Cargill Reports 62% Earnings Jump

MINNEAPOLIS - Jan 13/04 - SNS -- Cargill reported a 62% jump in earnings from continuing operations for the 2004 second quarter ended Nov. 30. They climbed from $316 million in the same period a year ago to $513 million.

Among the contributors to the growth in second-quarter earnings were the global grain, oilseed, cocoa, and starch and sweetener businesses. Beef processing and cattle feeding results were strong, though record-high costs for cattle in tight supply tempered beef earnings late in the period. Several of Cargill's risk management and financial businesses also contributed significantly to the company's results.

Looking forward, the company said the discovery of a single cow infected with BSE crisis in Washington state could hurt third quarter earnings because more than two dozen countries have banned imports of U.S. beef. This includes the first and third largest importers of U.S. beef: Japan which buys around 370,000 metric tons (MT) annually and South Korea, which buys between 90,000 and 144,000 MT of U.S. beef a year.

Cargill said second quarter results included special items of $117 million in the current quarter and $31 million a year ago. Excluding those items, operating results increased by 39%. The company realized an additional $5 million from discontinued operations. That brought Cargill's second-quarter net earnings to $518 million, compared with $314 million a year ago.

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