News

Cargill sees 2Q earnings decline 8%

4 Jan 2018

Cargill today reported financial results for the fiscal 2018 second quarter and first half ended Nov. 30, 2017. Adjusted operating earnings totaled $948 million, an 8 percent decrease against last year’s strong comparative of $1.03 billion.

Cargill today reported financial results for the fiscal 2018 second quarter and first half ended Nov. 30, 2017. Adjusted operating earnings totaled $948 million, an 8 percent decrease against last year’s strong comparative of $1.03 billion. For the first half, adjusted operating earnings stood at $1.84 billion, down 1 percent from last year.

Net earnings for the quarter on a U.S. GAAP basis were $924 million, down 6 percent from $986 million a year ago. First-half net earnings increased 3 percent to $1.9 billion. Second-quarter revenues rose 8 percent to $29.2 billion, bringing the year-to-date figure to $56.5 billion.

“Even as conditions vary across our global markets, we continue to realize greater benefits from operating as an integrated company with a unique combination of talent, assets, insights and solutions,” said David MacLennan, Cargill’s chairman and chief executive officer.

He noted that during the quarter, the company announced more than $1 billion in agreed acquisitions, joint ventures and new investments in facilities. “Thanks to the results of our recent strong performance, we are reinvesting in ways that enable our teams to achieve more for our customers and lead for growth.”

Earnings in Food Ingredients & Applications were up broadly, with a majority of the segment’s food ingredient businesses posting good gains for the quarter. Cocoa and chocolate products, malts for brewers, distillers and food manufacturers, as well as sweeteners and starches for food and other applications led results in most regions. The segment’s Asia-based businesses also contributed strongly to the quarter. Salt results decreased from the prior year, due in part to lower sales volume for deicing products after two mild North American winters. In addition to deicing and other industrial applications, the business serves food manufacturers with a wide range of salt ingredients and sodium reduction products.