January 26, 2007

Cargill profits rise 34 percent to US$662 million
 

Agribusiness giant Cargill said its earnings rose 34 percent to US$662 million in its fiscal Q2 on strong results from selling and shipping commodities and in its financial trading unit.

Cargill said it earned US$1.16 billion for the six months ended Nov 30, up 16 percent from US$999 million a year ago.

Cargill said the quarterly profit increase was driven by origination and processing, which handles buying and shipping commodities such as corn, wheat, and soybeans, and by its risk management and financial arm, which makes investments in commodity prices and other financial markets.

The food ingredients and applications segment posted a modest increase from a year ago, while the performance of its agriculture services unit slipped.

Cargill continues to invest in its core businesses. In January, the company announced plans to purchase LNB International Food, a maker of animal nutrition premix products.

It recently announced plans through a subsidiary to build four new ethanol plants to nearly triple the ethanol production it directly owns.