Land O'Lakes has strong year, but 4Q loss
The CEO of Land O'Lakes says the company had record sales in 2008, despite struggling through a $33 million loss in the fourth quarter.
Like many other companies, Land O'Lakes finished 2008 on a down note. Falling prices for agricultural commodities hurt the Arden Hills-based cooperative.
But overall, Land O'Lakes had a strong 2008, with $12 billion in sales and net earnings of $160 million.
In a news release, Company CEO Chris Policinski said the year-end difficulties are likely to continue through this year. He says 2009 will be a "bumpy ride."
Policinski said the fourth quarter downturn in commodity prices narrowed profit margins, caused inventory write-downs and produced hedging losses for the company.
Land O'Lakes $160 million profit in 2008 was about $1 million less than the company's 2007 net earnings.
Land O'Lakes, a nationwide farmer-owned cooperative, processes the milk from more than 3,000 dairy producers from Pennsylvania to California and markets dairy products throughout the United States and 50 countries.
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