US Cargill reports 69% year-on-year drop in quarterly earnings

18 August 2009 22:07  [Source: ICIS news]

HOUSTON (ICIS news)--US agribusiness major Cargill reported net earnings of $327m (€232m) in the fiscal 2009 fourth quarter ended 31 May, down 69% from $1.05bn in the same period a year ago, the company said on Tuesday.

For the full fiscal year, Cargill had earnings of $3.33bn, a 16% decrease from a record $3.95bn in the prior year.

Revenues for the full year decreased 3% to $116.6bn. Cash flow from operations declined 6% to $6.7bn.

"The year was a tale of two halves," Cargill chairman and chief executive officer Greg Page said.

"Cargill posted record results through November,” he said. “In the second half, earnings slowed considerably as the world economy contracted for the first time in six decades. In the end, the net effect was the second-best year in our company's history."

Among Cargill's five business segments, fourth-quarter earnings in agriculture services and in food ingredients and applications were up from the prior year.

Earnings in the industrial segment, which includes Cargill's 64% majority investment in US fertilizer company Mosaic, were down significantly from the fourth quarter a year ago, the company said.

Mosaic reported in July that its fiscal fourth-quarter profit fell 83% to $147m as fertilizer demand fell.

($1 = €0.71)

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By: Frank Zaworski
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