Cargill earns $172 million in 2000-01 first quarter
MINNEAPOLIS – Cargill today reported $172 million in earnings for the first quarter ended Aug. 31, up 15 percent from $150 million earned in the same period a year ago.
"We're pleased with the pickup in our first quarter earnings," said Chairman and Chief Executive Officer Warren Staley. "We opened the 2001 fiscal year with our best start in four years." Staley said results were led by Cargill's beef processing and financial businesses. Good supplies of cattle coupled with strong domestic and export demand boosted results in beef processing. In the capital markets, the company's earnings growth reflected a balanced mix of financial trading and investing activities. Agile trading and risk management in the global petroleum and sugar markets also contributed to the earnings improvement.
Despite signs of slowly recovering demand, the global grain and oilseeds markets remained under a supply overhang that continued to dampen earnings in those businesses.
Staley said that reinvigorated demand is key to a healthier agricultural sector. "The U.S. Senate's passage of legislation granting permanent normal trading relations to China, which was signed by the president last week, heightens prospects for China's entry into the World Trade Organization. That's a significant step in the right direction," he said.
"We're also pleased with the progress made in our e-commerce and research initiatives," Staley added. Cargill has helped launch seven independent online markets - beginning in March with Rooster.comSM for farmers and most recently, eFS Network for food service companies. Cargill also has boosted research and development expenditures significantly this fiscal year. "As Cargill enters its third century of business, we're gearing up to better serve customers with distinctive, value-adding solutions to their needs," he said.
Cargill is an international marketer, processor and distributor of agricultural, food, financial and industrial products and services with 85,000 employees in 60 countries. The company provides distinctive customer solutions in supply chain management, food applications and health and nutrition.