Homepage  Homepage     Search on site  Search on site     To write the letter  To write the letter     Site map  Site map
Agro Perspectiva
We are on: 
   
 


Home > News

Cargill reports fiscal 2017 fourth-quarter and full-year results

14.07.2017 11:10 "Agro Perspectiva" (Kyiv) — Cargill today reported strong financial results for the fourth quarter and fiscal year ended May 31, 2017. In the second year of an ongoing transformation, Cargill raised earnings across all four business segments in both periods. It also advanced the capabilities, expertise and partnerships needed to be the leader in nourishing the world in the years ahead.

Full-year results:

Adjusted operating earnings reached $3.04 billion, up 85 percent from $1.64 billion in the prior fiscal year. Net earnings on a U. S. GAAP basis were $2.84 billion, a 19 percent increase year-on-year.

Revenues grew 2 percent to $109.7 billion on higher sales of grain, oilseeds and metals.

Cash flow from operations climbed 38 percent to $4.69 billion.

Fourth-quarter results:

Adjusted operating earnings were $460 million in the fourth quarter, in sharp contrast to last year’s $19 million adjusted operating loss. Net earnings were $347 million, compared with $15 million in the year-ago period.

Revenues rose 4 percent to $28.3 billion.

«The past two years have seen significant work to improve performance and position the company for growth,» said David MacLennan, Cargill’s chairman and chief executive officer. «The structural improvements we’ve made, as well as favorable conditions in some markets, have yielded strong results. Although the environment continuously changes, we feel good about our underlying progress. By building a more integrated, focused and agile Cargill, we are creating the momentum for growth and success for our customers and partners.»

MacLennan noted that Cargill and its customers now operate in environments of much greater complexity. Mixed macroeconomic trends have left customers — from consumer branded and foodservice companies to farmers — looking for a partner with the expertise, reliability and forward-looking perspective that Cargill provides. «We want to be their most trusted partner in agriculture, food and nutrition. We’re in a stronger position today to deliver the solutions our customers seek.»

To drive financial performance in fiscal 2017 and beyond, Cargill:

Set a strategic direction to be the leader in nourishing the world in a safe, responsible and sustainable way.

Continued building differentiated capabilities for future growth, including digitalization and analytics, and sustainable supply chains.

Reshaped its business portfolio through $1 billion of investment in strategic acquisitions, joint ventures, and new or expanded facilities, as well as $700 million in divestitures of non-strategic assets.

Repurchased about $2.1 billion in long-term debt, which will lower future interest expense.

Segment results

Animal Nutrition & Protein was the largest contributor to adjusted operating earnings in the fourth quarter and full year. Segment results were up significantly from last year, lifted by exceptional performance in global protein, especially in the first half. In North America, the protein business continued to experience strong consumer demand in the fourth quarter for beef at retail and for egg products from foodservice customers. Export demand for beef also was brisk. Poultry posted higher earnings for the year, with increased exports of cooked chicken from Southeast Asia, higher fresh chicken sales in Europe and improved performance in China. Animal nutrition, which makes up the rest of the segment, saw earnings rise in the fourth quarter, as favorable trading and cost reductions offset the impact of environmental and market conditions that tempered feed demand in several countries. Full-year results in animal nutrition came in just above the prior year.

In animal nutrition, Cargill opened an innovation center in Chile dedicated to fish health and added feed mills in China, India and Indonesia. In protein, Cargill sold four cattle feed yards in the U.S. and an egg processing facility in Canada. It purchased Five Star Custom Foods in Fort Worth, Texas, which specializes in cooked protein products. It also converted a major facility in Columbus, Nebraska, from fresh to cooked meats. The company formed poultry joint ventures with leading food companies in Indonesia and the Philippines, and began expanding its own poultry processing capacity in Thailand. At the start of fiscal 2018, Cargill acquired Pollos El Bucanero, one of Colombia’s leading producers of chicken and processed meat products.

Food Ingredients & Applications was the second-largest contributor to earnings, with results up in both periods. The segment posted improved results across global ingredient portfolios in cocoa, and corn- and wheat-based products. Throughout the year, the segment focused on strengthening its operating efficiencies and commercial capabilities, including a modernized deployment of sales, marketing and technical resources to better serve customers’ changing needs.

During the year, the segment opened two innovation centers — in Shanghai focused on collaborative product development with food companies, and in Minneapolis for food and nutrition research and development. It completed two acquisitions in plant-based bio-industrials in Brazil and the U.S.

