Business Cargill reports fiscal 2019 second-quarter results
Adjusted operating earnings were $853 mill., down 10% from the $948 mill. earned in last year’s strong comparative period. This brought first-half earnings to $1.74 bn., a 5% decrease from the prior year. Net earnings on a US GAAP basis for the quarter were $741 mill., a 20% decline from $924 mill. in the year-ago period. For the half, net earnings dipped 7% to $1.76 bn. Second-quarter revenues decreased 4% to $28 bn, bringing the year-to-date figure to $56.7 bn.
Animal Nutrition & Protein was the largest contributor to Cargill’s adjusted operating earnings, with results just below last year’s strong comparative quarter. Performance in North American protein moved higher, as robust demand for beef and large supplies of fed cattle boosted beef production and sales to domestic and export markets. Demand for egg products also drove protein earnings.
Continued political instability in Central America and market challenges in Southeast Asia reduced results in the segment’s global poultry business. Sales volumes for salmon and shrimp feeds in the North Sea region and Mexico, respectively, were up, but animal nutrition earnings trailed the prior year due to adverse market conditions in several regions. This included lower hog volumes in China and Vietnam, and unfavorable dairy and poultry economics in the US.
The company expanded in Colombia with the acquisition of Campollo, one of the country’s leading makers of chicken and protein products. The deal complements the purchase of Colombia-based Pollos El Bucanero last fiscal year and advances the segment’s strategy to serve growing protein demand in emerging markets with world-class poultry products.