Linda Thrane , Cargill (952) 742-6218
Cargill reports $587 million in earnings for 1998-99 first half
MINNEAPOLIS -- Cargill today reported $587 million in earnings for the first half ended Nov. 30, made up of a onetime, after-tax gain from the sale of the company's international seed business to Monsanto and a net operating loss largely from financial trading losses in Russia and emerging markets.
"Several of our commodity trading and food processing businesses performed well in the first six months of fiscal 1999," said Cargill Vice Chairman Robert Lumpkins. "Some, however, were hurt by the prolonged economic slowdown in Asia and other emerging markets that weakened demand for agricultural products just as back-to-back big harvests boosted supplies." Cargill's financial business was hard hit by the Russian debt default last August, which negatively affected world financial markets. The company has reduced the size and scope of its financial operations to align them better with current opportunities.
Lumpkins said Cargill's balance sheet and cash flow remain strong, and the company is moving ahead with several initiatives such as the agreement announced in November to acquire the global grain business of Continental Grain Co. "Grain markets and, in fact, the global food system are being reshaped by population growth, urbanization, trade and technology," he said. "Cargill is committed to offering a wider range of products and services to farm and food customers in that dynamic marketplace. That's what our agreement with Continental Grain is all about."
Cargill is an international marketer, processor and distributor of agricultural, food, financial and industrial products with some 80,600 employees in more than 1,000 locations in 65 countries and with business activities in 130 more.