Darling International Inc. Announces Profits Increase in Second Quarter
PRNewswire-FirstCall
IRVING, Texas

Darling International Inc. reported sales and earnings for its 2002 fiscal second quarter and six months ended June 29, 2002 as compared to the same periods of the prior year.

For the 2002 second quarter, the Company reported net income of $1.2 million as compared to a net loss of $5.7 million for the second quarter of 2001. After a $0.3 million deduction for preferred dividends and accretion, the Company reported $0.03 per share applicable to common shareholders as compared to ($0.37) per share for the second quarter of 2001. The $6.9 million increase in net income for the second quarter 2002 resulted from an increase in net sales and other income, and a decrease in depreciation and amortization and interest expense, which more than offset an increase in selling, general and administrative costs and income taxes.

For the six months ended June 29, 2002, the Company reported net income of $1.8 million as compared to a net loss of $6.9 million for the 2001 comparable period. After a $0.3 million deduction for preferred dividends and accretion, the Company reported $0.06 per share applicable to common shareholders as compared to ($0.44) per share for the 2001 comparable period. The $8.7 million increase in net income for the six months ended June 29, 2002, resulted from an increase in net sales and other income, and a decrease in cost of sales and operating expenses, depreciation and amortization and interest expense, which more than offset an increase in selling, general and administrative costs and income taxes.

The Company's Chief Executive Officer, Denis Taura, stated that "the Company's return to profitability for the first two fiscal quarters of 2002, coupled with the successful completion of the May 2002 financial restructuring, reflect continuing efforts to enhance shareholder value."

Darling International Inc. is the largest publicly traded, food processing by-products recycling company in the United States. The Company recycles used restaurant cooking oil and by-products from the beef, pork and poultry processing industries into useable products such as tallow, feed-grade fats and meat and bone meal. These products are primarily sold to animal feed and oleo-chemical manufacturers around the world.

The Company's shares are traded on the American Stock Exchange under the symbol DAR. In Amex trading on August 13, 2002, Darling stock closed at $0.90 per share.

(This media release contains forward-looking statements regarding the business operations of Darling. These statements are identified by words such as "may," "will," "expect," "believe," "intend," "anticipate," "should", "estimate," continue," and other words referring to events to occur in the future. These statements reflect Darling's current view of future events and are based on its assessment of, and are subject to, a variety of risks and uncertainties, including business and economic conditions in its existing markets. Other risks and uncertainties regarding Darling, the industry in which it operates and the implementation of its business strategy are described in Darling's Form 10-Qs, the most recent filed May 14, 2002; Form 10-K/A filed April 29, 2002; Proxy Statement filed April 29, 2002 and Amendment No. 1 to the Registration Statement as filed on June 5, 2002. Darling undertakes no obligation to update any forward-looking statements made in this media release.)

                          Darling International Inc.
                        Consolidated Operating Results
            For the Periods Ended June 29, 2002 and June 30, 2001
               (Dollars in thousands, except per share amounts)
                                 (Unaudited)

                         Three Months Ended         Six Months Ended
                     June 29, June 30, $Change June 29, June 30,  $Change
                      2002     2001  Favorable  2002      2001   Favorable
                                   (Unfavorable)               (Unfavorable)
  Net sales         $62,044  $58,614  $3,430  $123,725  $122,248  $1,477
  Costs and
   expenses:
    Cost of sales
     and operating
     expenses        46,277   46,690     413    92,672    95,002   2,330
  Selling, general
   and administrative
   expenses           8,285    6,778  (1,507)   15,445    13,783  (1,662)
  Depreciation and
   amortization       4,235    6,488   2,253     8,627    13,302   4,675
  Total costs and
   expenses          58,797   59,956   1,159   116,744   122,087   5,343
  Operating income
   (loss)             3,247   (1,342)  4,589     6,981       161   6,820
  Other income
   (expense):
    Interest expense (1,385)  (3,267)  1,882    (5,271)   (6,494)  1,223
    Other, net          745   (1,112)  1,857     1,480      (537)  2,017
     Total other
      expense          (640)  (4,379)  3,739    (3,791)   (7,031)  3,240
     Income (loss)
      before income
      taxes           2,607   (5,721)  8,328     3,190    (6,870) 10,060
  Income taxes       (1,358)     ---  (1,358)   (1,358)      ---  (1,358)
    Net income (loss) 1,249   (5,721)  6,970     1,832    (6,870)  8,702
    Preferred dividends
     and accretion     (255)     ---    (255)     (255)      ---    (255)
    Net income (loss)
     applicable to
     common
     shareholders     $ 994  $(5,721) $6,715    $1,577   $(6,870) $8,447
  Basic and diluted
   income (loss)
   per share          $0.03  $ (0.37) $ 0.40    $ 0.06   $ (0.44) $ 0.50

   FOR MORE INFORMATION CONTACT:
   John O. Muse, Executive Vice President of
   Finance and Administration, or
   Brad Phillips, Treasurer
   972-717-0300

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SOURCE: Darling International Inc.

CONTACT: John O. Muse, Executive Vice President of Finance and
Administration, or Brad Phillips, Treasurer, both of Darling International
Inc., +1-972-717-0300