Cargill reports second-quarter earningsMINNEAPOLIS — Cargill today reported net earnings of $1.49 billion in the fiscal 2011 second quarter ended Nov. 30, compared with $489 million in the same period a year ago. Excluding earnings from its majority investment in The Mosaic Company, Cargill earned $832 million, nearly double last year’s $420 million.
MINNEAPOLIS — Cargill today reported net
earnings of $1.49 billion in the fiscal 2011 second quarter ended Nov.
30, compared with $489 million in the same period a year ago.
Excluding earnings from its majority investment in The Mosaic
Company, Cargill earned $832 million, nearly double last year’s $420
In the first six months, Cargill earned $2.37 billion, up from $1.01
billion a year ago. Excluding Mosaic, Cargill’s first-half earnings
were $1.53 billion, a 74 percent increase from $878 million a year
Consolidated revenues in the second quarter rose 16 percent to $31.1
billion, bringing the total through the first half to $58.9 billion.
"Cargill generated strong results across the breadth of our
businesses," said Greg Page, Cargill chairman and chief executive
officer. "The diversity and balance built into the mix provides the
company with a great deal of resilience. By tapping the connectivity
among our businesses, we also put more knowledge and insight to work
on behalf of customers. Increasingly, they look to Cargill for
innovation that supports their growth objectives."
Four of Cargill’s five business segments posted increased earnings in
the second quarter. Results were led by the origination and
processing segment, which developed an early and accurate read on the
first quarter’s weather events and subsequent shifts in trade flows
and supply-and-demand dynamics. This enabled the segment to serve
import-dependent customers with grain rerouted from alternate origins
while handling substantial volatility across agricultural commodity
Second-quarter earnings also rose in agricultural services, aided by
the bigger grain handling volumes made possible by the large North
Results in food ingredients were mixed, with some units benefited by
better volumes and gains from risk management activities and others
pressured by higher raw material costs. On a combined basis, segment
earnings increased moderately from the second quarter a year ago.
Industrial results were lifted by the increase in earnings from
Cargill’s majority investment in The Mosaic Company. Earnings
decreased in the risk management and financial segment, reflecting
sluggish demand in range-bound energy markets.
During the second quarter, Cargill agreed to acquire Unilever’s
shelf-stable condiments business in Brazil. The purchase includes
leading brands in tomato sauce and paste, and a processing facility in
the state of Goias. The acquisition, which is expected to be
completed in the first quarter of calendar 2011, would add to
Cargill’s stable of well-known brands of cooking oils, mayonnaise,
olive oils, olives and pasta sold today in Brazilian supermarkets.
In December, Cargill announced agreements related to two additional
Cargill agreed to acquire a majority share position in PT Sorini Agro
Asia Corporindo Tbk. Based in Indonesia, the company produces a wide
range of starch and starch-based products used in food, beverage,
cosmetic, personal care and pharmaceutical applications. The
acquisition, which is expected to be completed in the first quarter of
calendar 2011, would be an anchor for the future growth of Cargill’s
food ingredients business in Asia, particularly in Indonesia and
Cargill reached an agreement with Calgary-based Agrium to acquire its
AWB commodity management business. The business fits well with
Cargill’s existing operations in Australia. It should help us meet
growing food demand in Asia Pacific and around the world and allow us
more opportunity to help Australian producers manage their grain
marketing price risk and expand their access to global markets.
Subject to various approvals, Cargill aims to complete the
transaction in the first half of calendar 2011.