Origination & Processing turned around last year’s fourth-quarter loss with a profit in the current period. Slow farmer selling in South America extended U.S. export opportunities, which kept profitability in North America ahead of last year’s fourth quarter. For the full fiscal year, segment earnings exceeded the prior period as record U.S. crops were met with brisk demand from global growth in livestock production. Global trading performance added to segment results, even though opportunities were limited by low volatility in many commodity markets.

Over the course of the year, Cargill sold its U.S. crop inputs business, two oilseed processing facilities in France and the Netherlands, and its 40 percent share in a flour milling joint venture in Australia. It expanded crush volume at its oilseed plant in Três Lagoas, Brazil. In the fourth quarter, Cargill and local partners opened a large oilseeds processing plant and port facility in northern China in Hebei Province.

Earnings rebounded in Industrial & Financial Services, boosted in both the fourth quarter and full year by increased returns from asset management investments, excellent trading and customer-focused merchandising in North American natural gas and power markets, and solid performance in ocean shipping bolstered by improved market conditions. Full-year results also reflected a reduction in the counterparty risk adjustment made in last year’s fourth quarter.

Cargill completed the sale of its petroleum trading business to Australia’s Macquarie Group in early July 2017. At the start of fiscal 2018, Cargill agreed in a separate transaction to sell its natural gas and power business, also to Macquarie. Pending regulatory review, the sale is expected to close in the first quarter of fiscal 2018.

Accelerating impact

Cargill achieved significant milestones with a number of global partners this year. Cargill and CARE announced a $7 million, three-year extension of their partnership, having positively impacted 300,000 lives in seven countries since 2013. The two organizations will seek to reach a total of 1 million people by 2020 through the same proven approaches that have enabled their success to date: increasing farmers’ productivity, market access and livelihoods, as well as improving food and nutrition security, community governance and education resources. Cargill and CARE have worked together for more than 50 years, with Cargill investing $18 million in their joint efforts since 2008.

Ongoing work with The Nature Conservancy and World Resources Institute helped drive progress in ending deforestation, protecting water resources and curbing greenhouse gas emissions to mitigate climate change. And a new $3 million Cargill grant will assist Feeding America, the largest hunger relief organization in the U.S., with nutrition education, increased access to fruits and vegetables, diabetes prevention and food safety measures.

To ensure students can learn and prepare for the future, Cargill joined with World Food Program USA to launch a $1 million school meals program that will benefit 100,000 students in Honduras, Kenya and Indonesia over the next two years. In the company’s headquarters region of the Twin Cities, education and nutrition programs supported by the Cargill Foundation reached more than 300,000 schoolkids during calendar 2016. Worldwide, Cargill invested $13 million in fiscal 2017 to improve access to science, technology, engineering and math (STEM) education and agricultural leadership programs.

«We know that building a resilient food and agricultural system will require many hands and varied approaches,» MacLennan said. «Working alongside our customers, leading NGOs and academic institutions, and farmers everywhere, Cargill and our employees are accelerating our impact to help the world thrive.»

Agro Perspectiva

< Tusk thanks Ukrainians for their European loyalty All news for
14.07.2017
Groisman: Government is developing a targeted farm support program >

