Cargill Reports $195 Million Q4 Net

NEW YORK - Aug 10/04 - SNS -- Cargill Inc. reported net earnings of $195 million for the fourth quarter ended May 31, up 38% from $141 million in the same period a year ago.

For the 2004 fiscal year, earnings from continuing operations were a record $1.28 billion, an increase of 24% from $1.03 billion a year ago. Additional income from discontinued operations brought Cargill’s net earnings to $1.33 billion for the full year. Last year’s net earnings of $1.29 billion included $256 million from discontinued operations and a required change in goodwill accounting.

Revenues for the full year rose 16% to $62.9 billion. Cash flow from continuing operations increased 18% to $3 billion.

The company’s meat businesses strengthened in the fourth quarter after being hurt by the trade disruption caused by the discovery of a single case of BSE in the United States and the outbreak of avian influenza in Asia.

Improving demand for fertilizer bolstered performance in phosphate production in the fourth quarter.

One of the year’s major focuses was driving business growth, both organically and through acquisitions and alliances. In January, Cargill and IMC Global announced an agreement to combine their crop nutrition businesses into a new, publicly traded company. Named The Mosaic Company, it is expected to benefit from a stronger global presence and product mix, improved financial flexibility and cost-saving opportunities. Pending various approvals, Cargill anticipates completion in the third quarter of calendar 2004.

During the past year, Cargill increased its food ingredient capabilities by acquiring OCG Cacao, a leading European maker of industrial chocolate, and UK-based The Duckworth Group, which creates flavor systems for food and beverage makers. It also introduced a number of ingredients and ingredient systems that food manufacturers can use to add taste, convenience and health-promoting benefits to new food and beverage applications.

In animal nutrition, Cargill expanded its dairy offerings by acquiring the Agridea feed brand in Italy, the New York- and Pennsylvania-based assets of Agway Feed & Nutrition and two West Coast dairy feed firms. It also purchased the assets of a Louisiana-based firm specializing in aquaculture feeds.

The company improved its origination capabilities in Eastern Europe and Latin America, and added oilseed processing facilities in China and India.