MINNEAPOLIS — Several global product lines of food ingredients experienced softer results for Cargill in the second quarter of the fiscal year, but earnings companywide increased.
Adjusted operating earnings of $1.02 billion were up 19% from $853 million in the previous year’s second quarter, the Minneapolis-based company said when reporting results Jan. 7. Net earnings of $1.19 billion were up 61% from the previous year’s second quarter. Second-quarter revenues increased 4% to $29.2 billion, and six-month revenues increased 3% to $58.2 billion.
“Our ongoing transformation, as well as recent acquisitions and expanded capabilities, are all helping us continue to raise our performance,” said David W. MacLennan, chairman and chief executive officer of Cargill.
Among Cargill’s four business segments, adjusted operating earnings increased in Animal Nutrition & Protein and Industrial & Financial Services and declined in Origination & Processing and Food Ingredients & Applications.
Softer results in food ingredients included starches and sweeteners in Europe and Brazil and edible oils in South America. Cocoa and chocolate results were nearly even with results in the previous year’s second quarter.
In Origination & Processing, trade uncertainty and weather disruptions, particularly in North America, impacted results negatively.
Cargill said its protein businesses around the world met opportunities from country-by-country changes in demand, shifts in global protein flows due to African swine fever and other market forces. Transformation efforts, recent acquisitions and capital investments positively impacted businesses like animal nutrition and global poultry.