Strong results across a range of business units helped US agribusiness Cargill post a stable set of figures for the fourth-quarter of 2003. Food ingredients operations in Europe, Latin America and North America claim a particularly strong performance.
Net earnings rose by 3 per cent to $141 million for the fourth quarter ended May 31, up from $137 million in the same period a year ago.
For the 2003 fiscal year, earnings from operations were $1.036 billion, an increase of 21 per cent from $855 million a year ago.
But these results also reflect proceeds from litigation settlements and the fact that the company realised $254 million from two items - discontinued operations, including the sale of North Star Steel's tubular steel division, and the adoption of new rules for goodwill accounting. These brought Cargill's net earnings to $1.29 billion for the full year, compared with $798 million a year ago.
Revenues for the full year rose 19 per cent to $59.9 billion. Cash flow from continuing and discontinued operations increased 26 per cent to $2.9 billion.
"Cargill delivered a strong performance in a year marked by regional turbulence and slow economic growth," said Warren Staley, chairman and chief executive officer of Cargill. Staley attributed the growth to four key factors - better customer service, improved ability to integrate newly acquired businesses, strong risk management in 'challenging environments' and finally, an eye on 'controlling costs and increasing efficiency.'
Staley added that the improvement in Cargill's operating earnings was broad based, with a majority of business units delivering stronger results than a year ago. Especially improved was the overall contribution from the food ingredient businesses in Europe, Latin America and North America. The company's red meat, egg products and animal nutrition businesses were also solid performers.
One of the year's major focuses was the integration of recently purchased French starch and derivatives company Cerestar and a number of Cargill businesses in Europe and North America. "In its first year, the combined enterprise hit its financial targets, and the important work of unifying our work teams, migrating capabilities and sharing knowledge is well under way, " said Staley.
In 2003 Cargill completed several smaller acquisitions including the Peter's Chocolate brand, the Australian flour milling and mixing business of Goodman Fielder, and Provimi Kliba, a Swiss animal nutrition company.