Cargill has reported a fall in half-year profits but said earnings improved in three-quarters of its business in its second quarter.
The US agri-giant booked a 19% fall in first-half profits to US$1.13bn. The lower earnings came as a 36% jump in the second quarter failed to offset a slump in the first three months in Cargill’s financial year.
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In October, Cargill reported a 41% fall in first-quarter profits due in part to the impact of the severe drought in the US in 2012.
As a privately-owned company, Cargill does not provided detailed results for its divisions but said three of its four businesses reported better earnings in the second quarter.
Profits from food ingredients, animal nutrition and protein, plus its industrial and financial services division improved.
Cargill said earnings from animal nutrition and protein were up “significantly” as better crop production in 2013 helped the unit’s raw material bill.
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By GlobalDataEarnings from Cargill’s agricultural supply chain arm fell to a build-up in oilseed crush capacity across the industry.
Cargill’s first-half revenue was down 3.3% at $66.7bn. Second-quarter sales dropped 7% to $32.9bn.
