Jan. 16, 2001

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Cargill earns $174 million in 2000-01 second quarter

MINNEAPOLIS – Cargill today reported $174 million in earnings for the second quarter ended Nov. 30, up 20 percent from $145 million earned in the same period a year ago. That brought earnings for the first six months of fiscal 2001 to $346 million, a 17 percent increase from last year's first half.

"We're pleased with this quarter's performance," said Chairman and Chief Executive Officer Warren Staley. "Cargill people around the world are making steady progress in offering distinctive food, agricultural and risk management solutions that add to our customers' success."

Staley said second-quarter results continued to be led by Cargill's beef processing business, which benefited from brisk consumer demand and adequate cattle supplies, and by its financial businesses, which delivered a balanced performance across geographies. Actions taken to streamline operations, along with modest improvements in demand in several regions, also yielded improved results in Cargill's global grain and oilseeds businesses. Staley noted that Cargill's steel and phosphate fertilizer businesses were affected by difficult market conditions worldwide.

"We continue to develop innovations and alliances that better serve our customers," said Staley. "Cargill AgHorizons™ brought a number of new grain marketing and risk management tools to farmers' doorsteps." He also highlighted the company's December acquisition agreement with Agribrands International, the maker and marketer outside the United States of Purina®, Chow® and other quality animal nutrition products. "As people's incomes rise over time in much of the world, they eat more animal-based proteins. Animal Nutrition and Agribrands will work with livestock producers in Asia and elsewhere to meet that growing demand." The Agribrands purchase is expected to close in April, pending regulatory approvals.