Cargill’s performance boosted by meat
Total net earnings stood at $425m in the third quarter ended 28 February 2015 - a 33% increase on the comparable period a year ago, however revenues decreased by 11% to $28.4bn.
Animal Nutrition & Protein made up the largest contribution to the firm’s third quarter earnings, published yesterday. According to Cargill, on a combined basis the animal protein businesses were up considerably on Q3 2014. Its Australian beef processing business put in a strong performance, as did Central American poultry and US pork and turkey processing, it said.
“Aided by gains in sales volume, the segment’s animal nutrition businesses jointly increased earnings from the year-ago period,” explained the company.
Developments during the financial quarter in question included the divestment of a feedyard in Lockney, Texas, “a move related to the idling of its Plainview, Texas, beef processing plant in 2013”, and the closure of a turkey slicing and packaging facility in Springfield, Missouri, with production relocated to two other sites.
Cargill also opened its newly expanded animal nutrition innovation centre in the Netherlands, which will allow scientists to work with experts from nearby universities to conduct research that supports the development of new products and services for customers in poultry, swine and dairy.
Also this week Cargill announced it had made progress with Zambeef Products, with regards to the purchase of its soybean crushing and refining subsidiary Zamanita Limited.
Zambeef chairman Dr Dr Jacob Mwanza commented: “The disposal will allow Zambeef to focus on growing its core business, which is the retailing of cold chain meat and dairy products, delivered through the Group’s extensive processing, distribution and retail network. The move will also unlock value by freeing capital and cash flow for investment elsewhere and to reduce gearing.”
