Land O'Lakes Declares $29.9 Million Loss

NEW YORK - Oct 26/04 - SNS -- Land O’Lakes, Inc. reported a loss of $29.9 million on sales of $1,800 million during the company's third quarter, compared to a net loss of $1.9 million on sales of $1,600 million during the same three month period last year.

The loss reduced net fiscal year to date earnings to $32 million on sales of $5,800 million, down from net earnings of $42.2 million on sales of $4,400 million during the first nine months of the 2003 fiscal year.

Company officials indicated year-to-date financial results include $28 million in unrealized pretax hedging losses, versus unrealized hedging gains of $7 million over the first nine months of 2003.

Land O'Lakes said under Generally Accepted Accounting Principles (GAAP), these hedging transactions must be marked-to-market at the end of each accounting period, but the offsetting impact to the underlying commodity exposure is not recognized until the hedged commodity is subsequently bought or sold.

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