Cargill Inc. swung to a net loss in its fourth quarter as the
agricultural giant grappled with economic doldrums in developing
markets.
The Minneapolis-based company reported a net loss of $51 million
in the quarter ended May 31, compared to a profit of $376 million
for the same period a year ago, a figure that Cargill said Thursday
it had revised due to currency shifts.
"The economic environment remains sluggish in many emerging
markets where we have invested significantly over the past several
years," Cargill's Chief Executive David MacLennan said in a
statement. Revenue for the quarter fell to $28.4 billion from $36.2
billion in the prior-year period.
Cargill is one of the world's largest traders and processors of
crops like corn, soybeans and wheat, as well as a top meatpacker
and supplier of other products ranging from steel to road salt. The
150-year-old company also runs a financial arm and provides
logistics services.
While all four of Cargill's main business segments were
profitable, the loss was mainly driven by charges related to
Venezuela's currency and a new corporate planning system, the
company said Thursday.
Cargill's results come as some of its main agribusiness rivals
have struggled with swinging commodity markets, the rising U.S.
dollar and deteriorating economic conditions in countries like
China and Brazil. Archer Daniels Midland Co. this week reported a
28% decline in profit for its second quarter, following steeper
decreases reported last week by Bunge Ltd. and Green Plains
Inc.
The U.S. dollar's rise against foreign currencies has made some
U.S. agricultural commodities less competitive on world markets,
while economic turbulence in major food markets has crimped some
demand.
Write to Jacob Bunge at jacob.bunge@wsj.com
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