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Darling International Inc Reports Operating Results (10-Q)

August 09, 2012 | About:
10qk

10qk

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Darling International Inc (DAR) filed Quarterly Report for the period ended 2012-06-30.

Darling International Inc. has a market cap of $1.98 billion; its shares were traded at around $16.73 with a P/E ratio of 13.1 and P/S ratio of 1.1. Darling International Inc. had an annual average earning growth of 9.8% over the past 10 years.

Highlight of Business Operations:

During the second quarter of fiscal 2012, net sales were $436.7 million as compared to $470.6 million during the second quarter of fiscal 2011. The Rendering operations process poultry, animal by-products and used cooking oil into fats (primarily BFT, PG and YG), protein (primarily MBM and PM (feed grade and pet food)) and hides. Fat was approximately $226.1 million and $245.5 million of net sales for the three months ended June 30, 2012 and July 2, 2011, respectively, and protein was approximately $121.3 million and $120.4 million of net sales for the three months ended June 30, 2012 and July 2, 2011, respectively. The decrease in net sales was primarily due to the following (in millions of dollars):

During the second quarter of fiscal 2012, cost of sales and operating expenses was $314.1 million as compared to $325.2 million during the second quarter of fiscal 2011. Decreases in Rendering Segment cost of sales and operating expenses of $2.6 million and the decrease in Bakery Segment cost of sales and operating expenses of $8.7 million accounted for substantially all of the $11.1 million decrease in cost of sales and operating expenses. The decrease in cost of sales and operating expenses was primarily due to the following (in millions of dollars):

Income Taxes. The Company recorded income tax expense of $21.6 million for the second quarter of fiscal 2012, compared to $30.3 million recorded in the second quarter of fiscal 2011, a decrease of $8.7 million, primarily due to decreased pre-tax earnings of the Company in the second quarter of fiscal 2012. The effective tax rate for the second quarter of fiscal 2012 and fiscal 2011 is 37.4% and 36.7%, respectively, and differs from the statutory rate of 35% due primarily to state income taxes and qualified production deductions.

During the first six months of fiscal 2012, net sales were $823.8 million as compared to $910.5 million during the first six months of fiscal 2011. The Rendering operations process poultry, animal by-products and used cooking oil into fats (primarily BFT, PG and YG), protein (primarily MBM and PM (feed grade and pet food)) and hides. Fat was approximately $420.1 million and $481.7 million of net sales for the six months ended June 30, 2012 and July 2, 2011, respectively, and protein was approximately $224.8 million and $230.5 million of net sales for the six months ended June 30, 2012 and July 2, 2011, respectively. The decrease in net sales was primarily due to the following (in millions of dollars):

Income Taxes. The Company recorded income tax expense of $37.8 million for the first six months of fiscal 2012, compared to $57.0 million recorded in the first six months of fiscal 2011, a decrease of $19.2 million, primarily due to decreased pre-tax earnings of the Company in the first six months of fiscal 2012. The effective tax rate for the first six months of fiscal 2012 and fiscal 2011 is 36.8% and 36.6%, respectively, and differs from the statutory rate of 35% due primarily to state income taxes and qualified production deductions.

Read the The complete Report

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