Cargill Reports Profit Surge
Increased earnings from operations as well as a reduction in income tax expense resulting from the favorable resolution of various tax matters. In the first nine months, Cargill earned $1.71 billion, a 25 percent increase from $1.37 billion a year ago.
17/04/07 Cargill has reported net earnings of $553 million in the 2007 third quarter ended Feb. 28, up 49 percent from $370 million in the same period a year ago. Results reflected increased earnings from operations as well as a reduction in income tax expense resulting from the favorable resolution of various tax matters.
In the first nine months, Cargill earned $1.71 billion, a 25 percent increase from $1.37 billion a year ago. “Cargill posted a strong third quarter, which makes fiscal 2007 our company’s sixth consecutive year of improved performance through the first nine months,” said Warren Staley, Cargill chairman and chief executive officer. “The intersection we are seeing between global agriculture and energy is creating new demand as well as new challenges for all of us in agribusiness. Our team did a solid job managing the global trading, processing, distribution and risk management activities that support our customers’ solutions and supply chains. Cargill’s business and geographic diversity, including the outstanding performance of our financial businesses, has been a source of considerable strength this year.”
Earnings in Cargill’s risk management and financial, food ingredients and applications, and industrial segments increased from the third quarter a year ago. Although the origination and processing segment lagged the prior year’s third quarter, it was ahead of last year for the full nine months. Results in agriculture services were below the prior year’s level.
Cargill continued to invest in its core businesses, especially in emerging markets. The company completed the acquisition of LNB International Feed, a manufacturer and exporter of animal nutrition products. Based in Nistelrode, Holland, the company has operations in Poland, Romania and Suriname, toll manufacturing in Belgium and the Netherlands, and sales offices in the Netherlands and Russia. It exports to more than 40 countries. LNB specializes in mineral- and vitamin-based premix products, which complement Cargill’s larger global presence in the feed concentrate and complete feed segments of the animal nutrition industry.
