April 16, 2001

Contact:

Cargill earns $99 million in 2000-01 third quarter

MINNEAPOLIS -- Cargill today reported $99 million in earnings for the third quarter ended Feb. 28, down 48 percent from the year-ago level. Earnings for the first nine months of fiscal 2001 totaled $445 million, an 8 percent decrease from last year.

"Continued weak economic conditions in many of Cargill's markets slowed the steady earnings pace set during the first half," said Chairman and Chief Executive Officer Warren Staley. "However, the company's beef processing and financial businesses generated solid earnings, and despite the weakness in agricultural commodity markets, our grain and oilseeds businesses also delivered good results."

Staley said increases in energy costs hurt the company's energy-intensive processing businesses. That came on top of excess capacity across the industry, and successive years of big supplies against weak global demand -- conditions that depressed margins in a number of key Cargill businesses, including fertilizer, juice, flour milling and steel.

"Times are challenging, but we're staying focused on Cargill's fundamental strength: to deliver distinctive products and services that help our customers succeed locally and globally," said Staley. He noted that Sun Valley Thailand, Cargill's poultry processing unit in Saraburi, Thailand, recently received the Sweeney Quality Award for 2000 from global customer McDonald's. Sun Valley was the only recipient worldwide of this prestigious biennial award for supplier excellence. 1998's recipient also was a Cargill subsidiary, egg further processor Sunny Fresh Foods. "We're backing our customer-solutions commitment with investments in innovation and technology, and that pledge is producing performance benefits for our customers and for Cargill."