October 1, 2018

 

Cargill reports fiscal 2019 first-quarter results

 

Cargill's revenues has risen 5% to US28.7 billion in the first quarter of fiscal 2019 (ended August 31, 2018), the company announced. 

 

According to Cargill, its adjusted operating earnings totaled US$883 million, closely matching the US$888 million earned in last year's strong comparative period. In addition, its net earnings on a US GAAP basis were US$1.02 billion, up 5% from US$973 million in the prior-year period.

 

 "Our customers are choosing Cargill more and more often because we provide them the confidence they need to win in a fast-changing world," said David MacLennan, Cargill's chairman and chief executive officer. "We give them an edge by connecting them to our team's expertise, unique capabilities and global network. Whether it's sustainably sourced foods and feeds, digitally driven insights, or supply chain risk management, we will continue innovating to provide an integrated set of solutions that meet their needs."

 

Adjusted operating earnings in animal nutrition and protein were just below last year's strong opening quarter, lifted by another good performance in North American protein.

 

Domestic and international demand for beef remained strong, as did food service demand for value-added egg products. In contrast, the US turkey meat market continued to be weighed down by excess supply relative to demand. Despite improved performance in China and Europe, a mix of challenges in Central America and Southeast Asia reduced results in the segment's global poultry business.

 

Earnings in animal nutrition also lagged the prior year due to varying combinations of higher input costs, lower sales volumes and pricing pressures in different countries. This was partially offset by gains in Latin America for micronutrients, premixes and feed additives.

 

As for the origination and processing segment, earnings were up appreciably from a weak comparative period.

 

Global demand was strong and markets volatile, as weather events in key crop-growing regions and rising economic uncertainty brought the segment's sourcing, trading, analytical and logistical skills to the fore.

 

Regionally, Asia Pacific improved performance with good trading and oilseed processing results, while North America and Europe realised solid oilseed processing results in canola, soybeans and biodiesel.

 

- Cargill