Cargill sales up, acquisitions, expansion high
US - As Cargill continues to expand its global supply chain, the company yesterday reported a 19 percent rise in its second quarter net earnings.The US agribusiness firm has announced that it made $495 million for the 2006 second quarter ended November 30, up 19 percent from last year's $415 million.
However, year-earlier results included a $597 million noncash net gain related to the formation of The Mosaic Company, a fertilizer company based in Minneapolis.
“Cargill delivered a solid quarter in a period marked by high energy prices and operational disruptions at the U.S. Gulf in the wake of Hurricanes Katrina and Rita. Our team did an excellent job serving customers and managing costs,” said Warren Staley, the company's chairman and chief executive officer.
Cargill's earnings were led by two segments: its origination and processing segment, which connects users and producers of grains, oilseeds, sugar and other commodities, and its risk management and financial operations, in particular the value investing activities.
Other large contributors included the company's US-based farm services, which benefited from large US corn and soybean crops, the US-based food ingredient businesses and the global group of poultry and pork businesses.
The strong solid results come on the back of a number of recent acquisitions. In November, Cargill and joint venture partner Temasek Holdings, an Asia investment group headquartered in Singapore, acquired UK-based CDC Group's palm plantation interests in Indonesia and Papua New Guinea. Cargill's existing plantation in Sumatra also became part of the new joint venture.
Source: Food Navigator
19 January 2006
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