(Adds business segment details, background)
By Karl Plume
Jan 10 Global commodities trader Cargill Inc
on Tuesday reported a sharply higher adjusted
quarterly profit led by strong results from its beef and turkey
businesses and robust demand for North American grain and
The privately held company said adjusted operating earnings
jumped nearly 80 percent in the second quarter ended Nov. 30 to
$1.03 billion, from $574 million in the same quarter a year
Quarterly net income including one-time items fell to $986
million from $1.39 billion a year earlier, when sales of
Cargill's U.S. pork business and a steel mill bolstered results.
Revenue slipped to $26.9 billion from $27.3 billion in the
same quarter a year ago.
Slumping commodity prices have created headwinds for
agribusinesses like Cargill and rivals Archer Daniels Midland Co
and Bunge Ltd. But input costs have also
declined, allowing the companies to turn profits despite the
All four of Minnesota-based Cargill's business segments
reported higher year-on-year results.
The company's animal nutrition and protein segment was the
largest contributor to profit in the quarter as low grain feed
costs helped boost livestock and poultry production and
processing efficiency efforts lifted margins.
Seasonally strong demand for Thanksgiving holiday turkeys
was met by greater available supplies of birds following tighter
stocks in 2015 due to the U.S. outbreak of bird flu, Cargill
said. Its beef business, meanwhile, gained from higher cattle
supplies and strong consumer demand.
Cargill makes money buying, selling, storing, processing and
exporting grains, benefiting from tight supplies in some markets
and ample supplies in others.
Bumper grain and oilseed crops in the United States and
Canada lifted earnings in Cargill's crop origination and
processing business, more than offsetting a downturn in South
America after adverse weather reduced crops in Brazil and
Food ingredients and applications results rebounded from the
prior year. The company's industrial and financial services
segment recovered from a weak second quarter a year earlier on
stronger energy, metals and transportation trading results.
(Reporting by Karl Plume in Chicago; Editing by Meredith