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 2019 third-quarter results

29.03.2019 14:25 "Agro Perspectiva" (Kyiv) Cargill reported results for the fiscal 2019 third quarter and first nine months ended Feb. 28, 2019. Key measures include:

Adjusted operating earnings were $604 million, up 8 percent from the $559 million earned last year. This brought earnings for the first nine months to $2.34 billion, a 2 percent decrease from the prior year.

Net earnings on a U. S. GAAP basis for the quarter were $566 million, a 14 percent increase from $495 million in the year-ago period. For the nine-month period, net earnings declined 3 percent to $2.33 billion.

Third-quarter revenues decreased 4 percent to $26.9 billion, bringing the year-to-date figure to $83.5 billion.

«Disruptions and uncertainty in the global business environment continued to present challenges during the quarter, but our teams captured greater efficiencies across the company,» said Dave MacLennan, Cargills chairman and chief executive officer. «We remain focused on our growth objectives. To achieve them, we are innovating what matters for our customers so they can win with consumers in local markets.»

Segment results

Adjusted operating earnings across Cargills four business segments were below the year-ago level. The difference was offset by reduced spending among corporate functions and other cost reductions.

Animal Nutrition & Protein was the largest contributor to Cargills adjusted operating earnings. Within the segment, earnings in North American protein exceeded the year-ago period, boosted by continued strong domestic and export demand for beef as well as consumer demand for egg products. Higher production costs at Cargills poultry processing joint ventures in the Philippines and U.K. contributed to a decline in global poultry results. Two recently acquired value-added chicken processors — Campollo in Colombia and Konspol in Poland — both got off to a good start as part of Cargill. Increased sales volumes for salmon feeds in the North Sea region and functional feeds in North America improved earnings in aqua nutrition, but animal nutrition results in total trailed the prior year due in part to the outbreak of African swine fever in China and other countries, as well as unfavorable dairy economics in the U.S.

Food Ingredients & Applications delivered mixed results across the segment. Starches and sweeteners earnings declined on historically low ethanol prices in North America, and higher energy and raw material costs in Europe. Lower sales volume and higher operating costs in North America trimmed otherwise strong cocoa and chocolate performance in other regions. Edible oils pulled ahead of last year on good positioning and operating efficiencies. In North America, wintry weather slowed bioindustrial sales to the road construction industry; at the same time, icy and snowy road conditions drove demand for deicing products. Sales of salts for food and water quality applications also contributed to improved salt results.

In early March, Cargill announced its intent to acquire Smet, a Belgium-based supplier of chocolate and chocolate decorations. The purchase aligns with Cargills intent to accelerate growth in specialty ingredients, as Smet would broaden product offerings and services to artisan, chocolatier and foodservice customers. Subject to information and/or consultation procedures with the appropriate employee representative bodies, the transaction is expected to close in the first half of calendar 2019.

Earnings in Origination & Processing reflected a challenging environment with ongoing trade tensions and other supply chain disruptions. In North America, soy and canola crush operations ran at high capacity, but the near absence of the Chinese market for plentiful U.S. soybean stocks reduced profitability. The trade turbulence also negatively affected soybean crush operations in China, as did lower demand for soybean meal for feed following the culling of hogs to control the spread of African swine fever. The segments European and South American operations both posted higher profits over the prior year, with soybean and soft seed processing leading the way in Europe, and corn and soybean origination improving in Brazil.

Announced last quarter, Cargill completed the formation of Grainbridge with Archer Daniels Midland. The technology joint venture will begin developing a suite of digital tools to give North American farmers market data and information on their grain marketing activities in a single platform at no cost to them.

Earnings in the Industrial & Financial Services segment were negatively affected by the industrywide impact of a mining disaster in Brazil in January that required the mine owner to cut iron ore production and exports to China. The incident caused iron ore futures prices in China to rise sharply, and Capesize vessel freight rates to fall significantly. Ocean shipping rates began to strengthen by quarter end, but concerns about a slowdown in global growth continued to weigh on markets. Elsewhere in the segment, the risk management business, which develops diversified risk management strategies for a wide range of customers, put up a strong quarter with balanced performance across agriculture, energy, metals and other product lines.

