Darling's 2Q Profit Down More Than Half

IRVING, Texas (AP) — Darling International Inc., which turns used restaurant oil and slaughterhouse byproducts into tallow, fats, and hides, said on Thursday that its second-quarter dropped by more than half as prices for its products fell.

The company said it earned $11.7 million, or 14 cents per share, during the quarter that ended July 4, down from $24.1 million, or 29 cents per share, during the period ending June 28, 2008. Revenue fell 29.7 percent to $155.3 million from $220.9 million a year earlier.

Analysts surveyed by Thomson Reuters were expecting a profit of 14 cents per share on revenue of $159.9 million.

The company blamed the revenue drop on lower prices on its finished products as well as less incoming food waste.

Chairman and CEO Randall Stuewe said business was still better than in the first quarter. Raw material volumes are showing signs of stabilizing and the company cut costs during the quarter, he said.

Darling shares fell 15 cents, or 2 percent, to $7.21 in late trading after the results were released. Earlier, they had risen 23 cents, or 3.2 percent, to close the regular session at $7.36.