Arden Hills, Minn.-Land O’Lakes Inc.’s Agronomy pre-tax earnings were off 86 percent, to $16 million on sales of $483 million for the third quarter ending Sept. 30, 2009, compared to the year-ago $117.6 million and $642 million, respectively. LOL cited the timing of crop protection product vendor rebates, which were recognized earlier in the year. Nine-month Agronomy earnings were $85.3 million on sales of $1.7 billion, versus the year-ago $155.2 million and $2.1 billion. LOL attributed declines to commodity price reductions and the absence of one-time sourcing opportunities that enhanced 2008 earnings. The Agronomy business consists of the crop protection business and a 50 percent stake in Agriliance LLC. Company-wide, LOL reported a net loss of $4.3 million on sales of $2.2 billion for the third quarter, compared to year-ago net earnings of $28.6 million on sales of $2.8 billion. “We have performed well in a very challenging economic environment,” said LOL President and CEO Chris Policinski. “Our third quarter performance is typically soft due to seasonal impacts. Year-to-date, we are on track with our projections, and we remain cautiously optimistic about prospects for the fourth quarter. We are maintaining our earlier guidance for year-end.” LOL said the third quarter performance was in line with the company’s expectations, with overall year-to-date results affected by a combination of lower commodity prices and a consumer shift toward a lower-priced product mix. LOL nine-month net earnings were $159.8 million on net sales of $7.9 billion, versus the year-ago $192.6 million and $9.4 billion, respectively.
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