Cargill, one of the world’s largest suppliers of raw materials, saw its net earnings decline by 65% in the first quarter of the 2010 fiscal year. Cargill’s bottom line was negatively impacted by its majority investment in the Mosaic Company, a fertilizer company which saw a 91% profit decline in Q1. Revenues for the global supplier totaled $525 million for the quarter ended August 31, 2009. Last year’s Q1 revenues of $1.49 billion were the highest in company history.
Despite Cargill’s large first quarter decline driven by industrial segment losses, it was able to churn out earnings increases for its agricultural services and food ingredients segments. "Cargill posted a solid quarter, notwithstanding the comparison to last year's all-time record," said Chairman and CEO Greg Page in a prepared statement. "Our business unit earnings were broad based, and they were up considerably from the final two quarters of fiscal 2009.”
In its financial earnings press release, the company cites lower raw material costs, reduced operating costs and changes to product mix as drivers of growth in the food ingredient and agricultural services segments. Page expressed confidence in Cargill’s long term growth outlook, though he noted that the global economy is still very fragile.
Nutrition Business Journal explores the raw material and ingredient supply segment of the nutrition industry in greater depth in the upcoming October issue. Pricing trends, currency issues and quality concerns are among the topics discussed in the issue. To order a copy of the issue, subscribe to NBJ or download a free 32-page sample issue, go to NBJ’s subscription page.
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