In this file:
· Cargill reports 6 percent drop in quarterly profit
· Cargill fined $10m for misreporting swaps sales
· Cargill strengthens pet food production and distribution capabilities with Pro-Pet acquisition
Cargill reports 6 percent drop in quarterly profit
Reporting by Karan Nagarkatti in Bengaluru; Editing by Arun Koyyur, Reuters
January 3, 2018
(Reuters) - Global commodities trader Cargill Inc [CARG.UL] on Wednesday reported a 6 percent drop in its quarterly profit, hurt by lower poultry sales and a weak environment for grains.
Cargill and its rivals Archer Daniels Midland Co, Bunge Ltd and Louis Dreyfus Co [LOUDR.UL] - known as the ABCD of global grain trading giants - have been trying to diversify their operations, as a global glut have brought down grain prices.
Cargill announced investments of about $1 billion during the second quarter, including acquisitions, joint ventures and investments in facilities.
The privately held company said net income fell to $924 million...
Cargill fined $10m for misreporting swaps sales
Gregory Meyer, Financial Times
Jan 3, 2018
Cargill, the world’s largest food commodities supplier, reported lower profits in its latest quarter as overflowing crops continued to weigh on its grain trading business.
The family-controlled company’s adjusted operating profit declined 8 per cent year-on-year to $948m in the quarter ended November 30, while net profit fell 6 per cent to $924m. The results suffered in comparison to a strong quarter a year before.
Three of Cargill’s four segments posted higher results. But total profits were dragged lower by its origination and processing segment, where earnings were “down moderately,” the company said.
“Although global demand continues to grow, today’s abundant supplies have weighed on markets, diminishing volatility and trading opportunities,” Cargill said.
Despite the worsening results in the segment, Cargill said performance in North American trading and in Asian oilseed processing was ahead of the same period last year. It noted new work on technologies “that will better connect its global operations, enhance trading analytics and risk management, and increase supply chain sustainability,” as well as investments including construction of a $90m biodiesel plant in Wichita, Kansas, its third such facility in the US.
Cargill’s animal nutrition and protein, food ingredients and applications and industrial and financial services segments all increased profits in the quarter. However, the company’s global poultry business — part of animal nutrition and protein — declined...
Cargill strengthens pet food production and distribution capabilities with Pro-Pet acquisition
via PRNewswire - Jan 2, 2017
MINNEAPOLIS, Jan. 2, 2018 /PRNewswire/ -- Cargill has reached an agreement to acquire Pro-Pet, an Ohio-based manufacturer of private label and co-manufactured pet foods, including premium dog food brand Black Gold®. The acquisition makes Cargill the only national supplier of both animal feed and pet food offerings in the agricultural retail space.
The transaction is expected to close within 30 days, subject to customary approvals. Terms of the deal were not disclosed.
"Pro-Pet's commitment to high-quality, safe pet food and passion for the pet food business is the perfect fit for our Cargill Animal Nutrition business, and allows us to better serve our customers seeking a focused supplier for both animal feed and pet food options," said Pilar Cruz, president, Cargill Feed and Nutrition.
Pro-Pet has more than 150 employees and three pet food manufacturing facilities in Owatonna, Minn.; St. Marys, Ohio; and Kansas City, Kan. Pro-Pet provides Cargill with increased production capacity and proximity to existing agricultural retail customers to better meet their growth needs within pet food.
"Cargill's vast resources and competency in sourcing of commodities, along with their reputation in the agricultural retail business sector, makes Cargill the natural and best partner for Pro-Pet," said Jim Wiegmann, president and CEO of Pro-Pet. "There is no organization that can leverage the strengths and capabilities of Pro-Pet better than Cargill, which will enhance our ability to serve retail partners and pet food brand owners."
Pet food is a top-growing category among agriculture retailers with an estimated eight percent distribution share, in a space that continues to evolve with changing consumer preferences.
"The pet food category continues to change, as indicated by the increased focus on premium offerings," said Mark Lueking, U.S. managing director, Cargill Feed and Nutrition. "Pro-Pet has the capability to satisfy this market need, and our mutual passion for serving customers make us a strong cultural fit. We look forward to growing the business together by delivering a range of options to meet customer demand."
Currently, Cargill operates 50 animal feed production and distribution facilities across the U.S., offering branded and private label pet food to agriculture retailer customers.
Cargill provides food, agriculture, financial and industrial products and services to the world. Together with farmers, customers, governments and communities, we help people thrive by applying our insights and 150 years of experience. We have 155,000 employees in 70 countries who are committed to feeding the world in a responsible way, reducing environmental impact and improving the communities where we live and work. For more information, visit Cargill.com and our News Center.
About Cargill Animal Nutrition
Cargill's animal nutrition business has more than 20,000 employees at more than 275 facilities in 40 countries. Fueled by our innovation and research, we offer a range of products and services to feed manufacturers, animal producers, and feed retailers around the world, helping put food on the plates of nearly one billion people around the world every day. Cargill's animal nutrition business offers a range of compound feed, premixes, feed additives, supply chain and risk management solutions, software tools and animal nutrition expertise that is unmatched in the industry. For more information about Cargill Animal Nutrition, visit: http://cargill.com/animal-nutrition.
Pro-Pet, L.L.C. is a North American pet food company focused on producing premium and super premium branded and private label pet food products with facilities in St. Marys, Ohio; Kansas City, Kansas; and Owatonna, Minnesota. Pro-Pet currently employees more than 150 team members.