Cargill Press Release | April 16, 2002
MINNEAPOLIS, MN--Cargill reported $161 million in earnings for the third quarter ended Feb. 28, up 63% from $99 million earned in the same period a year ago.
Earnings for the first nine months of fiscal 2002 totaled $683 million, a 53% increase from the $445 million net income reported for the first three quarters of last year.
"Cargill continued to benefit from a broader base of earnings worldwide," said Warren Staley, chairman and chief executive officer.
"The majority of our food ingredient businesses in Europe and North America, animal nutrition at home and abroad, the egg, pork and poultry processing units, and the export-oriented grain and oilseeds businesses delivered improved results from a year ago, although the third quarter was not as strong as the preceding two."
Earnings in Cargill's beef processing business were below last year's level due to the slower U.S. economy and weaker export market for beef and beef byproducts.
Cattle feeding losses incurred in the prior quarter were reduced.
Staley confirmed that company earnings were negatively impacted by the currency devaluation and deepening economic difficulties in Argentina.
"Cargill has operated in Argentina for 55 years.
"Our people are drawing on that experience to manage the company's exposure and help restore greater certainty to the country's domestic and export markets."
The third quarter also was marked by a strong and geographically balanced performance among Cargill's financial businesses.
Lower energy costs also contributed to higher company earnings overall.
Staley credited Cargill's stronger financial performance to good global teamwork, excellent risk management, a tight rein on costs and a relentless focus on creating and delivering shared value to customers.
"We at Cargill are developing a common mindset to discover and fulfill our customers' unmet needs in distinctive ways," said Staley.
"From farm to food, we are working to go beyond products to supply and service agreements, beyond transactions to mutually beneficial relationships and beyond price to shared value."
Staley noted that Cargill's decision to acquire Paris-based Cerestar, a global leader in starch and starch derivatives, complements the focus on helping customers succeed. Cargill acquired Montedison's 56% shareholding in Cerestar on April 4, and intends to initiate a public tender offer for the remaining 44% of Cerestar shares.Cargill Press Release:
