Darling International Inc. Announces Third Quarter 2012 Results

       Darling International Inc. Announces Third Quarter 2012 Results

PR Newswire

IRVING, Texas, Nov. 8, 2012

IRVING, Texas, Nov. 8, 2012 /PRNewswire/ -- Darling International Inc. (NYSE:
DAR)  today reported net income of $37.2 million, or $0.31 per share, for the
third quarter ended September 29, 2012. Net sales and results of operations
for the third quarter as compared to the same period of the prior year are as
follows:

For the third quarter of 2012, the company reported net sales of $452.7
million as compared to $455.9 million for the third quarter of 2011. The $3.2
million decrease in sales is primarily attributable to lower finished product
selling prices in the rendering segment as a result of changes in supply and
demand in both the domestic and export markets for commodity fats. The lower
selling prices were partially offset by increased raw material volumes.

Net income for the third quarter of 2012 decreased to $37.2 million, or $0.31
per share, as compared to $41.1 million, or $0.35 per share, for the 2011
comparable period. The $3.9 million decrease in net income for the third
quarter resulted primarily from lower finished product selling prices that
were partially offset by increased raw material volumes.

Darling International Chairman and Chief Executive Officer Randall Stuewe
stated, "Our third quarteroperating performance remained solid, though fat
and grease prices continued to be sluggish driven by astrong slaughter,
increased supplies of corn oil, lagging export market and reduced biofuels
demand. Our finished proteins experienced significant market volatility after
lagging soybean meal most of the quarter before improving throughout most of
the country with the exception of California due to the reduced Indonesian
demand. The bakery segment contributed nicely with higher selling prices
combined with improved volumes."

For the nine months ended September 29, 2012, the company reported net sales
of $1,276.5 million, as compared to $1,366.4 million for the 2011 comparable
period. The $89.9 million decrease in sales resulted primarily from lower
finished product pricing and decreased raw material volumes mostly realized in
the first six months of the year.

For the nine months ended September 29, 2012, the company reported net income
of $102.0 million, or $0.86 per share, as compared to $139.9 million, or $1.22
per share, for the 2011 comparable period. The $37.9 million decrease in net
income for the nine months ended September 29, 2012 resulted primarily from
lower finished product selling prices and decreased raw material volumes.

Darling International Inc. is the largest and only publicly traded provider of
rendering and bakery waste recycling solutions to the nation's food industry.
The company recycles beef, pork and poultry waste streams into useable
ingredients such as tallow, feed-grade fats, meat and bone meal, poultry meal
and hides. The company also recovers and converts used cooking oil and
commercial bakery waste into valuable feed and fuel ingredients. These
products are primarily sold to agricultural, pet food, leather, oleo-chemical
and bio-diesel manufacturers around the world. In addition, the company
provides grease trap collection services and sells used cooking oil collection
equipment to restaurants. 

For additional information, visit the company's web site at
http://www.darlingii.com.

Darling International will host a conference call to discuss the company's
third quarter 2012 financial results at 8:30 am Eastern Time (7:30 am Central
Time) on Friday, November 9, 2012. To listen to the conference call,
participants calling from within North America should dial 877-317-6789;
international participants should dial 412-317-6789. Please refer to access
code 10019676. Please call approximately ten minutes before the start of the
call to ensure that you are connected.

The call will also be available as a live audio webcast that can be accessed
on the company's website at http://www.darlingii.com/investors.aspx.
Beginning one hour after its completion, a replay of the call can be accessed
through November 16, 2012, by dialing 877-344-7529 domestically, or
412-317-0088 if outside North America. The access code for the replay is
10019676. The conference call will also be archived on the company's website.

