Market volatility spurs Cargill profit surge

By Caroline Scott-Thomas

- Last updated on GMT

Related tags: Cargill

Cargill has reported a 68 percent surge in profits for the first quarter of 2011 to August 31, on the back of renewed volatility in global agricultural commodity markets, the company said.

The company reported net earnings of $883m for Q1 2011, compared to $525m for the prior year period. Excluding earnings from its majority investment in the fertilizer and feed firm the Mosaic Company, it earned $693m, up 51 percent from $458m a year ago. Revenues for the quarter were up six percent on Q1 2010, to $27.8bn.

Cargill chairman and CEO Greg Page said in a statement: "Cargill posted a strong start to the new fiscal year. Our results were led by the food ingredients and the commodity trading and processing segments, both of which experienced resurgence in volatility across agricultural commodity markets. The change put Cargill's global breadth, trading and risk management skills more acutely into play as we worked with customers to help them manage their price risk and raw material needs."

The company said that its earnings in food ingredients and applications were up moderately from last year, “due to improved performance on a combined basis among the food ingredient and the animal protein businesses”.​ Meanwhile, earnings from origination and processing “rose significantly”​ as market volatility created trading opportunities, Cargill said.

As a private company, Cargill does not publish its full financial results, nor give a detailed breakdown of performance across divisions.

However, the company said that earnings for its risk management and financial segment were down due to “choppy energy markets that often moved out of step with supply-and-demand fundamentals.”​ And earnings were also down in its agricultural services segment, a situation that the company attributed to seasonality in North American farm services and volume pressure in some animal nutrition markets.

Related news

Show more

Related products

show more

High Protein Snacks: Beyond the Protein Bar

High Protein Snacks: Beyond the Protein Bar

International Dehydrated Foods | 06-Mar-2019 | Technical / White Paper

As snacking becomes more of an ingrained part of the American diet, it will be increasingly important for snacks to deliver nutrition benefits, including...

Xanthan Gum in gluten-free bread

Xanthan Gum in gluten-free bread

Jungbunzlauer | 20-Sep-2018 | Technical / White Paper

Nowadays, gluten-free claims are no longer just attracting the attention of people suffering from coeliac disease. A growing number of health-conscious...

How does the jam get into a berlin doughnut?

How does the jam get into a berlin doughnut?

ViscoTec America Inc. – Dosing & Filling Systems | 22-Aug-2018 | Application Note

Different flavors and fillings make the hearts of those with a sweet tooth beat faster. The large bakeries face the challenge of meeting the high demand....

GLOBAL PREFERENCES: TEXTURANTS PLAY A KEY ROLE.

GLOBAL PREFERENCES: TEXTURANTS PLAY A KEY ROLE.

Tate and Lyle | 16-May-2018 | Technical / White Paper

Texture is a matter of taste, and that’s true on a global scale as well. What appeals to consumers in Italy might turn off those in Indonesia. As formulators,...

Related suppliers

Follow us

Featured Events

View more

Products

View more

Webinars