Cargill reports ”solid” quarter

8 Jan 2016

Cargill has reported financial results for the fiscal 2016 second quarter and first half ended Nov. 30, 2015. Adjusted operating earnings in the second quarter were $574 million, a 13% decrease from $657 million in the same period a year ago.

Cargill reports ”solid” quarter

Cargill has reported financial results for the fiscal 2016 second quarter and first half ended Nov. 30, 2015. Adjusted operating earnings in the second quarter were $574 million, a 13% decrease from $657 million in the same period a year ago. For the first half, adjusted operating earnings were $1.19 billion, down 7% from the comparable period.

Second-quarter revenues decreased 10% to $27.3 billion, reflecting lower commodity prices and weaker demand in some markets. Revenues for the first half totalled $54.8 billion.

“Cargill posted a solid second quarter against a strong comparative period in the prior fiscal year,” said David MacLennan, Cargill’s chairman and chief executive officer. “Within the segments, we saw performance gains in key global businesses, including animal nutrition, grain and oilseed processing, most of our poultry operations, and several food ingredients categories.”

MacLennan noted significant progress in reshaping Cargill’s portfolio.

“We already see a stronger chocolate business emerging from the integration of our first-quarter purchase of ADM’s chocolate operations,” he said, “and we are delighted to welcome global salmon feed producer EWOS to Cargill, as it brings new markets and deep expertise in nutrition for cold-water species.”

MacLennan also cited the sales of the U.S. pork business to JBS USA Pork and the 50% share in North Star BlueScope Steel to Australia’s BlueScope Steel.

“Each business is well positioned for growth with an industry leader,” said MacLennan.

In mid-November, MacLennan announced a new leadership team for Cargill, responsible for the company’s strategic direction and the performance of its business segments.

“It’s fitting we take this action now,” he said, “as we celebrate Cargill’s 150th anniversary and position the company for success in the generations to come.”

Adjusted operating earnings in Food Ingredients & Applications slipped below last year, though efforts to strengthen operational and commercial execution continued to make good progress, the company said. Profitability in global starches and sweeteners pulled ahead of last year, as did cocoa and chocolate, and edible oils. Some of the staple foods units were hurt by weakening currencies and recessionary conditions in the emerging economies they serve.