Cargill income up 62% in quarter
October 13, 2008
by FoodBusinessNews.net Staff
MINNEAPOLIS — Thanks to strong results in the industrial segment, Cargill posted earnings of $1.49 billion for the first quarter ended Aug. 31, up 62% from $917 million during the same period of the previous year.
"Cargill realized a strong start to our new fiscal year in a continuing environment of outsized volatility in agricultural and energy markets and severe turbulence in financial markets," said Greg Page, chairman and chief executive officer "Our team’s attention to measuring and managing risk and exercising fiscal discipline allowed the company to respond to supply-and-demand fundamentals in fast-moving markets."
Another source of strength for the quarter was from the company’s investment in the fertilizer industry by means of its holdings in The Mosaic Co.
The origination and processing segment also did well, but earnings in agriculture services were down slightly. The food ingredients and applications segment was down slightly as the result of higher raw material and energy costs as well as the temporary shutdown of the corn processing plant in Cedar Rapids, Iowa, due to floods. The corn wet willing plant in Cedar Rapids has been rebuilt with all operations expected to be fully functional by November.