MINNEAPOLIS – Cargill reported a double in net earnings for the fourth quarter that ended on May 31, 2018, and its yearly net income increased for the third straight year.
The company showed quarterly net earnings of $711 million, more than doubling last year’s mark of $347 million in the same period. Twelve-month net earnings increased 9 percent to $3.1 billion.
Adjusted operating earnings for the fiscal year, reached $3.2 billion, which is up 6 percent from the 2017 mark. Adjusted operating earnings for the fourth quarter were $809 million compared with $460 million reported in 2017.
"Our strong results show we are creating the connections the world needs for vibrant food and agriculture both today and tomorrow," said David MacLennan, chairman and CEO. "Cargill has always moved food from where it is produced to where it is needed. Today, we are pioneering new capabilities and partnerships to invest for the future."
Revenues for the fourth quarter climbed 7 percent to $30.4 billion. The full year figure for revenues grew 5 percent to $114.7 billion.
Cargill reported strong results from adjusted operating earnings in the company’s Animal Nutrition & Protein segment, making it the largest contributor to Cargill’s adjusted operating earnings in the fourth quarter and the full year.
“The protein business delivered an exceptional performance, fueled by rising domestic and export demand for North American beef and steady expansion in value-added egg products,” the company said in a news release. “Global growth in feed additives, micronutrients and premixes for customized animal nutrition also boosted earnings for the year. Excess supplies of chicken relative to domestic demand in Thailand contributed to a moderate decrease in global poultry results in both periods.”
In June 2017, the company acquired Pollos Bucanero, a chicken processing company that served retail and foodservice companies in and around Colombia for more than 30 years. The company is part of Cargill Protein Latin America and gives Cargill access to the regions of Colombia in addition to the countries it already serves, including: Costa Rica, Guatemala, Honduras and Nicaragua.
Earnings in the company’s Food Ingredients & Applications business rose for the third straight year. Cargill’s Food Ingredients & Applications segment is the second-largest contributor to company earnings.
The company’s Origination & Processing segment earnings exceeded 2017 quarterly and annual results, putting up its best fourth quarter in seven years.
Finally, results in the Industrial & Financial Services segment decreased slightly from 2017, with lower returns from fund investments and a softer fourth quarter overall.
“Trading results in metals rose appreciably for the year, supported by the segment's focus on market insights and analytics,” the company stated. “Cargill's energy and US steel processing businesses were sold in the first seven months, completing the segment reorganization.”