Cargill Earnings Sink

NEW YORK - Aug 19/09 - SNS -- Cargill reported net earnings of U.S, $327 million for the fourth quarter ending May 31, down 69% from $1.05 billion in the same period a year ago.

For the full fiscal year, Cargill earned $3.33 billion, a 16% decrease from a record $3.95 billion in the prior year. Revenues for the full year decreased 3% to $116.6 billion.

"The year was a tale of two halves," said Greg Page, Cargill chairman and chief executive officer. "Cargill posted record results through November. In the second half, earnings slowed considerably as the world economy contracted for the first time in six decades. In the end, the net effect was the second-best year in our company's history."

Among Cargill's five business segments, fourth-quarter earnings in agriculture services and in food ingredients and applications were up from the prior year, reflecting steps taken by this diverse group of business units to reduce costs, adjust product mix and collaborate with customers on value-adding solutions.

The origination and processing segment posted solid profits, though down from last year's very strong fourth-quarter performance.

The risk management and financial segment incurred a loss related largely to financial markets activities.

Earnings in the industrial segment, which includes Cargill's majority investment in The Mosaic Company, were down significantly from the fourth quarter a year ago.

For the full fiscal year, earnings in the origination and processing segment were moderately below last year's record high.

Food ingredients and applications results also were down moderately.

The agriculture services segment finished just under the year-ago level.

The risk management and financial segment incurred a loss but its energy businesses posted record results.

The industrial segment, which includes Cargill's majority investment in The Mosaic Company, pulled ahead of last year due to a strong first half.

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