Railway delays, Chinese corn rejections hinder Cargill

by Jeff Gelski
Share This:
Search for similar articles by keyword: [Cargill]
MINNEAPOLIS — The rejection of certain US corn shipments to China and weather-related disruptions to railway service in North America affected Cargill results negatively as net earnings dropped 28 percent in the third quarter ended Feb. 28. A trading loss related to a price spike in US power markets in late January, part of which has been recovered, also trimmed earnings, said David MacLennan, president and chief executive officer, when financial results were given April 8.

“External events affected our quarterly results, even as we saw operational improvements in key businesses,” he said.

Net earnings of $319 million in the quarter compared to $445 million in the previous year’s third quarter. Net revenues of $32 billion essentially were even from revenues in the previous year’s third quarter.
Third-quarter results rose in Animal Nutrition & Protein on increased operating efficiencies and exports in US and Australian beef.

Third-quarter earnings in Cargill’s Food Ingredients & Applications business were moderately below earnings in last year’s third quarter, which included one-time gains from a trade-related claim and the sale of a cultures and enzymes business. In this year’s third quarter, lackluster consumer demand tempered results as did additional costs from recent acquisitions and new or expanding facilities.

Earnings strengthened in Industrial & Financial Services. Earnings decreased in Origination & Processing because of costs related to China corn trade and limited opportunities in grain trading and storage.
Comment on this Article
We welcome your thoughtful comments. Please comply with our Community rules.



The views expressed in the comments section of Meat and Poultry News do not reflect those of Meat and Poultry News or its parent company, Sosland Publishing Co., Kansas City, Mo. Concern regarding a specific comment may be registered with the Editor by clicking the Report Abuse link.