Cargill earnings up sharply in quarter
October 15, 2007
by FoodBusinessNews.net Staff
MINNEAPOLIS — Cargill, Inc. reported net earnings of $917 million for the first quarter ended Aug. 31, which was up 83% from $500 million in the same period of the previous year.
"June through August was an extraordinary period, with growing demand for agricultural commodities against tightening supplies and a long anticipated but dramatic reduction in liquidity and leverage in financial markets," said Greg Page, Cargill chairman and chief executive officer. "All of this sparked a new level of market volatility. Because of our company’s global insight, the connectedness among our business and our supply chain and risk management competencies, we were able to put our knowledge and experience to work for the benefit of customers and the company."
The company’s origination and processing segment helped boost first-quarter results with the food ingredients and applications and industrial segments outperforming last year’s earnings as well. The agriculture services segment also performed well.
In the quarter, Cargill began purchasing remaining shares of Agrograin, which is a Hungarian grain company it purchased a minority interest in and formed a joint venture with in 1995. Additionally, Cargill announced plans to double the capacity of its canola processing plant in Clavet, Sask.