Sharp drop in second-quarter earnings for Cargill

Worldwide
Published:  07 January, 2019

The international agricultural commodities producer reported net earnings down -20% in the second quarter of its fiscal 2019.

Cargill has reported net earnings on a U.S. GAAP basis of US$741 million in the second quarter, representing a -20% decline from US$924 million a year earlier. For the first half ended November 30, 2018, net earnings were down -7% to US$1.76 billion. Adjusted operating earnings were US$853 million (-10%), bringing first-half earnings to US$1.74 billion (- 5%). Second-quarter revenues decreased -4% to US$28 billion, bringing the year-to-date figure to US$56.7 billion.

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 is said to have moved higher, due to robust demand for beef and large supplies of fed cattle, which boosted beef production and sales to domestic and export markets. “Our teams executed in a world of uncertainty to bring the best solutions to our customers and the consumers they serve,” said Dave MacLennan, Chairman and CEO, Cargill. “Now, we are pushing to ready our businesses for the future with continuous improvement, financial discipline and a disruptive mindset.” 

Cargill says it recently brought together the shared insights of senior managers in Asia’s food industry to understand the challenges of nourishing a regional urban population set to reach nearly 2.5 billion by 2030. These insights are being shared in an ongoing series of reports published by the Economist Intelligence Unit. In November, a group of 30 Cargill Global Scholars from China, India and Indonesia visited the Company’s U.S. headquarters in Minneapolis to collaborate with peers from other regions and receive mentoring from senior executives. “These university students are studying in food and agriculture-related fields and will one day be leaders”, says Cargill.