USA, Minneapolis. Cargill reported results for the fiscal 2019 third quarter and first nine months ended Feb. 28, 2019.
Key measures include: The adjusted operating earnings were $604 milli., up 8% from the $559 mill. earned last year. This brought earnings for the first nine months to $2.34 bn., a 2% decrease from the prior year. The net earnings on a US GAAP basis for the quarter were $566 mill., a 14% increase from $495 mill. in the year-ago period. For the nine-month period, net earnings declined 3% to $2.33 bn. Third-quarter revenues decreased 4% to $26.9 bn., bringing the year-to-date figure to $83.5 bn.
Adjusted operating earnings across Cargill’s four business segments were below the year-ago level. The difference was offset by reduced spending among corporate functions and other cost reductions.
Animal Nutrition & Protein was the largest contributor to Cargill’s adjusted operating earnings. Within the segment, earnings in North American protein exceeded the year-ago period, boosted by continued strong domestic and export demand for beef as well as consumer demand for egg products. Higher production costs at Cargill’s poultry processing joint ventures in the Philippines and UK contributed to a decline in global poultry results. Two recently acquired value-added chicken processors – Campollo in Colombia and Konspol in Poland – both got off to a good start as part of Cargill. Increased sales volumes for salmon feeds in the North Sea region and functional feeds in North America improved earnings in aqua nutrition, but animal nutrition results in total trailed the prior year due in part to the outbreak of African swine fever in China and other countries, as well as unfavorable dairy economics in the US.
Food Ingredients & Applications delivered mixed results across the segment. Starches and sweeteners earnings declined on historically low ethanol prices in North America, and higher energy and raw material costs in Europe.