Cargill books 19% hike in Q2 profit despite trade uncertainty, weather
Global agribusiness major Cargill said its second-quarter earnings rose 19% year-on-year as global meat, animal nutrition and protein demand rose.
The company, one of the so-called ABCD of global agribusiness majors, posted adjusted operating earnings for the quarter ended on November 30 of $1.02 billion.
That compares with $853 million during the same period in the previous fiscal year, according to an online statement published by Cargill on Tuesday.
The increase in earnings comes in two of the company’s four business segments, with Animal Nutrition and Protein, and Industrial and Financial Services booking higher profits.
In Origination and Processing, which includes the company’s grain handling and soybean crushing segments, and Food Ingredients & Applications, profits fell.
“Recent acquisitions and capital investments all had positive impacts in business like animal nutrition and global poultry,” the company said, adding the company’s preparation for the shipping industry switching to low-sulphur fuel this year also benefited earnings.
Quarterly revenue grew 4% on the year to $29.2 billion during the same period.
“Some of the regional origination and processing businesses continued to feel the negative impact of trade uncertainty and weather disruptions, particularly in North America,” the company said.
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