Cargill Profit Drops 43% From Record High
- US crop trader’s annual net income falls 43% to $3.81 billion
- A decline in meat business and higher costs eroded earnings
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Cargill Inc.’s annual profit nearly halved in its latest fiscal year amid rising costs, a declining meat business and lower agricultural prices from a fading commodities boom.
The largest privately held US company reported net income of $3.81 billion for the year ended May 31, down from a record $6.69 billion in the prior period, according to documents seen by Bloomberg Opinion columnist Javier Blas. Profit was affected by a decline in Cargill’s beef business, hurt by the tightest US cattle supplies since 2014, and a chicken glut that eroded earnings. Even with the 43% profit drop, it was still the fourth-best year for the crop trader.