- Cargill reported its earnings on Wednesday for the first quarter, which ended on August 31, and a 41% drop in quarterly profits took center stage.
- The aftermath of the 2012 drought experienced in the U.S., as well as low corn and soybean inventories contributed to poor results.
Other highlights included:
- $571 million in net earnings for the quarter (down from last year's record of $975 million)
- $33.8 billion in first-quarter revenues (about the same as last year)
- No comment about Cargill's reported move to purchase ADM's cocoa business
Analysts weren't especially surprised by Cargill's announcements. The drought hit U.S. agriculture hard, and companies such as ADM and Bunge have also had disappointing figures to report recently. Healthy corn and soybean harvests are currently underway, however, which could lead to replenished stocks. These companies all have to deal with uncertainty every year. Fortunately for them, better times seem to lie ahead.