Cargill Food ingredients lift earnings
For the nine-month period ended 28 February, Cargill companywide had net earnings of $2.49 bn., up 5% over the same time period of the previous year. Adjusted operating earnings for the nine-month period were $2.58 bn., up 55% from $1.66 bn. Nine-month revenues were $81.4 bn.
Net earnings on a US generally accepted accounting principles (GAAP) basis were $650 mill., up 42% from $459 mill. in the previous year’s third quarter, the Minneapolis-based company reported. Adjusted operating earnings were $715 mill., up 50% from $476 mill. Cargill in the previous year’s third quarter realized gains from business divestitures, which were excluded from adjusted operating earnings. Revenues in the third quarter rose 8% to $27.3 bn.
Within Cargill’s Animal & Nutrition Protein segment, third-quarter earnings rose as animal protein performance improved against a weak third-quarter performance in the previous year. The North American protein business continued to benefit from renewed consumer demand for beef although earnings pace was below that set in the first half.
Food service demand for egg products was steady. Higher cooked chicken exports out of Southeast Asia and improved processing results and fresh chicken sales in Europe boosted the poultry business.
The Food Ingredients & Applications segment made the largest contribution to adjusted operating earnings in the third quarter. A favorable product mix in salts for food applications and seasonal sales volume in deicing products also boosted results in North America.
Within Cargill’s Origination & Processing segment, earnings in the third quarter slightly lagged last year’s third-quarter results. Within Industrial & Financial Services, the third-quarter performance was strong when compared to a weak third quarter last year.