Darling Ingredients Inc. reported net sales of $874.7 million for the first quarter of 2015, compared with net sales of $946.3 million for the first quarter of 2014.
The company said the $71.6 million decrease in net sales is primarily attributable to lower finished product prices, primarily global fat markets, and the foreign exchange rate impact of a weaker euro and Canadian dollar. Raw material volumes globally were stronger year over year.
"On a sequential basis, we have executed on a number of changes to improve operating performance in light of lower grain, protein and fat prices worldwide flowing through our business segments,” said Randall Stuewe, Darling Ingredients Inc. chairman and CEO. “We continue to focus on margin management, operating efficiencies and reduced administrative costs to offset the headwinds."
The company’s feed ingredients segment saw at 6.6 percent decline to $547.5 million, and a 5.6 percent drop in operating income to $35.4 million. The lower results were blamed on lower fat and corn prices and currency headwinds.
"The Feed Ingredients Segment saw improvement in margins. Our USA rendering business continues to deliver as predicted while Europe and Canada are delivering near investment case returns,” he said. “Strong slaughter of poultry and hogs combined with heavier market weights showed significant increases in raw material volumes. Lower energy prices for natural gas and diesel in the U.S. provided some relief to this global price re-setting environment."
"Overall, our business platform is solid and continues to grow organically with investments in five new processing facilities. We strive to build long term investor value creating sustainable ingredients for a growing population," Stuewe said.
Darling Ingredients Inc. Reports First Quarter 2015 Financial Results
Darling Ingredient’s (DAR) CEO Randall Stuewe on Q1 2015 Results – Earnings Call Transcript