Cargill full-year earnings up 36%
August 21, 2007
by FoodBusinessNews.net Staff
MINNEAPOLIS — Net earnings for Cargill for the fiscal year ended May 31 were $2.34 billion, up 36% from $1.73 billion during the previous year.
Cargill attributed the increase to additional earnings from operations and decreased income tax-related expenses in the third and fourth quarters. In addition, the risk management and financial, origination and processing, and industrial segments posted record results with the food ingredients and applications segments coming out ahead of last year as well.
Revenue for the year increased 17% to $88.3 billion.
During the fiscal year, the company reinvested most of its cash flow in food ingredient and supply chain capabilities. This included acquiring European-based LNB International Feed; adding an oilseed processing and refining capacity and corn sweetener capacity in China; expanding oilseed processing in Argentina; adding biofuel production capacity in Europe and the United States; and purchasing a flour milling and mixing business, grain export terminal and inland elevator network in Canada.
For the fourth quarter ended May 31, net earnings were up 75% to $628 million from $358 million during the same period of last year. The company said this was a reflection of increased earnings from operations and a decrease in income tax related expenses. In addition, each of Cargill’s five business segments exceeded the previous year’s earnings performance during the quarter.
"We are pleased to report Cargill’s fifth consecutive year of record earnings," said Warren Staley, Cargill chairman. "The company’s business diversity and global reach, our solutions approach to serving customers, and our team’s ability to manage supply chains and price risk in fast-changing markets were responsible for today’s results. We also benefited from the accelerated pace of economic growth in many parts of the world."