28.03.2024  
12:55 Council compromise on Ukraine ATMs – Only a half step forward in the right direction
09:18 Commission approves amendment to Italian State aid scheme to support companies in Friuli Venezia Giulia in the context of Russia's war against Ukraine
26.03.2024  
10:55 Projected famine in Gaza: FAO urges immediate access to deliver urgent and critical assistance at scale. About 1.1 million people are experiencing catastrophic food insecurity
08:44 EU makes major step forward in the delivery of 2024 humanitarian aid for Palestinians in Gaza*
25.03.2024  
16:17 Commission approves ˆ86.9 million Bulgarian State aid scheme to support farmers in the context of Russia's war against Ukraine
21.03.2024  
11:15 Commission takes action to boost biotechnology and biomanufacturing in the EU
20.03.2024  
11:13 Deal to extend trade support for Ukraine with safeguards for EU farmers
19.03.2024  
09:43 CAP - The Commission proposes simplifications that safeguard agricultural transitions!
18.03.2024  
23:10 The European Union and Switzerland launch negotiations to deepen bilateral relations
10:05 Commission proposes targeted review of Common Agricultural Policy to support EU farmers
15.03.2024  
23:36 Cargill Power CanolaTM Program Helps Farmers Take Advantage of Growing Bioenergy Market Opportunities for Canadian Canola
23:19 FAO will provide Ukrainian farmers with soybean and sunflower seeds for spring sowing campaign
13.03.2024  
23:27 FAO urges more cooperation in banana sector, significant for some least developed and low-income food-deficit countries and smallholder farmers
16:51 The European Commission sets out key steps for managing climate risks to protect people and prosperity
12.03.2024  
20:25 Coreper and COMENVI approve the provisional agreement on EU Carbon Removal Certification Framework
20:24 INTA MEPs fail EU producers by dismissing potential improvements to Ukraine ATMs
08:10 Soybean meal is expected to be a more competitive feed ingredient on higher global supplies.
11.03.2024  
09:11 U.S. Corn Exports Shift Destinations as Brazil Captures China Market
08.03.2024  
15:20 Conflicts push acute food insecurity higher
13:21 FAO Food Price Index declines further in February
13:14 Packaging: Council and Parliament strike a deal to make packaging more sustainable and reduce packaging waste in the EU
11:45 Commission approves ˆ61.3 million Bulgarian State aid scheme to support farmers, producers of grain and oil crops, in the context of Russia's war against Ukraine
07.03.2024  
20:41 First go-ahead to renewing trade support for Ukraine and Moldova
05.03.2024  
15:55 Commission proposes to prolong road transport agreements with Ukraine and Moldova and introduces updates to the agreement with Ukraine
02.03.2024  
07:31 Heroes of deserts and highlands: Nourishing people and culture
23.02.2024  
10:21 BASF’s financial strength supports proposed stable dividend of ˆ3.40 per share for the 2023 business year
10:17 The Council has chosen to ignore farmers' concerns regarding Ukraine ATMs; it is now imperative for the European Parliament to take action
20.02.2024  
20:27 South Asia is anticipated to import nearly 14 million tons wheat in 2023/24
19.02.2024  
13:00 Cargill and ENOUGH expand partnership to provide consumers with innovative, sustainable protein options
17.02.2024  
17:47 Global Environment Facility approves new FAO-led projects and programs benefiting 46 countries
16.02.2024  
09:10 The EU is at a crossroads with the Ukrainian agricultural issue - COPA-COGECA, AVES, CEFS, CEPM, CIBE, EUWEP
13.02.2024  
17:31 European farmers exempted from rules on land lying fallow
12.02.2024  
16:45 India Wheat Stocks Plummet to Lowest in 15 Years
03.02.2024  
17:35 Mandarins. Global production for 2023/24 is forecast to rise to 38.0 million tons
09:59 Record cereal output in 2023
07:15 FAO Food Price Index down again in January led by lower wheat and maize prices
29.01.2024  
10:32 President von der Leyen launches Strategic Dialogue on the Future of EU Agriculture
26.01.2024  
11:31 Record Exports Forecast for Egypt Oranges
23.01.2024  
17:55 With the Federal Chancellor in the show bakery
19.01.2024  
11:45 Organic production in Ukraine
16.01.2024  
23:25 Domestic consumption of dairy products may double in 2024 – analysts
12.01.2024  
23:53 Competition Tightens for Leading Pork Exporter
22:55 Peru Fish Meal Exports at Lowest Level Since 2015/16 El Niño
22:43 Grains Trade Disrupted by Challenges in Key Shipping Routes
10.01.2024  
15:38 In China, the largest import market for dairy products, surplus raw milk production led to government subsidies to stabilize the domestic processing sector
09.01.2024  
11:55 The FAO Sugar Price Index averaged 134.6 points in December, down 26.8 points from November
06.01.2024  
12:43 Polish fish and seafood imports continued to grow in 2022 and reached over $3 billion, with a $129 million (4 percent market share) originating from the USA
05.01.2024  
17:21 EU imports are dominated by unroasted green coffee beans, which accounts for about 90 percent of trade
17:00 FAO Food Price Index declines in December. Benchmark measure of world food commodity prices ends 2023 about 10 percent below its year-earlier level
29.12.2023  
09:53 Global and Bank of Georgia sign EUR50 million loan agreement to support small businesses

Also available: 


NewsNews - News - News - News - News - News
BriefWeekly Reports - Free article
SubscriptionTariff - News&Reports
AdvertisingMagazine - Site
ConferencesForum AGRO-2013 - DAIRY WORLD-2008 - FERTILIZERS-2010
Statistics
For our clientsAgroNewsDaily - Ukrainian Grain&Oilseed Market - Fertilizers - Milk Monthly - Milk Weekly
About usAbout project - Contact
2002 -2024 © Agrarika, ltd.
tel.: +380 67 4473802; +380 67 5964652
e-mail: client@agroperspectiva.com