Innovative partnerships for sustained prosperity

Cargill is taking action to ensure the world has a food system that works for producers and consumers alike over the long term, while delivering on our commitment to deforestation-free supply chains. During the quarter, Cargill launched updated policies to strengthen protections for forests and promote rural agricultural development across our supply chains, with the launch of a South America Sustainable Soy Policy, a Human Rights Commitment and an updated Forest Policy. In conjunction with this, Cargill joined its fellow members of the Soft Commodities Forum in committing to a common framework for monitoring and reporting progress on transparent and traceable supply chains for soy in Brazils Cerrado region.

In February, Cargill and the World Food Programme Innovation Accelerator accepted applications for the Global Innovation Challenge for Zero Hunger. Startups, private companies and NGOs submitted proposals for bold solutions to sustainably lift people out of hunger. Selected teams will participate in a May bootcamp in Munich, Germany, where they will receive support from industry experts, including Cargill leaders, with the potential to receive up to $100,000 in equity-free funding for their projects. Cargill has committed $550,000 in support of the WFP Innovation Accelerator, part of $12 million that the company has provided to the World Food Programme over the years to improve the health and nutrition of people around the globe.

With the goal of benefiting 100 million people worldwide by 2030, Cargill is joining with Heifer International to launch the Hatching Hope Global Initiative. The program will seek to raise the prosperity of small-scale women farmers with training that enables them to expand and improve their poultry production. In addition to helping these farmers nourish their families, Hatching Hope will boost local economies and expand nutrition education. It will connect farmers to products, services and markets so they can become part of sustainable value chains in poultry. Cargill and Heifer debuted Hatching Hope last week at the 2019 Global Food Security Symposium hosted by the Chicago Council on Global Affairs in Washington, D.C.

«Our aim is to give farmers everywhere a leg up, so they can feed their children, send them to school, and lift their communities out of poverty,» said Chuck Warta, head of Cargills premix animal nutrition business and executive sponsor of Hatching Hope, who represented Cargill at the event.

About Cargill

Cargills 155,000 employees across 70 countries work relentlessly to achieve our purpose of nourishing the world in a safe, responsible and sustainable way. Every day, we connect farmers with markets, customers with ingredients, and people and animals with the food they need to thrive.

We combine 153 years of experience with new technologies and insights to serve as a trusted partner for food, agriculture, financial and industrial customers in more than 125 countries. Side-by-side, we are building a stronger, sustainable future for agriculture.

Agro Perspectiva

< Soybean Growers Unhappy with President Trumps Comments on Keeping Tariffs in Place under a China Agreement All news for
29.03.2019
Ukrainian Jan-Feb malt output 46,800 MT >

