Cargill reports 30% gain in Q3 earnings
In the first nine months, earnings from continuing operations were $2.29 billion, a 47 percent increase from a year ago. The addition of $1.19 billion in earnings from discontinued operations brought Cargill's nine-month net income to $3.48 billion compared with $1.91 billion in the year-ago period.
Consolidated revenues excluding Mosaic rose 21 percent to $30.5 billion in the third quarter, bringing the total through the first nine months to $84.7 billion.
"Cargill posted solid earnings in a period of volatile commodity markets and geopolitical change," said Greg Page, Cargill chairman and chief executive officer. "All of us in agriculture are living with high levels of price volatility, in which small changes in the quantity of production are having dramatic impacts on price. Cargill's ability to focus on the factors of supply and demand, while gauging external events that can uproot market fundamentals temporarily, is critical to the risk management services we provide to our customers and to our own financial performance."
Four of Cargill's five business segments increased earnings in the third quarter. Results were led by the origination and processing segment, which used its global sourcing and risk management capabilities to fulfill customers' supply needs in spite of market disruptions. Food ingredients and applications, a segment that connects 40 food ingredient and meat businesses, increased earnings moderately. Many business units relied on operational efficiencies and price risk management to make up for higher input costs. Results in the risk management and financial segment improved from a year ago, reflecting better performance in stronger financial markets and in risk-sensitive energy markets. Industrial earnings also strengthened seasonally. Although earnings were down slightly, the agriculture services segment benefited from farm customers' demand for grain marketing and price risk management services.
Source: Cargill Inc.