Cargill posts strong first half
earnings from continuing operations for the 2003 second quarter, a
25 per cent rise on last year's figure of $256 million. The
company's net income for the first half now stands at $920 million.
Agribusiness Cargill this week reported $319 million in earnings from continuing operations for the 2003 second quarter, a 25 per cent rise on last year's figure of $256 million.
The private company said it also gained additional earnings of $2 million from one-time items, bringing overall earnings to $321 million for the quarter ended November 30, 2002.
Warren Staley, chairman and chief executive officer of Cargill, said the solid earnings were the result of its current strategy to focus on customers, innovation and performance.
"Today, we are doing more, especially with respect to new products, supply chain management and risk management services, to help our food and agricultural customers to succeed."
He added that the company has improved its ability to acquire companies with good strategic fit and integrate them into operations.
During the quarter Cargill bought Peter's Chocolate, a leading supplier of premium chocolates to the retail confectionery industry in North America. It also acquired Swiss animal nutrition company Provimi Kliba and Farmland Hydro, a Florida-based phosphate fertilizer producer. In a joint venture with Australian grain handler GrainCorp, it purchased the flour mixing and milling business of Goodman Fielder, now named Allied Mills.
"Our team has done an excellent job managing risk in weak economies and in more volatile commodity markets. And we've continued to increase efficiency and hold expenses in check."
Most of the food ingredient businesses delivered better results than a year ago, including many of the units operating under still challenging conditions in Argentina, Brazil, Venezuela and Ivory Coast, said Cargill. The company's global grain, oilseeds, sugar and cotton network performed well, as did its animal nutrition and beef processing businesses.
The financial businesses posted a steady first half, according to the firm, and the industrial segment began to recover from cyclic lows.
Earnings from operations for the first six months of fiscal 2003 were $664 million, an increase of 25 per cent from $533 million in the prior year's first half. Additional earnings of $256 million realized from non-recurring items brought the company's net income for the first half to $920 million.
