Arden Hills, Minn.-Land O’Lakes Inc. (LOL) reported record net earnings for the year ending Dec. 31, 2009, despite the global economic downturn. Net income was $205.3 million on sales of $10.4 billion, compared to 2008’s $175.5 million and $12 billion, respectively. LOL reported cash returned to members of $108 million in 2009, a record high. Although net sales were down 14 percent, due mainly to changes in across-the-board commodity prices, they were still the second highest in company history. The 2009 revenue highlights were found within LOL’s food businesses. Crop inputs, which include seed, crop protection, and retail agronomy, reported a 15 percent drop in 2009 pretax earnings, at $136.8 million from the year-ago $161 million. Crop input results for 2009 included $11.1 million in unrealized gains, while 2008 included unrealized hedging losses of $14.5 million. Crop input sales in 2009 were $3.3 billion, down from 2008’s $3.5 billion. Volumes in both seed and crop protection were down due to a combination of reduced acreage planted in some segments and higher-than-expected customer carryover from a strong 2008. Crop inputs included a $28.2 million loss in agronomy, primarily due to LOL’s part ownership of Agriliance LLC. LOL said Agriliance’s repositioning has been largely completed, and that it expects to reposition the remaining assets in the first half of 2010. LOL-wide, fourth-quarter net income was $48.6 million on sales of $2.5 billion, versus the year-ago loss of $32.5 million and $2.67 billion.
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