Lamb Weston Inc., the Northwest potato giant with

a substantial Mid-Columbia footprint, reported

significant revenue growth in a quarterly report released in early

January. 

It also suggested it could be on the cusp of

announcing a new production facility.  

Eagle, Idaho-based Lamb Weston (NYSE: LW) reported

net income of $140.4 million on more than $1 billion in revenue in

the second quarter of its 2020 fiscal year, which ended Nov.

24. Revenue grew by 12 percent, earnings by 18 percent relative

to 2019, the company said this month. 

It attributed the increase to growth in its global and

restaurant service segments. 

Lamb Weston has long been a pillar of

the Mid-Columbia. 

That only accelerated in 2016, when it spun out from

Chicago-based ConAgra Foods as an

independent, publicly-traded company with headquarters in the

Northwest. 

It

is one of the largest buyers of Washington-grown potatoes and employs thousands

in the Mid-Columbia at production plants, a research center in

Richland and at its corporate offices in Kennewick.  

It

has reliably paid dividends to investors since it became an

independent company and the latest quarter is no different.  

The

company announced it will increase its quarterly dividend by 15

percent, to 23 cents per share, payable on Feb. 28. In all, it said

it will return $72 million to shareholders in the first half of

fiscal 2020.  

It also

will continue to buy its own shares through its stock buyback

program.  

The company said it is building market share in

South America, where it has less than 2 percent of the french fry market,

through a $17 million agreement to buy a 50-percent

interest in an Argentinian frozen potato plant. 

It also appears poised to expand capacity in North

America as well, which could be tantalizing news for the

Mid-Columbia. 

Chief Executive Officer Tom Werner said he

wasn’t prepared to announce a new production facility

but indicated it will happen during a Jan. 3 earnings call with

analysts. 

He said the company is aggressively looking to expand

capacity in and outside of North America and would share expansion plans

soon. 

A new plant or production line would be a

significant addition to any community. 

Lamb Weston has added three french fry production lines

since 2014. It invested $200 million to add a french fry line at its

Richland campus, and, more recently, $250 million to expand in Hermiston. 

Werner said the company is well positioned to meet

its goals for fiscal 2020 after taking steps to secure the raw

potatoes it needs to produce frozen french fries.  

The company said it is currently not affected

by potato shortages in North America and Europe due to weather

and other issues.  

Washington and Idaho are apparently not affected by the

shortages affecting the Midwest and portions of Canada. 

“It’s really a little bit early to speculate on what’s

going to happen. We have an idea. But the most important thing for us is – we

got ahead of it,” Werner told analysts. 

Lamb Weston conservatively projects year-end revenue

will increase 7 percent in fiscal 2020. 

Investors reacted favorably to its strong earnings

report. Its share price rose more than 11 percent on the news, to nearly $94

per share on Jan. 3.