Lisa Clemens, 952-742-6405
Cargill Reports Second-quarter 2003 Earnings
MINNEAPOLIS – Cargill today reported $319 million in earnings from continuing operations for the 2003 second quarter ended Nov. 30, up 25 percent from $256 million in the same period a year ago. Additional earnings of $2 million were realized from nonrecurring items. Including the one-time items, Cargill earned $321 million in the second quarter.
Earnings from continuing operations for the first six months of fiscal 2003 were $664 million, an increase of 25 percent from $533 million in the prior year’s first half. Additional earnings of $256 million realized from nonrecurring items brought the company’s net income for the first half to $920 million.
“Cargill delivered solid operating earnings in the second quarter, an outgrowth of our multiyear strategy to focus on customers, innovation and performance,” said Warren Staley, chairman and chief executive officer. “Today, we are doing more, especially with respect to new products, supply chain management and risk management services, to help our food and agricultural customers to succeed. We’ve improved our ability to acquire companies with good strategic fit and integrate them into our operations. Our team has done an excellent job managing risk in weak economies and in more volatile commodity markets. And we’ve continued to increase efficiency and hold expenses in check.”
Staley said all of these actions, taken over the past few years, strengthened Cargill’s sales and profitability, and brought greater consistency to its operating performance in the first half.
The majority of Cargill’s food ingredient businesses around the world delivered better results than a year ago, including many of its units operating under still challenging conditions in Argentina, Brazil, Venezuela and Ivory Coast. The company’s global grain, oilseeds, sugar and cotton network performed well, as did its animal nutrition and beef processing businesses.
Cargill’s financial businesses posted a steady first half. And in the industrial segment, its phosphate fertilizer and steel businesses both benefited as those industries began to recover from cyclic lows.
Cargill completed several acquisitions in the second quarter that advance its strategy to be a premier provider of customer solutions in food and agriculture. “We were pleased to welcome the addition of Peter’s Chocolate, a leading supplier of premium chocolates to the retail confectionery industry in North America,” said Staley. “We are retaining the historic Peter’s brand, known for superior flavors, colors and textures, and are combining its production with our Wilbur Chocolate subsidiary based in Lititz, Pa.”
Also in the second quarter, Cargill purchased leading Swiss animal nutrition company Provimi Kliba, and Farmland Hydro, a Florida-based phosphate fertilizer producer. In a joint venture with Australian grain handler GrainCorp, it purchased the flour mixing and milling business of Goodman Fielder, now named Allied Mills.
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.