Animal protein lift Cargill’s earnings

Worldwide
Published:  14 July, 2017

Agricultural commodities multinational Cargill has reported strong financial results for the fourth quarter and fiscal year ended May 31, 2017. 

In the second year of an ongoing transformation, Cargill said it has raised earnings across all four business segments in both periods. “It also advanced the capabilities, expertise and partnerships needed to be the leader in nourishing the world in the years ahead”, said a statement.

For the full year, adjusted operating earnings are reported to have reached U$3.04 billion, +85% from US$1.64 billion in the prior fiscal year. Net earnings on a U.S. GAAP basis were US$2.84 billion, a 19% increase year-on-year.

In the fourth quarter, adjusted operating earnings were US$460 million against the US$19 million adjusted operating loss recorded in the prior year. Net earnings were US$347 million, compared with US$15 million in the year-ago period. Revenues rose 4% to US$28.3 billion.

The Animal Nutrition and Protein segment was the largest contributor to adjusted operating earnings in the fourth quarter and full year; its results are reported to have been significantly up from last year, lifted by exceptional performance in global protein, especially in the first half. In North America, the protein business continued to experience strong consumer demand in the fourth quarter for beef at retail and for egg products from foodservice customers. Export demand for beef also was brisk.

In animal nutrition, Cargill converted a major facility in Columbus, Nebraska, from fresh to cooked meats and, at the start of fiscal 2018, Cargill acquired Pollos El Bucanero, one of Colombia’s leading producers of chicken and processed meat products.

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