Cargill Press Release | January 15, 2002
MINNEAPOLIS, MN--Cargill today, January 15, reported $234 million in earnings for the second quarter ended Nov. 30, up 34% from $174 million earned in the same period a year ago.
Earnings for the first six months of fiscal 2002 totaled $522 million, a 51% increase from the $346 million net income reported in last year's first half.
"Our results reflect a journey Cargill began several years ago to be less dependent on buying and selling commodities and more invested in solving our customers' problems," said Warren Staley, chairman and chief executive officer.
"We're doing more to help farm customers market their output successfully and to help food customers manage their supply-chain risks.
"That enabled us to post strong earnings in spite of the tragic events of Sept. 11, the deepening financial crisis in Argentina, the sudden bankruptcy of a major energy trader and a weak global economy."
The majority of Cargill's business units turned in improved results from a year ago, including food ingredients, the egg, poultry and pork processing businesses, animal nutrition, grain and cotton trading, and oilseeds processing.
The company's financial businesses also performed well. Lower energy costs, plus actions taken last year to cut costs and streamline operations, aided performance overall.
Cargill's involvement across the food chain also helped cushion several shocks.
"The beef industry was challenged by the slowing U.S. economy, the post-Sept. 11 falloff in restaurant dining and the sharp drop in Japanese beef imports, and all of those impacts came at a time when market-ready cattle supplies were large," said Staley.
"Although our cattle feeding business suffered losses, Cargill's ongoing shift to higher-value and branded meat products and our ability to adapt to changing consumer buying patterns helped us hold beef earnings to near last year's level.
"We also increased exports of pork and poultry products to Japan and accelerated shipments of soybean meal for use in animal feeds."
Results in fertilizer production and steel manufacturing continued to reflect ongoing global supply-demand imbalances in those two markets.
Looking ahead, Staley said that Cargill aims to bring noticeably better ideas and offerings to customers.
"At our core, Cargill is about nourishing people," he said.
"We're in a knowledge business, and we are changing how we come together as a company of diverse and enterprising people to make a valuable difference for food and farm customers."Cargill Press Release:
