Lisa Clemens, (952) 742-6405
Cargill Reports Fiscal 2002 Earnings
Minneapolis — Cargill today reported net earnings of $827 million for the 2002 fiscal year, an increase of 131 percent from $358 million in fiscal 2001. Earnings in the fourth quarter, which ended May 31, were $144 million, compared with an $87 million loss in the final period a year ago.
Revenues for the full fiscal year rose by 3 percent to $50.8 billion. Cash flow from operations increased 37 percent to $2.3 billion.
“Cargill’s earnings improvement was broad based, with two-thirds of our 90 business units delivering stronger results than a year ago,” said Warren Staley, chairman and chief executive officer. “Contributors included the majority of our food and meat businesses in Europe and North America – ingredients such as sweeteners, edible oils, malt and cocoa, as well as egg, pork and poultry products. Our animal nutrition business, which smoothly integrated last year’s purchase of Agribrands International, expanded significantly. Cargill’s global network for processing and distributing oilseeds, grain, sugar, cotton and other commodities also performed well. Additional earnings strength came from our financial businesses.”
Results in beef processing were solid, but below last year’s level due to weaker demand at home and abroad. “By optimizing the use of raw materials and production capabilities to meet customer expectations, our beef team kept the business on course,” said Staley.
The impact of Argentina’s economic crisis on Cargill’s business activities there was mixed. The company’s flour milling business, which serves the local market, was hard hit; agricultural exports steadied, and reserves were taken to cover the uncertainty following the country’s debt default in December and the currency devaluation that began in January.
Cargill’s purchase of Cerestar, Europe’s premier maker of specialty starches and sweeteners, was completed in the fourth quarter and the integration of the two companies is under way. “This was a milestone for Cargill,” said Staley. “Cerestar brings us a new level of R&D skills, high-value products and customer partnerships. Those capabilities are well matched by our larger U.S. presence and strengths in operations and supply chain management.” Cerestar starches and starch derivatives are used in food and beverages, paper and packaging, pharmaceuticals, detergents and fermentation feedstocks.
Staley credited the year’s progress to the power of an engaged team.
“Three years ago, we set out to make Cargill more customer focused. That change in mindset challenged us to grow as a trusted, creative and enterprising partner to our customers. It even led to our new vision: to be the global leader in nourishing people. After three demanding years, all of us – and the Cargill team is now 97,000 strong – are invigorated to begin the new fiscal year with renewed momentum for growth.”
Cargill, Incorporated is an international marketer, processor and distributor of agricultural, food, financial and industrial products and services with 97,000 employees in 59 countries. The company provides distinctive customer solutions in supply chain management, food applications, and health and nutrition.