Arden Hills, Minn. (June 30, 2004) -- Dairy giant Land O'Lakes Inc. said it will restate its earnings for the last seven years after finding that a Carlisle, Pa., dairy facility was overstating profits.

LOL said the adjustments relate primarily to recording estimates of milk receivables and milk payables. The company estimates that it overstated net earnings by approximately $19 million, including an estimated tax benefit of $6.5 million, from 1997 through March 31, 2004.

LOL estimated that the overstatement increased net earnings by approximately $1.4 million in the first quarter of 2004; $2 million in 2003; and by $2 million to $5 million in each of the years ended Dec. 31, 1997, through 2002. The company said the overstatement represents about 3 percent of the net earnings it previously reported for the first quarter of 2004 and about 2.4 percent of its previously reported net earnings for the year ended Dec. 31, 2003.

The company said its audit committee is investigating the circumstances surrounding the adjustments. The company also brought in new personnel to oversee the accounting at the Carlisle facility and implemented accounting processes used in its other dairy foods operations to account for milk receivables and payables.

-- WebCPA staff

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