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Darling announced second quarter 2013 earnings AMC today. Seeing as the ‘consensus estimate’ is based on a whopping 1 analyst estimate of $0.27, I’m not sure if I can call the $0.22 per share a miss, but we shall see how the market reacts (not that I care all that much). Lots of moving parts this quarter with the startup of diamond green diesel, so it may take a bit to figure it all out. Looks like DGD will require DAR to defer some profits, which will be a new twist in understanding DAR earnings.

I hope to listen to the call in the morning.

http://ir.darlingii.com/profiles/investor/NewsPrint.asp?b=16...

Darling International Inc. (NYSE: DAR)today reported net income of $26.4 million, or $0.22 per share, for the second quarter ended June 29, 2013.

For the second quarter of 2013, the Company reported net sales of $423.6 million, as compared to $436.7 million for the second quarter of 2012. The $13.1 million decrease in sales is primarily attributable to lower finished product prices for fats. Raw material volumes improved year over year but were partially offset by yield declines due to product mix.

Net income for the second quarter of 2013 decreased to $26.4 million, or $0.22 per share, as compared to $36.2 million, or $0.31 per share, for the 2012 comparable period. The $9.8 million decrease in net income for the second quarter resulted primarily from product mix within the rendering segment, lower finished product selling prices, higher SG&A expenses related to medical costs, Diamond Green Diesel startup expenses and $2.0 million of deferred profit on the sale of fats and greases to Diamond Green Diesel, the Company's renewable diesel joint venture with Valero Energy Corporation. Under applicable accounting standards, the Company is required to defer such profits until the feedstock is converted into finished diesel fuel and sold to an unrelated party.

Darling International Inc. Chairman and Chief Executive Officer Randall Stuewe said, "Our second quarter performance remained solid when compared to first quarter 2013. Finished product prices declined as lower pet grade poultry meal selling prices along with a declining selling price of Cookie Meal® more than offset a slight improvement in our fats and greases selling prices when compared to our first quarter. Volumes trended lower in the second quarter for rendering materials while cooking oil volumes showed their normal seasonal improvement. Additionally, we commenced startup of our Diamond Green Diesel JV with Valero at the end of June. The plant is operating well and is now running at name plate capacity of 9,300 barrels per day of renewable diesel."

For the six months ended June 29, 2013, the Company reported net sales of $869.0 million, as compared to $823.8 million for the 2012 comparable period. The $45.2 million increase in sales resulted primarily from higher selling prices for the Company's finished products and higher raw material volumes.

For the six months ended June 29, 2013, the Company reported net income of $58.8 million, or $0.50 per share, as compared to $64.8 million, or $0.55 per share, for the 2012 comparable period. The $6.0 million decrease in net income for the six months ended June 29, 2013, resulted primarily from higher SG&A expenses, lower yields related to product mix within the rendering segment and an increase in maintenance expenses. Higher poultry and pork raw material volumes along with increased protein prices had a favorable impact on operating income.



Greg
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