Drought hurts Cargill as 3Q profits drop 42%


Cargill Inc. reported net earnings of $445 million in its fiscal third-quarter, down 42 percent from a record $766 million in the same period a year ago, Bloomberg reports. Revenue for the quarter that ended Feb. 28 edged up 1 percent at $32.2 billion.

The Wall Street Journal says the Twin Cities-based agribusinesses giant blamed last year's drought for higher costs on its meat and farm service businesses.

“In North America, our meat processing businesses were pressured by the drought-related high cost of feed ingredients,” Chairman and Chief Executive Officer Greg Page said in the news release. "Even though many of our global food ingredients businesses experienced higher input costs, they nearly matched their strong performance in last year’s third quarter.”

Next Up


Cargill profits drop 88 percent

The food giant's second-quarter profits are down 88 percent from a year ago even as sales increased 17 percent. The company's CEO pegged the disappointing results on its weak meat business and a poor sugar market, as well as political uncertainties.

Land O'Lakes profits rebound in 3Q

Land O'Lakes Inc. posted net income of $18 million in the third-quarter, compared to a $30 million loss a year earlier, the Star Tribune reports. The Arden Hills-based co-op also reported a seven percent increase in sales.

Polaris profits surge 40 percent in 3Q

Boosted by double-digit sales growth across all of its product lines, Polaris Industries Inc. posted a net income of $94.3 million, a 40 percent jump from $67.6 million in the third quarter a year-ago, the Associated Press reports. The Medina-based all-terrain vehicles maker also lifted its full-year outlook for the third time.

New owner of Minnesota refinery reports record 3Q profits

Connecticut-based Northern Tier Energy, the new owner of the St. Paul Park refinery, reported quarterly operating income of $199.4 million, up $33.7 million from the quarter a year ago, according to a company news release. Northern Tier credits record productivity at the St. Paul Park refinery and favorable crude oil prices for the boost in profits.