Demand for beef helps Cargill

Worldwide
Published:  29 March, 2019

On a U.S. GAAP (Generally Accepted Accounting Principles basis), net earnings for the multinational producer and distributor of agricultural products, including hides, totalled US$566 million for the Company’s fiscal third quarter, a +14% increase from US$495 million a year ago.

Adjusted operating earnings were US$604 million in the quarter, up +8% from US$559 million in the corresponding period of the previous fiscal year, bringing earnings for the first nine months to a total of US$2.34 billion, a -2% decrease year-on-year. Third-quarter revenues decreased -4% to US$26.9 billion, bringing the year-to-date figure to US$83.5 billion. For the nine-month period, Cargill’s net earnings declined -3% to US$2.33 billion. 

Adjusted operating earnings across Cargill’s four business segments were below the year-ago level. The Company’s Animal Nutrition & Protein was the largest contributor to Cargill’s adjusted operating earnings, with earnings in North American protein exceeding the year-ago period, boosted by continued strong domestic and export demand for beef as well as consumer demand for egg products, according to Cargill.

“Disruptions and uncertainty in the global business environment continued to present challenges during the quarter, but our teams captured greater efficiencies across the company,” said Dave MacLennan, Chairman and CEO, Cargill.