Cargill reports results
(Posted on 27/09/19)
Cargill has reported results for the fiscal 2020 first quarter ended Aug. 31, 2019. Key measures include:
- Adjusted operating earnings were $908 million, up 3% from $883 million last year.
- Net earnings on a U.S. GAAP basis were $915 million, a 10% decrease from last year’s strong comparative of $1.02 billion.
- First-quarter revenues rose 1% to $29 billion.
“Our year started on a good note as we continued to help our customers navigate an unpredictable business environment,” said Dave MacLennan, Cargill’s chairman and chief executive officer. “Right now, we are focused on modernizing all aspects of our operations so we can effectively and efficiently provide our customers with solutions they value everywhere they do business.”
Adjusted operating earnings rose in two of Cargill’s four business segments: Animal Nutrition & Protein, and Industrial & Financial Services. They decreased in Origination & Processing and Food Ingredients & Applications. Notable results include:
- Global protein led the way, with strong results in North America as the business brought innovative solutions to customers to help them meet strong consumer demand for beef and eggs. Protein in Europe and Asia climbed due to good poultry performance in China, Thailand and the U.K. Similarly, protein in Latin America improved despite a difficult operating environment.
- Despite pressure from African swine fever, results improved in global compound feeds as the business combined an advantageous product mix with effective cost management. Aqua feeds also captured healthy results amid aquaculture’s high season.
- Starches, sweeteners and texturizers dropped primarily due to lower volumes in Europe and North America. Performance in cocoa and chocolate reflected a softening cocoa market in several regions and higher operating costs in chocolate in North America.
- Results declined for the company’s origination and processing businesses in most geographies, as trade- and weather-related disruptions continued to take a toll.
- The global trading business saw good year-on-year improvement, as it was well-positioned across commodities. The Asia-based metals business also used sound market reads and execution to gain over the prior year.
- Trade finance results were held back by fiscal deterioration in Argentina late in the quarter. In risk management, low prices and low volatility in agricultural markets decreased demand for hedging solutions.
During the quarter, Cargill expanded a joint venture and formed new partnerships:
- The company invested an additional $75 million in Puris, the largest manufacturer of pea protein in North America. This will help the firm more than double production by repurposing an existing facility in Minnesota to supply plant-based proteins, starches and fibers to food and beverage customers.
- Cargill formed a commercial partnership with InnovaFeed, a leader in producing protein for feed from insects, to jointly market these feeds as it seeks to support the growth of sustainable aquaculture worldwide. Similarly, an agreement with biotech company White Dog Labs provides Cargill with access to a fermentation-based protein for use in salmon feeds.
Members of the U.S. Grains Council (USGC) arrived in Tampa, Fla., for the organization’s winter... Read more
In 2019, Bühler delivered good performance at Group level, increasing the EBIT margin to 7.6% (... Read more
The World Coal Association (WCA) have been invited to visit the Tomakomai CCS Demonstration Centre in... Read more
RUSAL, one of the world’s major producers of aluminium, has appointed Ayumi Murakami as Representative... Read more
Rusal, one of the world’s largest aluminium producers, has invested approximately 600 million... Read more
Cleveland-Cliffs Inc., the largest and oldest independent iron ore mining company in the United States... Read more
SSY Futures Ltd is pleased to announce that it has arranged the first trade in Mid-Western Aluminium... Read more
ArcelorMittal has been recognised by CDP for its leadership on corporate transparency and action on... Read more
The founding members of the Covantis initiative, which aims to modernize global trade operations, have... Read more
In his role as the president pro tempore of the US Senate, Sen. Chuck Grassley, R-Iowa, signed the United... Read more