Darling Ingredients Inc., a global developer and producer of sustainable natural ingredients from edible and inedible bio-nutrients, reported financial results for the third quarter ended September 27, 2014.
Net sales for the third quarter of 2014 increased to $955.8 million, compared with $425.8 million in the same period of 2013, attributable to newly acquired operations. Segment operating income in the third quarter of 2014 was $49.9 million, reflecting an increase of $8.3 million or 20 percent as compared to income for the same period of 2013. Including the company's share of net loss of unconsolidated subsidiaries, primarily the Diamond Green Diesel (DGD) Joint Venture, operating income for the third quarter of fiscal 2014 would have been $48.9 million or $4.7 million lower than the same period in 2013.
"In the third quarter, our business felt the pressures of the global resetting of ingredient prices," said Randall Stuewe, Darling Ingredients Inc. chairman and CEO.
"Overall, our raw material volumes were steady globally and we completed the acquisition of custom blenders, which is an excellent addition to our Bakery Feeds group," continued Mr. Stuewe.
"Diamond Green Diesel suffered a fire incident on August 3 which limited production during the quarter," Mr. Stuewe added. "The downtime at our DGD Joint Venture allowed the facility to proceed with a planned expansion increasing the input feedstock capacity to 11,000 barrels per day following the resumption of operations on September 18, 2014. Overall, we were thankful no one was injured and the DGD team seized the opportunity for expansion," concluded Mr. Stuewe.
Continued quarter results
Third quarter 2014 net income was $14.3 million, or $0.09 per diluted share, compared with net income of$27.7 million, or $0.23 per diluted share, in the third quarter of 2013. Results for the third quarter of 2014 and 2013 respectively, include the following after-tax costs:
- $1.4 million ($0.01 per diluted share) associated with the acquisition and integration of Rothsay and VION Ingredients during the third quarter of fiscal 2014. Fiscal 2013
- $5.3 million ($0.04 per diluted share) associated mainly with the acquisition and integration of Rothsay and VION Ingredients during the third quarter of fiscal 2013. Net income and diluted earnings per common share, adjusted to eliminate the one-time costs listed above, would have been $15.7 million and $0.10 per diluted share, respectively, for the third quarter of 2014.