--Cargill, one of world's largest grain traders and meat
processors, reports 3Q profit falls 42%
--Drought weighs on meat-processing, grain-handling business
--Four of five business segments report lower earnings
Cargill Inc.'s fiscal third-quarter earnings fell 42% as severe
U.S. drought hurt meat-processing margins and its grain-handling
business.
Last year's Midwest drought, the worst in decades, decimated
U.S. crops, particularly corn, sending prices soaring and making
supplies scarce. Cargill and other meat processors struggled with
the higher feed costs. The suburban Minneapolis-based company in
February idled a 2,000-employee beef processing plant in Plainview,
Texas.
Cargill, one of the world's largest privately held companies,
does not break down specific results in its business, but said
earnings fell in four of its five business segments.
The company also blamed the drought, and smaller U.S. crops, for
lower earnings in the company's agriculture services segment, which
includes grain storage and farmer advisory services.
The company's origination and processing results were down from
a year ago, and profits also fell in its risk management and
financial segment.
A Venezuelan currency devaluation weighed on earnings in both
the company's agricultural services and its food ingredients
segments.
For the quarter ended Feb. 28, Cargill reported earnings of $445
million, down 42% from the same period a year ago. Revenue climbed
1% to $32.2 billion.
The only segment to report improved earnings from a year ago was
its industrial segment, which includes salt mining and sales. Sales
volumes of road deicing products increased, the company said.
Write to Ian Berry at ian.berry@dowjones.com
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