Cargill ‘s earnings slows in 4Q 2019
Due to uncertain global business environment
Cargill reported results for the fiscal 2019 fourth quarter and full year ended May 31, 2019: adjusted operating earnings were $476 million, down 41% from the $809 million earned in last year’s record fourth quarter. This brought Cargill ‘s earnings for the full fiscal year to $2.82 billion, 12% below last year’s top performance.
Cargill ‘s net earnings on a U.S. GAAP basis were $235 million, down 67% from $711 million in the strong comparative period. For the 12 months, Cargill ‘s net earnings decreased 17% to $2.56 billion.
Fourth-quarter and full-year revenues each dipped 1% to $29.9 billion and $113.5 billion, respectively. Cash flow from operations equaled $5.19 billion, also a 1% decline.
“Throughout the year, we faced a very challenging global business environment that slowed earnings. Still, we improved performance in several food and financial businesses and significantly reduced costs companywide”, said Dave MacLennan, Cargill‘s chairman and chief executive officer.
In particular, he pointed to the North American protein business, which led earnings by combining strong demand for beef and eggs with consumer insights that helped customers win in local markets.
MacLennan said the company is focused on what it can best control: moving faster, raising efficiency, and creating innovative solutions for customers. “We want to accelerate growth in market segments where our expertise will help us create more value with our customers. Serving them inspires us to reach higher every day”.
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