IN BRIEF - Cargill profits slip to near 10-year low
(UNITED STATES, 8/10/2012)
Cargill earned USD 1.17bn in the 12 months ended 31 May, the smallest net profit since 2003 and 56 per cent lower than the record USD 2.69bn reported in 2011. Fourth-quarter profit was USD 73m, down 82 per cent from the same period last year and the least since 1991.
Cargill encountered problems in both specialised businesses and global markets. As surging cattle markets outpaced wholesale meat prices, profit margins were squeezed at Cargill’s US slaughterhouses. Hedge funds managed by the company dragged down its financial division, while a warm US winter slowed sales of highway salt.
The company has entered its new fiscal year as corn and soyabean prices have surged to records on fears that the worst US drought in half a century will dramatically reduce crops. Cargill will be exposed to...