010438 Farmland Earnings Show Continued Improvement

Kansas City, MO - Farmland Industries announced that its financial results through the second quarter of fiscal 2001, continue to show significant improvement.

The cooperative's pre-tax earnings for the first six months of fiscal 2001 were $6.6 million, an improvement of $66.8 million from the prior year. For the second quarter, pre-tax earnings were $24.9 million ahead of last year.

Farmland President and CEO Bob Honse said, “During these difficult economic times in agriculture, our continued focus on profitability rather than growth has allowed us to significantly increase year-to-date earnings compared to the first six months of fiscal 2000.”

Increased earnings in the company's Petroleum and Crop Production business segments and significant reductions in selling, general and administrative expenses drove the improvement. Earnings increased in the company's Petroleum segment primarily due to increased refining and propane margins. Improved operating margins in the Crop Production segment were due primarily to management of natural gas positions and the start-up of the Coffeyville, Kan., nitrogen fertilizer plant, which uses petroleum coke rather than natural gas as a feedstock in the production of ammonia.

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