Land O'Lakes Sales Rise, But So Do Costs To Produce Eggs

Land O'Lakes Inc. on Tuesday posted what the company called a "solid, but mixed quarter," with sales rising nicely but profits falling back from last year's record levels.

The Arden Hills-based agriculture cooperative had first-quarter sales of $3.9 billion, up 12 percent from a year ago. But its net profits of $85 million were down 16 percent from last year.

Earnings were hurt by declining dairy markets and higher input costs in the company's egg business. Chicken feed is normally the biggest cost for egg producers.

"Our first-quarter results reflect the level of volatility and uncertainty we continue to see across our industry," Land O'Lakes Chief Executive Chris Polcinski said in a news release.

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