As in recent past quarters, Cargill’s investment in the fertilizer industry through its holdings in The Mosaic Company was a significant contributor to company results. Excluding earnings from that investment, Cargill’s Q2 results were moderately below the year-ago level and, in the first half, just under the same period a year ago.
Among Cargill’s five business segments, results in the second quarter were led by its origination and processing segment, and by its industrial segment, both of which increased earnings significantly from the second quarter a year ago.
Earnings in agriculture services decreased moderately. Results declined overall in the food ingredients and applications segment, with steady or improved performance in some food ingredient and meat units offset by weaker performance elsewhere.
The risk management and financial segment incurred a loss related to financial markets activities. At the same time, the segment’s energy businesses jointly surpassed last year’s second quarter earnings by a significant margin.
Greg Page, Cargill chairman and CEO, said Cargill is preparing for the year ahead by being even more mindful of costs and expenditures, and the risks it chooses to take.
“We don’t expect Cargill to be immune from the economic challenges in this environment,” he said. “But the essential nature of many of our products and services, the diversity of our businesses and our financial discipline, should lend resilience to our operations.
“We’ll keep our resources available to run the sourcing, processing, logistics, transport and risk management activities that support our customers’ supply chains and contribute to the world’s food security. We’ll also continue existing efforts to reduce our company’s energy and water usage, find new and better ways to manage waste, and protect the natural resources so vital to producing food for a still-growing world.”
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