Cargill reports 30% increase in earnings

Cargill has reported $763 million in earnings from continuing operations in the fiscal 2011 third quarter ended February 28, up 30 percent from $588 million in the same period a year ago.

The company recorded $342 million attributable to its majority investment in The Mosaic Company – income now classified as earnings from discontinued operations following the two companies’ January 18, 2011, announced agreement and upcoming closing of a split-off and orderly distribution of Cargill’s 64 percent ownership stake in Mosaic.

Earnings from discontinued operations in the year-ago period were $310 million, of which $141 million was attributable to Mosaic. Cargill’s third-quarter net earnings totaled $1.11 billion, up 23 percent from $898 million in the prior year.

In the first nine months, earnings from continuing operations were $2.29 billion, a 47 percent increase from a year ago. The addition of $1.19 billion in earnings from discontinued operations brought Cargill’s nine-month net income to $3.48 billion compared with $1.91 billion in the year-ago period.

Consolidated revenues excluding Mosaic rose 21 percent to $30.5 billion in the third quarter, bringing the total through the first nine months to $84.7 billion.

“Cargill posted solid earnings in a period of volatile commodity markets and geopolitical change,” said Greg Page, Cargill chairman and chief executive officer. “All of us in agriculture are living with high levels of price volatility, in which small changes in the quantity of production are having dramatic impacts on price. Cargill’s ability to focus on the factors of supply and demand, while gauging external events that can uproot market fundamentals temporarily, is critical to the risk management services we provide to our customers and to our own financial performance.”