Minneapolis-Cargill, which owns a two-thirds take in The Mosaic Co., reported net earnings of $489 million in the fiscal 2010 second quarter ended Nov. 30, 2009, down 59 percent from $1.19 billion in the same period a year ago. The company earned $1.01 billion in the first six months, a 62 percent decrease from last year’s record first half of $2.68 billion. Excluding earnings from its majority investment in Mosaic, Cargill’s results were more moderately below the year-ago level in both periods. “Cargill’s business and geographic diversity continued to demonstrate its value, as a different mix of business units moved to the forefront in the second quarter,” said Greg Page, Cargill chairman and CEO. “Performance was led by our food ingredients and agriculture services segments, both of which were up significantly from last year. With the global financial sector in recovery, we also realized much improved results in our risk management and financial segment.” Page noted Cargill’s first-half earnings were considerably better than the last six months of fiscal 2009. “Through November, Cargill’s earnings were up by more than 50 percent from the preceding six months. The pickup in performance reflects our continued focus on holding down costs, tapping both developed and faster-growing emerging markets, and reinvesting our capital in the future growth of the company and our customers. They, too, are working their way through the challenges of this economy.” Earnings in the origination and processing segment declined from the record level realized in last year’s exceptionally volatile commodity markets. The industrial segment was down due to the sharp decline in earnings derived from Cargill’s investment in Mosaic (GM Jan. 11, p. 1).
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