Create a free Feed & Grain account to continue reading

Louis Dreyfus Sees Drop in Profits

Company notes trade war, swine fever have impacted bottom line

Louis Dreyfus Company logo

Louis Dreyfus warned on Monday that international trade tensions and a swine disease epidemic would continue to weigh on its activities in the rest of the year after pushing down first-half profit, reports Reuters.

The interim results reversed a rebound in group profits in the second half of last year and showed the pressures on trading firms as they try to emerge from a period of falling margins for sourcing and shipping crops such as cereals and oilseeds.

Privately held Louis Dreyfus Co. (LDC) reported a first-half net profit from continuing operations of $73 million, down from $91 million in the same period last year.

A U.S.-China tariff dispute has shaken up the soybean market while the spread of African swine fever further dampened demand for soy-based livestock feed by decimating pig herds in China and other Asian countries, LDC said.

“LDC achieved sound results for the first half of 2019, in a particularly challenging environment,” Ian McIntosh, LDC CEO, said in the company's report. “Global trade tensions, erratic weather conditions, the spread of African swine fever in Asia and a general context of oversupply made it difficult to analyze and act upon market fundamentals, underlining our achievement for the period. Our strategy of maintaining a diversified portfolio and broad geographic footprint was once again key to our performance, underpinned by solid risk management expertise."

Page 1 of 282
Next Page