Company update: Cargill
Cargill’s fiscal second-quarter earnings more than tripled on strong returns from its Mosaic Co. stake and as most of the agribusiness giant’s units posted strong results.
US’ largest private company, active in global meatpacking, grain processing and food business is viewed as an industry leader and like rivals such as Archer Daniels Midland and Bunge has reported revenue growth lately amid tight global grain supplies.
For the quarter ended Nov. 30, Cargill reported a profit of $1.49 billion, up from $489 million a year earlier.
Excluding Mosaic Co., a fertilizer producer in which Cargill owns about a two-thirds stake, the company earned $832 million, nearly doubled the $420 million a year earlier.
Mosaic reported last week its fiscal second-quarter profit soared as sales rebounded sharply from year-earlier weakness and amid a $570 million asset-sale gain.
Revenue climbed 16%
The company saw earnings growth at four of its five business segments, led by origination and processing results thanks to an early and accurate read on weather events and subsequent trade-flow shifts.
The agricultural segment saw strong results, aided by bigger grain-handling volumes thanks to a large North American harvest.
Its industrial segment benefited from contributions from its Mosaic investment and food ingredients results were mixed, though overall segment earnings rose moderately.
The company’s risk-management and financial-services earnings declined amid sluggish demand in energy markets.
Cargill is one of the world’s largest commodity processors and traders, with other activities ranging from food ingredients to financial services and steel-making.
