Cargill reports net earnings down 65 percent

Cargill reports net earnings down 65 percent

Cargill on October 13 reported net earnings of US$525 million in the fiscal 2010 first quarter ended August 31, down 65 percent from last year''s record US$1.49 billion in the same period.

Cargill said the reduction was due a sizable drop in earnings from the company''s majority investment in The Mosaic Company. Cargill said earnings in its industrial segment, which includes The Mosaic Company, declined substantially compared to a year ago.

Cargill posted a solid quarter, notwithstanding the comparison to last year''s all-time record, according to Greg Page, Cargill chairman and chief executive officer. He said the company''s business unit earnings were broad based, and up considerably from the final two quarters of fiscal 2009. Focused on delivering solutions to customers, which drives the continuing investment in our people, facilities, technologies and innovation, Page said he is optimistic about "Cargill''s ability to grow and to help our customers succeed in this still-fragile world economy."

Among Cargill''s five business segments, earnings in agriculture services and in food ingredients and applications were up from last year''s first quarter, due in part to lower raw material costs, reduced operating costs and changes to product mix.

Risk management and financial results rose significantly, reflecting a return to profitability by its financial investment subsidiaries and good performance among the energy businesses.

Origination and processing earnings were solid, though down from last year''s record performance.

In the first quarter, Cargill announced the opening of three new facilities: a glycerin refinery next to its biodiesel plant in Frankfurt, Germany; a feed mill that processes co-products from adjacent Cargill facilities in Efremov, Russia; and a specialty canola research and production centre in Aberdeen, Saskatchewan, Canada. The centre complements the recent doubling of processing capacity at Cargill''s canola crush plant in Clavet, Saskatchewan, Canada and the upgrade of its canola seed facility in Idaho Falls, Idaho, US.