Cargill has reported a drop in fourth-quarter earnings from continuing operations on softer results from its food ingredients division and from lower earnings in its energy division.
The US food giant said today (9 August) that, for the quarter ended 31 May, earnings fell 7% to US$404m.
For the fourth-quarter, the company also recorded an additional $359m from discontinued operations, attributable to Cargill’s former majority investment in the Mosaic Company.
Over the quarter, however, revenue was up 32% to $34.8bn.
For the full year, earnings from continuing operations were up 35% to $2.69bn, while sales rose 18% to $119.5bn.
Chairman and CEO Greg Page said: “The past year presented a challenging operating environment for Cargill and our customers. From weather-related supply shocks in food commodities, grain export restrictions and rising energy prices to the uneven global economic recovery, looming sovereign debts and deficits, political unrest and natural disasters – the uncertainty led to volatile prices across a range of raw materials. Cargill sought to be a ‘port in the storm’ for our customers, sourcing food and feedstuffs from multiple origins, handling the logistics, managing the risk and delivering reliably.”
Origination and processing led the company’s full-year results, the company said, with results up for the quarter and the year. The food ingredients division reported a “softer” fourth-quarter but increased earnings on a year-on-year basis.