Cargill Reports Record Earnings

NEW YORK - Oct 12/04 - SNS -- Cargill reported 33% jump in earnings to a record $457 million from continuing operations for the 2005 first quarter ended Aug. 31, up 33% from a year ago.

Additional income from discontinued operations brought Cargill’s net earnings to $495 million, a 43% increase from the prior year.

The company said it is continuing to expand its global operations. Following last January’s announcement, Cargill and IMC Global have advanced the formation of The Mosaic Company, a new, publicly traded company that will combine the two companies’ fertilizer operations worldwide. Regulatory authorities cleared the proposed combination in August. IMC Global will hold a special meeting of its common shareholders on Oct. 20, 2004, at which IMC common shareholders of record will vote on the proposed combination. If approved, the combination is expected to be completed shortly thereafter.

Cargill completed the purchase of two cocoa processing facilities in England and Germany from the Nestlé Group and an agreement to provide cocoa products to a number of Nestlé’s European confectionery businesses. The additions also enable Cargill to serve more closely the cocoa ingredients needs of other food, chocolate and confectionery companies based in Europe.

In the meat sector, Cargill acquired Caravelle Foods, a respected supplier of frozen beef patties to the quick-service restaurant industry in Canada. It also announced plans to purchase a majority share of Seara Alimentos, a leading Brazilian poultry and pork processor, and to make a tender offer for Seara’s remaining shares. Pending regulatory approval, Cargill expects to complete the purchase in February 2005. Caravelle and Seara both complement Cargill’s ability to provide meat customers with high-quality products and services that can be tailored to their individualized needs from multiple locations.