February 27, 2013 - IRVING, TEXAS - Darling International Inc. (NYSE: DAR) today reported fourth quarter net income of $28.8 million, or $0.24 per share, and net income of $130.8 million, or $1.11 per share, for its fiscal year ended December 29, 2012. 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 2012
For the fourth quarter of 2012, the Company reported net sales of $424.9 million as compared to $430.9 million for the fourth quarter of 2011. The $6.0 million decrease in sales is primarily attributable to lower selling prices for the Company's finished products as compared to 2011. During the fourth quarter 2012 as compared to the third quarter 2012, the Company experienced more than a 12% decrease in fat prices, primarily due to reduced global biodiesel demand and an increase in supply of competing fats for animal feed. The drop in net sales was partially offset by a slight increase in pet food grade poultry meal and California protein prices.
Net income for the fourth quarter of 2012 decreased to $28.8 million, or $0.24 per share, as compared to net income of $29.5 million, or $0.25 per share, for the 2011 comparable period. The $0.7 million decrease in net income for the fourth quarter resulted from lower raw material volumes as a result of weaker slaughter and processor rates during late 2012, lower finished fat prices and the impact of a $2.1 million gain related to a 2011 fourth quarter purchase accounting contingency that did not re-occur in 2012.
Darling International Chairman and Chief Executive Officer, Randall Stuewe, said “Fiscal 2012 was another strong year. We enjoyed strong performances from both segments although lower fat prices and trade restrictions on MBM weighed heavily on the Rendering segment earnings during the last half of the year. Since, fourth quarter, we have seen values for our finished products improve and trade at more typical relationships to their alternatives. Our Bakery segment rebounded nicely in the second half of the year as volumes and earnings returned to expected levels. Diamond Green Diesel construction progressed and we anticipate a second quarter 2013 commissioning. Overall, we are pleased with our performance and positioning going into 2013.”
The following information was filed by Darling Ingredients Inc. (DAR) on Wednesday, February 27, 2013 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.
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Ticker: DAR CIK: 916540 Form Type:10-K Annual Report Accession Number: 0000916540-13-000006 Submitted to the SEC: Wed Feb 27 2013 4:57:11 PM EST Accepted by the SEC: Wed Feb 27 2013 Period: Saturday, December 29, 2012 Industry: Fats And Oils