Cargill Inc. said Thursday that revenue fell 11% in the February
quarter because of slowing growth in the food market and the impact
of the stronger dollar.
However, earnings for the agricultural conglomerate grew 33% for
the fiscal third quarter, helped in part by strength in the meat
segment.
Cargill Chief Executive David MacLennan added the company saw a
rebound in its energy business because of strategic changes the
year before.
Cargill, which had $134.9 billion in sales in the last fiscal
year, has struggled to navigate volatile energy and currency
markets, as well as slow crop sales among farmers dissatisfied with
lower grain prices. The suburban Minneapolis company--among the
world's largest closely held companies--said earnings rose 33% to
$425 million even as revenue slipped to $28.4 billion.
Cargill doesn't disclose financial performance of its various
business units.
Earnings for its animal feed and meat businesses improved,
mostly because of growth in Australian beef processing, Central
American poultry and U.S. pork and turkey processing.
But the food ingredients segment was hurt by currency headwinds
as well as extra processing capacity in developing markets. In the
processing segment, strong performance in North America, as well as
a weak quarter the year before, helped earnings rise.
Cargill's earnings fell in its financial services segment
because of decreased results in asset management.
Write to Angela Chen at angela.chen@dowjones.com
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