Darling International Inc. reported net income of $28.6 million, or $0.24 per share, for the first quarter ended March 31, 2012. Net sales and results of operations for the first quarter as compared to the same period of the prior year are as follows:
For the first quarter of 2012, the company reported net sales of $387.1 million, as compared to $439.9 million for the first quarter of 2011. The $52.8 million decrease in sales is primarily attributable to lower finished product selling prices for proteins and fats and lower raw material volumes. Export volumes dropped considerably compared to first quarter of 2011 adding further downward pressure to the finished product prices.
Net income for the first quarter of 2012 decreased to $28.6 million, or $0.24 per share, as compared to $46.6 million, or $0.43 per share, for the 2011 comparable period. The $18.0 million decrease in net income for the first quarter resulted primarily from lower raw material volumes and lower finished product prices. Comparing fourth quarter of fiscal 2011 results with first quarter of fiscal 2012, finished product prices continued to decline through most of the quarter with a rapid recovery beginning in March 2012. The mild winter weather provided historically low rendering volumes from mortalities.
Darling International Chairman and Chief Executive Officer Randall Stuewe said, "First quarter results were solid but lower as compared to the record setting first quarter of fiscal 2011 due primarily to a substantial drop in finished product prices for fats and proteins. The company built significant inventories in fats and proteins with export volumes all but coming to a standstill, and the bakery business processed lower volumes as commercial bakeries took abnormally longer winter shutdowns with markets remaining flat. Lower natural gas costs continue to positively influence earnings."
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 into 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.