August 20, 2009

Cargill Q4 net earnings down 69 percent

Cargill has reported net earnings of US$327 million in the fiscal 2009 fourth-quarter ended May 31, down 69 percent from US$1.05 billion in the same period a year ago.

With earnings of US$3.33 billion during fiscal year 2009 - a decline of 16 percent from the US$3.95 billion in earnings the company posted during fiscal 2008 - the company still recorded its second best year in company history.

Sales for the year declined 3 percent to US$116.6 billion compared with the previous year.

In fiscal 2009, Cargill's five primary business segments all were rocked by explosive forces. Grain, energy and metal prices soared then plunged, jolting Cargill's core businesses as a handler, processor and exporter of food commodities.

For the fiscal year, earnings in the company's Origination and Processing business unit which includes the company's grain and oilseed supply chain interests as well as sugar business, were moderately below last year's record high.

The Risk Management and Financial segment incurred a loss but its energy businesses posted record results.

Cargill chairman and chief executive officer Greg Page expects the effects of the decline in world economic growth to persist for sometime.