021135 Farmland Announces $346.7M Loss in 2002November 27, 2002Kansas City, MO- Farmland Industries Inc. said it lost $346.7 million in its latest fiscal year, reflecting the difficulties that drove the nation's biggest farm-owned cooperative to file for bankruptcy reorganization in May. Farmland's fertilizer and petroleum businesses, which the company plans to sell, fared worst during the year that ended Aug. 31. Farmland also had $155.2 million in charges related to restructuring, reorganization and discontinued operations. The Kansas City-based cooperative, which lost $90 million in fiscal 2001, filed for Chapter 11 bankruptcy protection May 31 in part because of sharply lower sales of fertilizer — its biggest source of income. Farmland said its beef and pork businesses remain key to its recovery. Farmland blamed the continued downturn in the fertilizer manufacturing industry for losses of $121.8 million in its crop production segment. In 2001, the crop production segment lost $61 million. Bids for the fertilizer business were due Nov. 12. The company's petroleum segment lost $48.8 million in 2002, compared with profits of $62 million a year earlier. Earnings increased 72% to $59.7 million for Farmland's refrigerated foods unit, which includes the company's meat businesses. Overall, the company reported net sales of $6.6 billion in fiscal 2002, compared with sales of $9.2 billion the year before.
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