Cargill Reports Worst Quarter in a Decade [August 9, 2012]

Aug 09, 2012

Cargill Profits Below Expectations

Cargill, one of the leading international agricultural companies reports Q2 profits fell below expectations. Their March-to-May 2012 period experienced its worse showing in a decade. The news also hits with a drop in full-year profit expectations.

Cargill’s Chief Executive, Greg Page noted that the full-year decline is reflective of the one of the company’s strengths – trading.

"We did not trade as well in this year's markets," a factor reflecting their vulnerability to changes in political factors, such as twists in the eurozone debt crisis, which were difficult to predict rather than crop fundamentals,” says Page.

The news isn’t all doom and gloom for Cargill, demonstrating improved results its food ingredients division which was boosted by starches, specialty oils and cocoa.

"We are confident about Cargill's ability to grow profitably, to help our customers to do the same, and to help build a more food-secure world," says Page.

Cargill has also been weighing into the politics of U.S. ethanol policy, calling for a holdback on corn used for ethanol production in order to free up some corn for livestock producers who are dealing with high input costs with rising feed prices and an overall short supply of feed. The company among other things is a meat processor and is finding itself pinched by high cattle prices and a decreased supply and demand.

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