Darling International Inc. Announces Third Quarter 2006 Results

2006-11-10 | 11:38

Darling International Inc. reported sales and results of operations for the third quarter and nine months ended September 30, 2006 as compared to the same periods of the prior year. For the third quarter of 2006, the company realized net sales of $115.2 million as compared to $79.3 million for the third quarter of 2005. The majority of the $35.9 million increase in sales, which was partially offset by lower prices for finished products, is attributable to the company's acquisition of substantially all of the assets of National By-Products, LLC on May 15, 2006. Net income for the third quarter 2006 declined to $1.8 million or $0.02 per share, as compared to net income of $2.0 million, or $0.03 per share, for the 2005 comparable period. The $0.02 million decrease in net income for the third quarter of 2006 resulted primarily from: (i) significantly lower prices for finished protein products and fats; (ii) higher depreciation and amortization; and (iii) higher legal expenses related to certain actions in which the Company is the plaintiff. Darling International Inc. chairman and chief executive officer Randall Stuewe said, "Despite a generally more favorable operating environment in the third quarter, low finished product prices continued to weigh on our earnings. Overall, however, we are pleased that our raw material tonnage remains favorable, the integration of National By-Products is progressing, and energy costs have declined."