Strong Financial Results Confirmed for DFA22 March 2013
US - Dairy Farmers of America (DFA) ended 2012 with strong operating results from both commercial investments and increased earnings from affiliates.
The Cooperative’s net income increased more than 100 percent in 2012 — $83 million for 2012, compared to $40 million for 2011 — but after non-recurring items, DFA reported a net loss of $133 million for the year. Non-recurring items include a $216 million, net of tax, litigation charge in 2012 and a $77 million, net of tax, impairment/loss on exchange of affiliate interest in 2011.
Growth also included expansion of DFA's commercial investments. The Cooperative’s Fluid Milk and Ice Cream Division acquired Guida’s Dairy®, based in New Britain, Conn., and Cass-Clay® Creamery in Fargo, N.D.
In addition, more than 20 new products were launched in the Consumer Brands division under the Borden®, Cache Valley®, Plugrá® and La Vaquita® brands.
“We have worked for a number of years to improve DFA’s financial strength,” said Rick Smith, president and chief executive officer. “In 2012, we had a profitable year. This, combined with the support of the financial community, means we are in a position to manage the short-term impact of these non-recurring items on our overall balance sheet.”
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