Darling Ingredients(NYSE: DAR)announced second-quarter 2016 results Thursday after the market close. With the help of improvements in its feed segment and a recovery in its Diamond Green Diesel joint venture with Valero, shares of the rendering and biodiesel specialist are up around 3% in Friday's early trading as of this writing. So let's take a deeper look at how Darling put a cap on the first half of the year.
Diamond Green Diesel returned to full production during the quarter following 18 days of scheduled downtime for plant maintenance in Q1, and aforce majeure last quarterdue to flooding withinKansas City Southernrailroad's system.
Darling's share of adjusted EBITDA came to $18.3 million, up from $7.9 million in last year's Q2.
The joint venture also received a $156 million tax credit during the quarter.
Darling and Valero each received a dividend of $25 million in April.
Paid down $49.9 million in debt during the quarter.
What management had to say
According to Darling CEO Randall Stuewe:
The results show how we can capture notable gains when market conditions improve. Our business model continues to work and our team did a nice job of executing in highly volatile markets. [...]We've lowered our cost structure, continued to pay down debt and created a robust global business model that is diversified and increasingly focused on premium, value-add products. In the second quarter, the optionality within several of our businesses enabled us to take full advantage of a stronger market.
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