News

Cargill reports earnings up 14% on flat revenues

29 Sep 2017

Cargill has reportednet earnings on a U.S. GAAP basis were $973 million, up 14% from $852 million a year ago. Revenues totalled $27.3 billion, edging ahead of last year’s $27.1 billion.

Cargill has reported financial results for the fiscal 2018 first quarter ended Aug. 31, 2017. Key results include adjusted operating earnings totalled $888 million, exceeding by 7% the $827 million earned in last year’s strong comparative period. Net earnings on a U.S. GAAP basis were $973 million, up 14% from $852 million a year ago. Revenues totalled $27.3 billion, edging ahead of last year’s $27.1 billion.

“We’re off to a good start in our new fiscal year, powered by the significant work we’ve done over the last few years and continuing to accelerate our performance,” said David MacLennan, Cargill’s chairman and chief executive officer. “Even as market conditions vary across our sectors, our teams are delivering for our customers and achieving results to fuel future growth.”

Food Ingredients & Applications was the second-largest contributor to company earnings, as continued attention to raising commercial capabilities and operating efficiencies yielded improved earnings. Cocoa and chocolate products, along with sweeteners and starches for food and other applications led results in most regions. The segment’s Asia-based businesses also realized improved volumes.

Adding to its portfolio of specialty ingredients, Cargill introduced canola lecithin to the market late last year. The company says that this versatile, label-friendly emulsifier can be used by food manufacturers in a wide variety of foods and beverages. In September, the ingredient received GRAS (Generally Recognized as Safe) status from the U.S. Food and Drug Administration.