UNITED STATES-CARGILL PROFITS DOWN.
Cargill reported a 68 percent decline in earnings in the quarter ended Feb. 28, noting all five of its business units have taken a hit from the global economic downturn.
The company reported net earnings of $326 million in its 2009 fiscal third quarter, down from a record $1.03 billion in the same period a year ago.
In the first nine months, the company earned $3.01 billion, up 4 percent from $2.9 billion a year ago. Excluding earnings from its majority investment in the Mosaic Company, however, Cargill’s results were below the year-ago level in both the third quarter and nine-month period.
The decrease in Cargill’s third-quarter earnings touched all five of the company’s business segments. Although performance within the segments was mixed, many businesses experienced weaker demand and lower sales volumes, as well as fewer trading opportunities as markets fluctuated within narrower ranges, the company said.
"Cargill’s earnings turned down in the third quarter, as the troubles in the global economy and financial system arrived at our company’s doorstep," said Cargill Chairman and CEO Greg Page in a news release. He noted that in mid-2008, Cargill began preparing for tougher times by cutting expenses, decreasing debt and curtailing non-base capital spending.
"When conditions come into place for a recovery on the broader economic front, with our fundamentals in place, we’ll be ready to build on those trends," Page added.
With 160,000 employees in 67 countries, Cargill provides food, agricultural and risk management products and services globally.