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Company update: Darling International Q2

Darling released its second quarter 2011 earnings on August 11th and by all accounts it was a very strong quarter. Darling reported second quarter revenue of $471. Further, the company generated $111 million of EBITDA.

For the second quarter of 2011, the company reported net sales of $470.6 million as compared to $166.2 million for the second quarter of 2010.  
 
The $304.4 million increase in sales is primarily attributable to the company's acquisition of Griffin Industries on December 17, 2010 and higher selling prices for the company's finished products.
 
Net income for the second quarter of 2011 increased to $52.2 million as compared to $11.4 million for the 2010 comparable period.  
 
Darling International Chairman and Chief Executive Officer Randall Stuewe said, "Second quarter performance tracked the first quarter results and our business continues to perform well. Earnings were positively influenced by strong finished product prices for fats, proteins and bakery products and the continued integration of Griffin Industries."
 
Half year results
For the six months ended July 2, 2011, the company reported net sales of $910.5 million, as compared to $329.0 million for the 2010 comparable period.
 
The $581.5 million increase in sales resulted primarily from the acquisition of Griffin Industries and higher selling prices for the company's finished products.
 
For the six months ended July 2, 2011, the company reported net income of $98.8 million as compared to $22.8 million for the 2010 comparable period.
 
Rendering specialist
Darling International collects and recycles animal by-products, bakery waste and used cooking oil from poultry and meat processors, commercial bakeries, grocery stores, butcher shops, and restaurants and processes the raw materials it collects and produces meat and bone meal protein, poultry meal, tallow, poultry grease, yellow grease, bakery by-products and hides.
 
The products are sold nationally and internationally, primarily to producers of animal feed, pet food, fertilizer, bio-fuels and other consumer and industrial ingredients, including oleo-chemicals, soaps and leather goods for use as ingredients in their products or for further processing.
 
Griffin acquisition
On November 9th, 2010 Darling announced the acquisition of Griffin Industries for $840mm in cash and stock. The deal closed in December 2010.
 
Post acquisition, Darling now operates over 125 processing and transfer facilities located throughout the United States to process the raw materials into finished products.

Dick Ziggers

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