Chicago, Illinois, USA
August 31, 2016

GROWMARK announced its estimated financial results for fiscal year 2016, which runs from September 1, 2015 through August 31, 2016.

GROWMARK Chief Executive Officer Jim Spradlin reported unaudited, estimated sales of $7.1 billion, down from $8.7 billion last year. Pretax income is estimated at $103 million, down from $134 million last year. An estimated $52 million in patronage refunds will be returned to GROWMARK member cooperatives and farmer-owners.

“The ag economy is in a challenging cycle,” said Spradlin. “Many of our farmer-members and customers are feeling economic, regulatory and environmental pressures. While we do believe the economic cycle will end with a soft landing, it could certainly be a few years before stronger demand reappears. We remain very optimistic in the long-term outlook for food demand and production,” he added.

Operational highlights for the company’s business units were also reported at the annual meeting:

• The Energy Division’s estimated 2016 fiscal year earnings are likely to be the highest internal income in its history. Refined fuel volumes are flat; however sales of GROWMARK’s high-performance proprietary diesel fuel, Dieselex Gold, are up 12 percent. Lubricant volumes saw a slight decrease of seven percent compared to last year. Propane volumes are down approximately 30 percent due to the lack of grain drying last fall and a warm winter.
   
• The Seed Division reported seed corn sales down three percent, offset by four percent growth in soybean sales. Net income is estimated to be down slightly from 2015’s record year.
   
• The Crop Nutrients Division estimates sales volume similar to last year and is on the cusp of a sixth consecutive year of record volume. Net income is expected to be lower than last year.
   
• Crop Protection Division sales were down three percent from last year, but the third best volume and net income year in GROWMARK crop protection history.
   
• GROWMARK Retail Divisions internal income was up over last year. Seedway, headquartered in Hall, New York, saw a 15 percent increase in vegetable sales, and as a result, a record net income year.
   
• GROWMARK Retail Grain Partnerships, which operate 85 locations with 125 million bushels of storage capacity and a bushel volume of 225 million, is estimating net income lower than last year due to reduced drying and limited merchandising opportunities.
   
• FS Agri-Finance recorded a record $800 million of approved loans in 2016.

Website: http://www.growmark.com

Published: August 31, 2016