Cargill sees substantial rise in earnings

10 Jan 2020

Cargill has reported results for the fiscal 2020 second quarter ended Nov. 30, 2019.

Adjusted operating earnings were $1.02 billion, up 19% from $853 million last year. For the first half of the year, this brought adjusted earnings to $1.93 billion. Net earnings for the quarter were $1.19 billion, up 61% from a year ago. The increase included gains from divesting Cargill’s malt business and financial subsidiary, CarVal Investors.

Cargill sees substantial rise in earnings

Net earnings for the first half climbed 20% to $2.11 billion. Second-quarter revenues rose 4% to $29.2 billion. Six-month revenues totalled $58.2 billion, a 3% rise.

“We saw very good execution from our global teams throughout the quarter, as they focused on delivering what matters for our customers,” said Dave MacLennan, Cargill’s chairman and chief executive officer. “Our ongoing transformation, as well as recent acquisitions and expanded capabilities, are all helping us continue to raise our performance.”

Adjusted operating earnings increased in two of Cargill’s four business segments: Animal Nutrition & Protein, and Industrial & Financial Services. They declined in Origination & Processing and Food Ingredients & Applications. Several global product lines of food ingredients saw softer results, including starches and sweeteners in Europe and Brazil, and edible oils in South America. Strong product deliveries kept cocoa and chocolate results near even with last year.

“Without bold and decisive action by all involved in the production of food, climate change will destabilize the food system,” MacLennan said. “As with all areas of our business, we are innovating alongside our partners in the supply chain to make sure we can nourish a growing world for years to come.”

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