Cargill Q3 profit up 33%
April 9, 2015
by Erica Shaffer
MINNEAPOLIS – Cargill reported third-quarter net earnings of $425 million, an increase of 33 percent from comparable year-ago period earnings of $319 million. Revenues for the quarter declined 11 percent to $28.4 billion.
The company's Animal Nutrition & Protein segment led performance, according to Cargill, with strong results in Australian beef processing, Central American poultry and US pork and turkey processing.
The animal nutrition business benefited from higher sales volume, although operations in Venezuela incurred a charge related to the country’s revision of its currency exchange system.
In Velddriel, Netherlands, Cargill opened an expanded animal nutrition innovation center, where scientists and university researchers collaborate on new product and services development for the company's customers in dairy, poultry and swine industries.
Additionally, Cargill divested a feed yard in Lockney, Texas, after the company stopped operations at its Plainview, Texas, beef processing plant in 2013. Cargill also closed a turkey slicing and packaging facility in Springfield, Mo., and relocated production to two other company locations.
“Cargill’s results were led by strong performance in our global group of meat and animal nutrition businesses,” said David MacLennan, president and CEO. “In volatile petroleum markets, we saw a rebound in our energy businesses, having gained momentum from strategic changes made in the prior fiscal year. Faced with slowing growth and currency shifts in a range of markets, our food segment lagged expectations.”
Nine-month earnings totaled $1.63 billion, up 13 percent from 2014; revenues during the period reached $91.97 billion.