Cargill Company reports first-quarter fiscal 2016 earnings.

by Editor
Wednesday, November 04, 2015
Photo: Cargill

Cargill reported financial results for the fiscal 2016 first quarter ended Aug. 31, 2015. Key measures include: Adjusted operating earnings in the first quarter were $611 million, compared with $619 million in the same period a year ago. Net earnings were $512 million, a 20% increase from last year’s $425 million. Revenues were $27.5 billion, down 17% from $33.3 billion a year ago.

„Cargill posted a productive start to the new fiscal year, led by solid performance globally in grain and oilseeds processing and animal nutrition“, said David MacLennan, Cargill’s chairman and chief executive officer. „Our team ably navigated the quarter’s weather-driven agricultural commodity markets, as well as the effects of more volatile emerging markets, currency fluctuations and other macroeconomic uncertainty. Across the company, we made good headway on operational improvements aimed at strengthening business performance. The integration of ADM’s chocolate business is proceeding on target, and we are excited to welcome EWOS, a global leader in salmon nutrition, to our company.“

Adjusted operating earnings in Animal Nutrition & Protein decreased in the first quarter, with increased results in animal nutrition offset by lower earnings in animal protein. Global animal nutrition earnings exceeded last year’s solid start due to higher sales volumes of customer-aligned products and services, and good cost management.

Areas of particular strength included the U.S. and Vietnam, and aquaculture nutrition in Latin America. Within the segment’s animal protein businesses, poultry results in Central America, Europe and the U.S. rose on strong operational and marketing performance.

Unseasonable pressures in cattle and beef markets led to a weaker quarter in North American beef. Cattle costs remained high, and continued high beef prices caused consumers to seek less expensive alternatives such as pork and poultry.