CHICAGO, Ill. (Reuters) —Cargill has reported a 13 percent drop in quarterly earnings before special items, citing lower commodity prices and weaker demand in some markets.
A milder-than-normal start to the winter in North America curbed earnings from products such as road salt and pressured prices of natural gas and power, which hurt the privately held company’s energy trading results.
Earnings in the fiscal second quarter ended Nov. 30 were further weighed down by liquidation of hedge funds managed by its Black River Asset Management subsidiary. Cargill is splitting the unit into three separate firms.
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The company’s profit fell to $574 million from $657 million a year earlier, while revenue declined 10 percent to $27.3 billion.
The results excluded gains from the sale of its U.S. pork business in October for $1.45 billion and the $720 million sale of its 50 percent stake in a U.S. steel mill venture as part of a broader restructuring at the 150-year-old company.
Cargill’s animal nutrition and protein segment posted slightly lower results on pressure from cattle and beef businesses in North America and Australia.
Earnings in its origination and processing unit dropped on weak results from cotton, soft seed and sugar businesses.
The food ingredients and applications segment also recorded lower results, pressured by weakening currencies and recessions in countries such as Brazil and Argentina.
