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Cargill
Reports Third-Quarter Earnings, Up 86% From Same Period Last Year
Minneapolis, MN—Cargill
reported April 14 net earnings of $1.03 billion in the 2008 third quarter
ended Feb. 29, up 86 percent from $553 million in the same period a
year ago.
Earnings in the first nine
months totaled $2.9 billion, a 69 percent increase from $1.71 billion
a year ago.
“Cargill posted a third
consecutive strong quarter in a year in which the dimensions of change
in global agriculture are striking,” said Greg Page,
Cargill chairman and chief executive officer.
“Demand for food in
developing economies and for energy worldwide is boosting demand for
agricultural goods, at the same time that investment monies have streamed
into commodity markets.
"Relative to demand,
world grain stocks today are at their lowest levels in 35 years. Prices
are setting new highs and markets are extraordinarily volatile.
"In this environment,
Cargill’s team has done an exceptional job measuring and assessing
price risk, and managing the large volume of grains, oilseeds and other
commodities moving through our supply chains for customers globally.”
Page said Cargill’s
global assets, market insight, diversification and risk management skills
have served the company well.
“Our business model
gives us the wherewithal to remain customer focused in a very challenging
operating environment.”
Four of Cargill’s five
business segments increased earnings from the third quarter a year ago.
The largest earnings contribution
came from the origination and processing segment, which sources, processes
and distributes agricultural commodities and provides supply chain and
risk management services to customers globally.
The industrial segment, which
benefited from global demand for fertilizers, also increased earnings
substantially.
Cargill’s food ingredients
and applications segment, a diverse and connected group of more than
40 food ingredient and meat businesses operating in Asia, Europe, Latin
America and North America, exceeded earnings from a year ago. Results
in agriculture services rose mostly on the improved performance of Cargill’s
global animal nutrition operations.
Earnings in the risk management
and financial segment were mixed but down overall from the third quarter
a year ago.
Adding to its animal protein
capabilities, Cargill acquired Freemans of Newent, a. U.K. chicken processing
business.
The company is being integrated
into Cargill’s global poultry operations.
For more information, call
952-742-6405.
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