CARGILL Inc. has reported an increase in profits of more than 400% for its fiscal 2013 second quarter, crediting "balance and diversity" across the company.
For its quarter ended Nov. 30, 2012, Cargill reported net earnings of $409 million on revenues of $35.2 billion, compared with $100 million and $33.1 billion in its fiscal 2012 second quarter.
For its first half, Cargill reported net income of $1.38 billion, compared with earnings of $336 million the year before. Revenues for the first half were $69 billion.
The company said second-quarter earnings increased in four of its five operating segments, and first-half income rose in all five segments.
Cargill said its agriculture segment benefited from improved operating results in animal nutrition.
The company noted that while feed manufacturing dealt with high prices for corn and other feed ingredients, performance was strengthened from the integration of Provimi, which has brought nutritional expertise, technology and products to the business portfolio since Cargill acquired Provimi in 2011 (Feedstuffs, Nov. 11, 2011).
The agriculture segment also benefited from large grain shipments to Canada, the company said.
Cargill said its origination and processing segment results were a function of "fundamentally driven markets," including an improved environment for oilseed processing in several regions of the world. This segment was the largest contributor to total earnings.
Cargill said its food ingredients segment results were down slightly from the exceptional performance of the year before due mostly to excess capacity in the North American ethanol market.
Animal protein, which is included in the segment, was profitable despite high livestock feeding and raw material costs, compared with what were extremely negative results in beef processing the year before, the company reported.
Cargill said results rose for its industrial segment, although deicing salt production lagged behind normal levels because of the carryover of product from the mild North American winter last season.
The company said its financial and risk management segment turned around from the loss the year before, when markets were stressed by debt turmoil in the U.S. and Europe. By contrast, fiscal 2013 has experienced improved investor sentiment and stronger financial markets, Cargill said.
Chair and chief executive officer Greg Page said the company continues to invest in its operations to better serve customers around the world.
He noted that following two years of investing capital in acquisitions, Cargill is now focused on building new, expanding and modernizing facilities, with a record $2.4 billion of large projects under construction in 13 countries.
Page said these projects are strengthening the company's innovation, risk management and supply chain, "helping us better serve customers' needs and becoming their partner of choice."
Cargill, headquartered in Minneapolis, Minn., is an international producer and marketer of agricultural, food, industrial and financial products that employs 142,000 people in 65 countries. The company reported fiscal 2012 revenues that totaled $133.9 billion.