Minneapolis, MN - Agricultural powerhouse Cargill Inc., the nation's largest privately held company, said its fiscal 1998 earnings fell 43%, eroded in part by a drop in Asian demand and El Nino-related problems.
Cargill earned $468 million on sales of $51 billion in its fiscal year ended May 31, down from last year's earnings of $814 million on sales of $56 billion. Fourth-quarter earnings were $219 million, compared with $156 million a year ago.
"Our warnings a year ago that 1997-98 would be extraordinarily difficult proved true," said Robert Lumpkins, Cargill vice chairman and chief financial officer.
Lumpkins cited global excess capacity in grain handling and processing, a drop-off in Asian demand due to economic turmoil there, greater market unpredictability caused by the El Nino weather phenomenon and losses in Cargill's consumer finance businesses, which the company has exited.
Lumpkins said Cargill invested $1.4 billion in the past year. It acquired oilseeds processing facilities in South America and Europe, built feed mills in Poland and China and developed case- ready meats, among other things.
"Our investments leave us well positioned to serve a growing global appetite for more and better food, for our industrial products and for our financial services," Lumpkins said. "No question, a fast-changing world will serve up new challenges in the year ahead. But for a company with staying power like Cargill, the opportunities are many."
Cargill is an international marketer, processor and distributor of agricultural, food, financial and industrial products with 80,600 employees in more than 1,000 locations in 65 countries and business activities in 130 more.
Meat Industry Insights News Service
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