Cargill Inc. saw its net earnings drop 20% in its latest quarter on trade uncertainty, stock market volatility, lower hog volumes in China and challenges in the U.S. dairy and poultry industries.
The Star Tribune reports the global agriculture behemoth, based in Minnetonka, MN, also took a hit from near-record low ethanol prices and a reduction in export demand of the energy source, which the company makes at its corn processing plants across the Midwest.
Three of the company's four major business segments posted declines Thursday morning for its second quarter ended Nov. 30. Cargill was up against a strong comparative period from last year, which was the company's second best performance in its history for the September-November quarter.
Highlights of Cargill's report include:
- Adjusted operating earnings were $853 million, down 10% from the $948 million earned in last year’s strong comparative period. This brought first-half earnings to $1.74 billion, a 5% decrease from the prior year.
- Net earnings on a U.S. GAAP basis for the quarter were $741 million, a 20% decline from $924 million in the year-ago period. For the half, net earnings dipped 7% to $1.76 billion.
- Second-quarter revenues decreased 4% to $28 billion, bringing the year-to-date figure to $56.7 billion.
Read Cargill's full report here.