{This media release contains forward-looking statements regarding the business
operations and prospects of Darling and industry factors affecting it. These
statements are identified by words such as "may," "will," " begin," " look
forward," "expect," "believe," "intend," "anticipate," "should," "potential,"
"estimate," "continue," "momentum" and other words referring to events to
occur in the future. These statements reflect Darling's current view of future
events and are based on its assessment of, and are subject to, a variety of
risks and uncertainties beyond its control, including disturbances in world
financial, credit, commodities, stock markets and climatic conditions;
unanticipated changes in national and international regulations affecting the
company's products; a decline in consumer confidence and discretionary
spending; the general performance of the U.S. and global economies; global
demands for bio-fuels and grain and oilseed commodities, which have exhibited
volatility, and can impact the cost of feed for cattle, hogs, and poultry,
thus affecting available rendering feedstock; risks, including future
expenditure, relating to Darling's joint venture with Valero Energy
Corporation to construct and complete a renewable diesel plant in Norco,
Louisiana and possible difficulties completing and obtaining operational
viability with the plant; risks relating to possible third party claims of
intellectual property infringement; economic disruptions resulting from
European debt crisis; and continued or escalated conflict in the Middle East,
each of which could cause actual results to differ materially from those
projected in the forward-looking statements. Other risks and uncertainties
regarding Darling, its business and the industry in which it operates are
referenced from time to time in the Company's filings with the Securities and
Exchange Commission. Darling is under no obligation to (and expressly
disclaims any such obligation to) update or alter its forward-looking
statements whether as a result of new information, future events or
otherwise.}

Darling International Inc.
Consolidated Operating Results
For the Periods Ended September 29, 2012 and October 1, 2011
(Dollars in thousands, except per share amounts)
(Unaudited)
                  Three Months Ended                 Nine Months Ended
                                      $ Change                               $ Change
                  Sept 29,  Oct 1,    Favorable      Sept 29,    Oct 1,      Favorable
                  2012      2011      (Unfavorable)  2012        2011        (Unfavorable)
Net sales         $         $         $          $1,276,514  $1,366,383  $  
                  452,732  455,875  (3,143)                               (89,869)
Costs and
expenses:
  Cost of sales
  and             $         $         $          $          $          $   
   operating     327,909  326,882  (1,027)       918,516     953,437     34,921
  expenses
  Selling,
  general and
                 38,523    35,487    (3,036)        112,786     100,272     (12,514)
  administrative
  expenses
  Depreciation
  and            20,524    18,953    (1,571)        62,958      57,689      (5,269)
   amortization
Total costs and   386,956   381,322   (5,634)        1,094,260   1,111,398   17,138
expenses
Operating income 65,776    74,553    (8,777)        182,254     254,985     (72,731)
Other
income/(expense):
  Interest        (5,868)   (7,409)   1,541          (18,546)    (29,382)    10,836
  expense
  Other, net      232       (833)     1,065          (106)       (2,293)     2,187
Total other       (5,636)   (8,242)   2,606          (18,652)    (31,675)    13,023
income/(expense)
Equity in net
lossof
  Unconsolidated  (833)     (170)     (663)          (1,725)     (1,344)     (381)
  Subsidiary
Income from
operations        59,307    66,141    (6,834)        161,877     221,966     (60,089)
 before income
taxes
Income taxes      (22,135)  (25,009)  2,874          (59,909)    (82,045)    22,136
(expense)
Net income       $        $        $          $          $          $  
                  37,172   41,132   (3,960)       101,968     139,921     (37,953)
Basic income per  $      $      $         $       $       $    
share:            0.32     0.35     (0.03)        0.87        1.23        (0.36)
Diluted income    $      $      $         $       $       $    
per share:        0.31     0.35     (0.04)        0.86        1.22        (0.36)



For More Information, contact:
Melissa A. Gaither, Director of Investor       251 O'Connor Ridge Blvd., Suite
Relations or                                   300
Brad Phillips, Treasurer                       Irving, Texas 75038
                                               Phone: 972-717-0300

SOURCE Darling International Inc.

Website: http://www.darlingii.com
 
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