 31, 2018, of $255 million on net sales of $14.9 billion, down from 2017’s earnings of $365 million on sales of $13.7 billion. Net earnings included a non-recurring charge for the estimated withdrawal liability associated with its participation in a multi-employer pension plan. Excluding this charge, fiscal year earnings were $309 million. The company said it returned $194 million in cash to members.
Land O’Lakes said results were down in its Crop Inputs and Insights business, citing increased competition and a shift in product mix attributed to low commodity markets and the general decline of farm income. Pretax earnings were $165 million in 2018, down from Crop Inputs $230.1 million in 2017.
Dairy Food pretax earnings were also down, at $59 million from the prior year $71 million. While the snack, dessert, and food service businesses delivered strong performance, this was offset by lower retail product mix and compressed margins on milk powders.
Animal Nutrition pretax earnings were almost level at $91 million, down from $91.6 million. The company said insights and breadth of product offerings, along with improved premix margins, helped mitigate a challenging livestock environment in which producers were sometimes trading down.