Cargill net income reaches $3.48 billion for first three quarters of FY2011
Up 47% from 2010 numbers
Cargill's nine-month net income for the 2011 fiscal year has reached $3.48 billion, compared with $1.91 billion in fiscal year 2010, according to the company's latest report. This number includes $1.19 billion in earnings from discontinued operations; earnings from continuing operations were $2.29 billion, a 47% increase from 2010.
For the third quarter alone, which ended Feb. 28, Cargill reported $763 million in earnings from continuing operations, up 30% from $588 million in the same period of 2010. The company recorded $342 million attributable to its majority investment in The Mosaic Company — income now classified as earnings from discontinued operations following the two companies' Jan. 18, announced agreement and upcoming closing of a split-off and distribution of Cargill's 64% ownership stake in Mosaic. Earnings from discontinued operations in the 2010 period were $310 million, of which $141 million was attributable to Mosaic. Cargill's third-quarter net earnings totaled $1.11 billion, up 23% from $898 million in the prior year.
Four of Cargill's five business segments increased earnings in the third quarter, according to the company. Results were led by the origination and processing segment. Food ingredients and applications increased earnings moderately, and results in the risk management and financial segment improved from 2010. Although earnings were down slightly, the agriculture services segment benefited from farm customers' demand for grain marketing and price risk management services.