January 20, 2006

Cargill 2006 Q2 earnings up 19 percent

Cargill reported a 19-percent jump in net earnings for its second quarter.

Net earnings of US$495 million were reported by Cargill for the second quarter of 2006, up from US$415 million for the same period the previous year. This excludes a US$597-million non-cash gain from the formation of The Mosaic Company.

In the first six months of fiscal year 2006, Cargill earned US$999 million, a 10-percent increase from US$910 million a year ago excluding the one-time net gain.

"Cargill delivered a solid quarter in a period marked by high energy prices and operational disruptions at the US Gulf in the wake of Hurricanes Katrina and Rita," said Warren Staley, Cargill chairman and chief executive officer.

Cargill said its second quarter results were led by two segments: global origination and processing, and risk management and financial, especially the value investing activities. Other key contributors to company earnings were its US food ingredient businesses and poultry and pork businesses.