--Cargill earnings soar in fourth-quarter, fiscal year
--Company says grain trading and processing biggest
contributor
--Results contrast with rivals who were hurt by drought
By Ian Berry
Cargill Inc.'s fiscal fourth-quarter earnings soared on strength
in its grain-handling and food-ingredients businesses, as the
company overcame the lingering effects of a historic U.S.
drought.
The privately held company reported fourth-quarter earnings of
$483 million in the quarter ended May 31, up from $73 million a
year ago. The results capped a fiscal year in which earnings nearly
doubled.
The biggest contributor to the earnings jump was Cargill's
origination and processing segment, which includes trading and
processing of agricultural commodities ranging from soybeans to
sugar. One of the world's largest grain traders and meat
processors, Cargill said it drew on its global footprint and market
analysis to overcome tight supplies stemming from last year's
drought in the U.S.
The company, based in suburban Minneapolis, does not break out
results from its various segments. It noted its food ingredients
segment posted record earnings, fueled by particularly strong
profits in sweeteners, starches and cocoa.
"Nearly all of our businesses units were profitable, and more
than two-thirds exceeded year-ago results," Chief Executive Greg
Page said in a statement.
The company said fourth-quarter results improved for its
agriculture services segment, and in its risk management and
financial segment.
Profit in its industrial segment, which includes road salt,
declined in the fourth quarter, but was higher for the full fiscal
year.
Cargill's fourth-quarter revenue increased 4% to $35.4 billion.
For the full fiscal year, Cargill, one of the world's largest
privately held companies, reported earnings of $2.31 billion, up
from $1.17 billion a year ago. Full-year revenue increased 2% to
$136.7 billion.
The company's strong results contrast with those of rivals
Archer Daniels Midland Co. (ADM) and Bunge Ltd. (BG).
ADM on Tuesday reported its second-quarter earnings fell 21%,
while Bunge reported a 50% drop in second-quarter earnings last
month. Both companies said tight grain and oilseed supplies in the
wake of the historic U.S. drought weighed on profits.
Write to Ian Berry at ian.berry@wsj.com
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