Cargill has reported a +5% increase in revenue for its first-quarter 2019 despite three of its four major business segments recording a decline in earnings.
In the three months to August 31, Cargill’s net income rose +5% on the previous year to US$1.02 billion, driven by strong international demand for beef and “solid” oilseed processing results. Revenue increased +5% in the period to US$28.7 billion, year-on-year.
Adjusted operating earnings in Animal Nutrition & Protein were just below last year’s strong opening quarter, lifted by another good performance in North American protein. Domestic and international demand for beef remained strong, as did foodservice demand for value-added egg products.
In contrast, the U.S. turkey meat market continued to be weighed down by excess supply relative to demand. Despite improved performance in China and Europe, a mix of challenges in Central America and Southeast Asia reduced results in the segment’s global poultry business.
Earnings in animal nutrition lagged the prior year due to varying combinations of higher input costs, lower sales volumes and pricing pressures in different countries. This was partially offset by gains in Latin America for micronutrients, premixes and feed additives.
Read the full report here.
