Cargill reports 36% rise in net earnings for Q2 fiscal 2014

Publish time: 10th January, 2014      Source:
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January 10, 2014


Cargill reports 36% rise in net earnings for Q2 fiscal 2014


For the fiscal 2014 second quarter ended November 30, Cargill reported net earnings of US$556 million, up 36% from US$409 million in the year-ago period, however, first-half earnings of US$1.13 billion were down 19% from US$1.38 billion one year ago.



The company''s second-quarter revenues decreased 7% to US$32.9 billion, which brought first-half revenues to US$66.7 billion.



David MacLennan, Cargill president and chief executive officer, said Cargill posted a solid second quarter, with earnings improved in three of four segments. "We also oversaw the opening of several new investments that support customers'' growth and success," he added. "The company''s results were supported in part by 2013''s improved crop production. The impact on supply and demand caused prices for agricultural commodities to come down from last year''s highs, providing relief to Cargill''s animal nutrition and protein segment."



Animal Nutrition & Protein earnings increased significantly brought about by lower input costs, good price-risk management and a well-managed mix of bulk, specialty and customised animal feeds. The animal protein businesses also realised the effects of new-crop supplies, which eased last year''s high feeding costs. Larger export volumes and increased operating efficiencies also contributed to stronger results, especially in beef processing. Cargill''s Food Ingredients & Applications segment increased slightly from the year-ago period and was the largest contributor to second-quarter results.



Cargillbegan processing corn into ethanol at its Fort Dodge, Iowa, corn wet mill that was purchased in 2011. The facility will anchor the development of a bio-refinery campus that can support the manufacture of other bio-based products.