Cargill Fiscal results pulished

by Editor fleischwirtschaft.com
Tuesday, August 16, 2016
Cargill's Wichita Innovation Center
Photo: Cargill
Cargill's Wichita Innovation Center

Cargill reported financial results for the fourth quarter and full fiscal year ended May 31, 2016. The company is on a transformative path to strengthen financial performance, move in step with changing consumer values, and become the most trusted source of sustainable products and services for customers.
Adjusted operating earnings were $1.64 bill., a 15% decrease from the prior year. On a U.S. GAAP basis, net earnings totaled $2.38 bill., up 50% from fiscal 2015.

The variance between adjusted and net earnings included gains on sales of businesses and other assets, asset impairment charges and a LIFO inventory adjustment.

Revenues totaled $107.2 bill., an 11% decline that reflected lower commodity prices, a strong U.S. dollar and divestitures. Cash flow from operations equaled $3.41 bill.

The company recorded an adjusted operating loss of $19 mill. compared with a $230 mill. profit in the prior period. On a U.S. GAAP basis, net earnings were $15 mill. against a $51 milli.  loss in last year’s fourth quarter. Revenues dipped 5% to $27.1 bill.

Cargill delivered strong performance in global animal nutrition, value-added protein and poultry in many regions. In addition, the company posted good results in grain and oilseeds in South America and China, and in food ingredients such as salt, starches, sweeteners and texturizers. Trading activities yielded mixed results, in part due to low volatility in agricultural commodity markets for most of the fiscal year. Stalled growth in several emerging economies also affected earnings.

In recapping the year, Cargill realized more than $425 mill. from innovation, primarily new products and services. It saved more than $200 mill. by increasing efficiency in its plants and supply chains, and by scaling up global shared services.

Adjusted operating earnings in Animal Nutrition & Protein rose significantly in the fourth quarter. Full-year results edged below the prior year due to difficult market conditions globally in beef through the first three quarters, with some improvement in North America in the fourth quarter. Elsewhere, segment performance was strong, including in global animal nutrition, turkey and value-added protein in North America, and global poultry with the exception of China. Over the course of the fiscal year, Cargill acquired salmon nutrition leader EWOS; announced about $500 mill. in acquisitions and investments to grow its North American protein business; and partnered with Jollibee Foods, Asia’s largest foodservice company, to build a supply chain for specialty poultry products in the Philippines.

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