30.01.2023  
10:05 Global chicken meat production for 2023 is virtually unchanged from the October forecast at 102.9 MMT
27.01.2023  
17:49 South Africa exports of tangerines/mandarins are forecast to grow by almost 8 percent in 2022/23
15.01.2023  
08:36 Israels planted citrus area in MY 2022/23 is forecast to be 16,200 ha
08:03 Record South American Soybean Supplies Forecast Despite Falling Argentina Crop
07:35 China Total Meat Imports Forecast Higher in 2023
13.01.2023  
06:26 U.S. Sorghum Exports Fall Precipitously
07.01.2023  
19:25 World food prices dip in December. FAO Food Price Index ends 2022 lower than a year earlier
04.01.2023  
16:50 A $15.5 million EU-funded project aims to respond to disruptions to the agricultural sector caused by war
22.12.2022  
15:15 Somalia: FAO calls for fully funded, at-scale and sustained life-saving and livelihoods support to pull people from the brink of famine
12.12.2022  
23:32 Burma importing soybean meal to grow aquaculture industry
10.12.2022  
09:37 Argentina wheat exports fall while Australia soars
09.12.2022  
20:32 Record India Soybean Meal Premiums Disrupt Trade Flows
04.12.2022  
17:09 Global cereal production and trade forecast to fall to three-year lows
17:06 45 countries need external assistance for food
16:37 Global food prices overall hold steady in November
01.12.2022  
04:16 Cargill announces acquisition of Owensboro Grain Company
03:14 FAO and Pacific nations weigh local innovations as solutions to growing climate and nutrition challenges
02:37 Global Environment Facility tasks FAO and IFAD to lead new $230 million agrifood systems transformation program
02:15 Cargill Appoints Brian Sikes as President and Chief Executive Officer, and Dave MacLennan as Executive Chair of the Board
23.11.2022  
05:44 Australia sugar production for 2022/23 is estimated to rise slightly to 4.4 MMT
21.11.2022  
07:54 U.S. provides up to $20 mln for Grain from Ukraine initiative
07:25 Grain from Ukraine program foresees provision of at least 5 mln people with grain until end of spring 2023
16.11.2022  
10:02 World sugar production - 179.6 million tonnes - FAOs preliminary forecast
15.11.2022  
20:11 Rice. The 2022/23 global harvest is still envisaged to remain at an overall average level of 512.6 million tonnes
19:38 World wheat production is forecast to reach a record 784 million tonnes in 2022/23,
19:32 Alarming signs as the global food import bill set to rise to nearly US$2 trillion due to higher prices
10.11.2022  
13:35 Conflict on the Black Sea: a review of Ukraine sunflowerseed
08.11.2022  
08:12 Ukraine: FAO reinforces its presence to optimize technical and humanitarian assistance
02.11.2022  
09:52 Pork. Global production is forecast to rise 1 percent in 2023 to 111.0 million tons as production in China increases
09:33 Turkey raises tariff on imported sunflowerseed
09:24 India: The FSSAI's 2021 Draft Amendments to the Approval of Non-Specified Food and Food Ingredients Regulation is now a Final Amendment in 2022
31.10.2022  
08:00 New $250 million USAID grant will boost FAOs efforts to strengthen global health security and agrifood systems
07:45 Global market overview onions
28.10.2022  
07:00 China: Worlds Largest Walnut Producer Turns to Exports
27.10.2022  
08:44 Credit Union Member Farmers in Ukraine Receive Free Fuel Through Worldwide Foundation for Credit Unions Program
24.10.2022  
13:37 EBRD commits up to EUR3 billion to Ukraine
21.10.2022  
17:00 European Commission and EIB initiate feasibility study to better connect Ukrainian and Moldovan railway networks with EU
14.10.2022  
20:15 EBRD and United Kingdom join forces to back Ukrenergo
20:11 Canada and EBRD join forces to support Ukraines Naftogaz
12.10.2022  
21:03 Strong Farmer Selling Sparks Argentina Exports
20:32 EU Corn Imports Remain High with Smaller Crop
10.10.2022  
19:54 Inflation in Ukraine up to 1.9% in Sept, to 24.6% in annual terms - statistics
09.10.2022  
10:54 Turkey Peach and Nectarine Prospects Continue to Ripen
09:32 EU27 sugar production for MY 2022/23 is forecast at 16 MMT
07.10.2022  
11:35 World Bank improves forecast for growth of Ukrainian economy in 2023 to 3.3%
11:17 Asia-Pacific countries urged to rapidly transform agrifood systems as hopes fade for achieving the Sustainable Development Goals by 2030
11:11 Lower forecasts for 2022/23 global cereal output, utilization and trade
11:05 FAO Food Price Index drops for the sixth consecutive month
10:26 How sustainable forest management can enhance the worlds biodiversity
05.10.2022  
10:22 Turkeys pistachio production in MY 2022/23 is forecast to increase year-over-year to 210,000 MT

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 -2023 © Agrarika, ltd.
tel.: +380 67 4473802; +380 67 5964652
e-mail: client@agroperspectiva.com