US rendering company Darling International Inc. reported fourth quarter net income of $29.5 million, and net income of $169.4 million for its fiscal year ended December 31, 2011.
Sales and results of operations for the fourth quarter and fiscal year as compared to the same periods of the prior year are as follows:
Fourth Quarter 2011
For the fourth quarter of 2011, the company reported net sales of $430.9 million as compared to $227.2 million for the fourth quarter of 2010.
The $203.7 million increase in sales is primarily attributable to the acquisition of Griffin Industries on December 17, 2010 as well as higher selling prices for the company's finished products as compared to 2010.
During the fourth quarter 2011 as compared to the third quarter 2011, the company experienced more than a 10% decrease in fat prices, primarily due to reduced export demand from European biodiesel, and more than a 12% decrease in protein prices, primarily due to soft protein meal demand domestically as a result of cut-backs by poultry producers.
Net income for the fourth quarter of 2011 increased to $29.5 million, or $0.25 per share, as compared to net income of $10.0 million, or $0.12 per share, for the 2010 comparable period.
The $19.5 million increase in net income for the fourth quarter resulted primarily from the acquisition of Griffin Industries as well as higher selling prices for the company's finished products.
Net income in the fourth quarter of 2011 as compared to the third quarter of 2011 was negatively impacted by the decrease in both fat and protein meal finished product prices, which impacted margins in our non-formula based business.
Fiscal 2011 CEO comment
Darling International Chairman and Chief Executive Officer, Randall Stuewe, said, "Fiscal 2011 was a record setting year for the company. Earnings performance was attributable to strong finished product markets driven by an improving global economy and continued implementation of global bio-diesel mandates.
“Additionally, a full year of integration efforts reflecting the late 2010 acquisition of Griffin Industries supported the company's performance.
“During fiscal 2011, the company watched values for the global feed grains, the oilseeds complex and used cooking oil escalate throughout the first half of the year, only to be tempered in the back half of the year by economic conditions in Europe.
“Overall, the company's raw material tonnage grew nicely in the beef segment and the company benefited from improved beef slaughter volumes driven by a return to profitability for both livestock producers and meat processors while poultry tonnage reflected cut-backs associated with higher input costs and challenged industry profitability for poultry producers.
“The bakery input volumes grew throughout the year as general economic conditions improved and commercial bakeries operated longer hours. Energy costs for natural gas were favourable. Overall operating costs were effectively managed and reflected the company's higher volume of inputs."
Fiscal 2011 in figures
For fiscal year 2011, the company reported net sales of $1,797.2 million as compared to $724.9 million for fiscal year 2010.
The $1,072.3 million increase in sales resulted primarily from the acquisition of Griffin Industries as well as higher selling prices for the company's finished products.
For fiscal year 2011, the company reported net income of $169.4 million, as compared to $44.2 million for the 2010 comparable period.
The $125.2 million increase in net income for fiscal 2011 resulted primarily from the company's acquisition of Griffin Industries as well as higher selling prices for the company's finished products.
Darling International Inc.
is the largest and only publicly traded provider of rendering and bakery waste recycling solutions to the nation's food industry.
The company recycles beef, pork, and poultry waste streams into useable ingredients such as tallow, feed-grade fats, meat and bone meal, poultry meal and hides.
The company also recovers and converts used cooking oil and commercial bakery waste to valuable feed and fuel ingredients.
These products are primarily sold to agricultural, pet food, leather, oleo-chemical and bio-diesel manufacturers around the world.
In addition, the company provides grease trap collection services and sells used cooking oil collection equipment to restaurants.