Cargill profit more than doubles on higher beef demand
(Reuters) - Cargill Inc [CARG.UL] reported a quarterly profit on Thursday that more than doubled, boosted by higher demand for beef, even as the global commodities trader wrestled with worries over a trade war between the U.S. and China.
The company said its animal nutrition and protein unit, which includes beef, egg products and animal feed, became the largest contributor to its earnings in the quarter.
Cargill and rivals Archer Daniels Midland Co (ADM.N), Bunge Ltd (BG.N) and Louis Dreyfus Co [AKIRAU.UL], known as the ABCD companies that dominate global grain trading, have cut costs and invested in higher-margin businesses such as protein production, food ingredients to shield themselves from tough conditions in their core grain businesses.
The privately held company’s net income rose to $711 million in the fourth quarter ended May 31, from $347 million a year earlier.
Adjusted operating earnings jumped 76 percent to $809 million in the reported quarter. Revenue rose 7 percent to $30.4 billion.
Reporting by Karan Nagarkatti in Bengaluru