Cargill says economic outlook ‘uncertain’; reports FY earnings drop
“A recovery emerged and, in some countries such as Brazil and China, accelerated.
Yet any number of regional stresses exposed a deep unease about the underlying health of the world economy,” the company said in its annual report.
“Even today, more than a year out from the financial crisis and global economic contraction of 2008 and 2009, the outlook for economic growth is uncertain.”
Cargill reported full-year revenues of $107.9bn, down from $115.1 billion a year ago. However, revenues were up in the fourth quarter to $28.1 billion, an 11 percent increase from $25.4 billion in the year-ago period.
Cargill chairman and CEO Greg Page said in a statement: "We are pleased with the strength and breadth of Cargill's performance. Fifty-six percent of the company's business units delivered increased earnings for the full year, including 20 percent at record levels. The diversity in our business allowed us to deal effectively with the uncertainty in the global economy. We utilized strengths and expertise across Cargill to create solutions for our customers."
But Cargill has emphasized that it is continuing to invest, particularly in emerging markets, where economic recovery has been more rapid.
Page said: "Over the past year, we opened 17 new and expanded facilities of significant scale, including joint ventures. Fifteen more major projects are under way. This represents a global, multiyear investment of more than $1.1 billion."
Cargill reported net earnings of $691m in the fourth quarter ended May 31, compared with $327m for the same period a year earlier.
As a private company, Cargill does not publish its full financial results, nor give a breakdown of performance across divisions. However, it said it has benefitted from lower raw material costs, and increased demand for its value-added products and services.
Fourth quarter and full-year results for its Agriculture Services sector were up “significantly”, due to a late, large North American harvest, the company said.
