GLOBAL - Meat producer Cargill has posted results for its first quarter fiscal 2016, showing a 20 per cent increase in net earnings from the same period last year.
Net earnings were $512 million, compared with last year’s $425 million. Adjusted operating earnings in the first quarter were $611 million, compared with $619 million in the same period a year ago.
Revenues were $27.5 billion, down 17 percent from $33.3 billion a year ago.
“Cargill posted a productive start to the new fiscal year, led by solid performance globally in grain and oilseeds processing and animal nutrition,” said David MacLennan, Cargill’s chairman and chief executive officer.
“Our team ably navigated the quarter’s weather-driven agricultural commodity markets.”
The Origination & Processing segment made the largest contribution to Cargill’s first quarter, with adjusted operating earnings up slightly from a year ago. Results for the grain and oilseed supply chain businesses within this segment rose considerably, based on effective positioning in agricultural commodity markets distinguished by persistent downward trends and occasional sharp price reversals.
Soybean crush results strengthened globally, boosted by improved capacity utilization in South America and an unusually long processing season in North America.
In the Animal Nutrition & Protein segment earnings decreased in the first quarter, with increased results in animal nutrition offset by lower earnings in animal protein.
Global animal nutrition earnings exceeded last year’s solid start due to higher sales volumes of customer-aligned products and services, and good cost management. Areas of particular strength included the US and Viet Nam, and aquaculture nutrition in Latin America.
Within the segment’s animal protein businesses, poultry results in Central America, Europe and the US rose on strong operational and marketing performance.
Unseasonable pressures in cattle and beef markets led to a weaker quarter in North American beef. Cattle costs remained high, and continued high beef prices caused consumers to seek less expensive alternatives such as pork and poultry.
TheCattleSite News Desk