August 15, 2014
Cargill: Fiscal 2014 earnings down 19% on-year
For the full fiscal year Cargill earned US$1.87 billion, falling 19% from US$2.31 billion in the previous year.
Revenues dipped 1% to US$134.9 billion. Cash flow from operations totalled US$3.77 billion, down 12% from US$4.27 billion in fiscal 2013. Net earnings of US$424 million was reported in the fiscal 2014 fourth quarter ended May 31, down 12% from US$483 million on-year. Fourth-quarter revenues rose 2% to US$36.2 billion.
"Though we look back on a year in which overall earnings fell short of expectations, we realised stronger operating results in several businesses including a turnaround in our global beef operations. We also made good progress on moves designed to sharpen efficiency and support profitable growth in fiscal 2015 and beyond," said David MacLennan, Cargill''s president and chief executive officer.
Among Cargill''s four segments, earnings rose appreciably in Animal Nutrition & Protein in the fourth quarter and full year. Results in animal nutrition were up for the full year, reflecting the positive impact of recent years'' acquisitions and a product and service mix that met the diverse needs of customers. Fourth-quarter earnings were below the year-ago level due to a loss resulting from adjustments to the balance sheet to account for Venezuela''s effective currency exchange rates.
Performance in animal protein was led by the beef business, which was boosted by increased operating efficiency, good cattle feeding results in North America and brisk exports of Australian beef. US pork operations rose on improved live production and processing efficiency, and steady demand. Poultry operations in Central America, Europe and Thailand posted higher earnings in both periods on a combined basis.
Origination & Processing results were slightly below last year''s fourth quarter. Full-year earnings decreased moderately from fiscal 2013, reflecting in part the impact of China''s rejection of certain US corn shipments, as reported in the third quarter. Fourth-quarter performance was led by supply chains in South America; full-year results were led by supply chains in Brazil, Europe and North America. US farm services continued to experience limited handling and storage opportunities arising from the last year''s drought and higher costs related to railcar shortages.