Cargill Doubles Annual Earnings
Cargill has reported new earnings of $2.31 billion for its 2013 fiscal year, nearly double the $1.17 billion realized in the prior year. Revenues totaled $136.7 billion, up 2% from last year’s $133.9 billion. Cash flow from operations was $4.18 billion, a 19% increase from $3.51 billion in fiscal 2012.
“Cargill’s earnings improved significantly over the prior year,” says Greg Page, Cargill chairman and chief executive officer. “Nearly all of our business units were profitable, and more than two-thirds exceeded year-ago results. We did a better job of delivering innovations and solutions that help our customers succeed. We also drew on our sourcing, logistical and risk management skills to navigate volatile commodity markets in the first half that were driven by severe weather.”
He says that recent changes taken by the company also have made a noticeable difference. “We took action to increase our speed and agility, while holding costs in line. We invested in assets that expand Cargill’s global reach and capabilities, and that support our customers as they seek to grow in new markets.”
Cargill currently has $2.6 billion of major agricultural, food and energy projects under construction, near completion or recently opened in 14 countries around the world. These include a poultry further-processing plant in Efremov, Russia; an integrated poultry production and processing complex in China’s Anhui province; additional poultry processing capacity in Korat, Thailand; an animal nutrition facility in South Korea; a corn processing plant in Brazil’s southern state of Paraná; a cocoa processing plant in Indonesia’s East Java province; and, in the United States, the establishment of a biorefinery campus in Fort Dodge, Iowa, and the modernization and expansion of a multiseed processing plant in North Dakota.
Among Cargill’s five business segments, the origination and processing segment was the largest contributor to consolidated earnings in both the full year. Results were up considerably from the prior year, with improved performance in grains and oilseeds in most geographies. The segment drew on Cargill’s global footprint and strengths in market analysis, logistics and risk management to overcome the supply challenges caused by weather disruptions and tight stocks, serving customers reliably. The segment also realized turnarounds in cotton and sugar from the prior year.
The food ingredients and applications segment also was a significant contributor to company results. Combined earnings among the segment’s food ingredient businesses edged ahead of last year’s record, even though many units were challenged by the effects of the North American drought and historically high commodity prices. Performance was particularly strong in sweeteners, starches and cocoa in several countries. Combined earnings among the segment’s animal protein businesses were down from last year, chiefly due to the negative impacts of drought, high feed costs and, in theUnited States, the tightest cattle supply in 60 years.
