Spencer, IA: Cargill’s fiscal 4th quarter earnings soared on strength in its grain-handling and food ingredients businesses.
The privately held company reported earnings of $483 million in the quarter that ended May 31st, up from $73 million a year ago.
The biggest contributor to the earnings jump was Cargill’s origination and processing segment, which includes trading and processing of agricultural commodities ranging from soybeans to sugar.
One of the world’s largest grain traders and meat processors, Cargill said it drew on its global footprint and market analysis to overcome tight supplies stemming from last year’s drought in the United States.
Cargill’s strong results stand in contrast to rivals Archer Daniels Midland and Bunge Ltd. ADM says its 2nd quarter earnings fell 21 percent; while Bunge reported a 50 percent drop in second-quarter earnings. Both companies blamed tight grain and oilseed supplies in the wake of last year’s drought in the U.S.