January 15, 2008

Cargill gains 44 percent increase in second-quarter fiscal 2008 earnings

Cargill reported today net earnings of US$954 million in the 2008 second quarter ended November 30, up 44 percent from US$662 million on-year.

In the first six months, the company earned US$1.87 billion, a 61-percent rise from the US$1.16 billion earned in 2006.

Greg Page, Cargill chairman and chief executive officer, noted that the company has invested upward of US$18 billion in fixed and working capital to expand the company.

Page added that with the growth of the company, they also got better in assessing risks in face of rapid price movements in the agriculture and energy markets.

The acquisition of market-leading companies in food and animal nutrition allowed Cargill to develop new capabilities, attract top-notch talent in fields new to the company.

Four of Cargill's five business segments increased earnings from the second quarter a year ago. The largest contribution came from the origination and processing segment, which sources, processes and distributes agricultural commodities and provides supply chain and risk management services to international customers.

The industrial segment, buoyed by global demand for fertilizers, was also up significantly. Two additional segments, the food ingredients and applications, and the agriculture services also improved performances.

Furthermore, Cargill is finalizing the conversion of its sweetener facility in Manchester, UK to a wheat grind from corn.

In animal nutrition, Cargill started up its fifth feed mill in Vietnam in Long An province.