World Grain - September 2014 - 17

newsreview
Cargill earnings fall despite improved beef business
MINNEAPOLIS, MINNESOTA, U.S. - Weak economic conditions
in some countries, exchange rates in Venezuela and the rejection of
corn shipments in China all affected Cargill negatively in the fiscal
year ended May 31. Fiscal-year earnings of $1.87 billion marked a
19% decrease from $2.31 billion in the previous fiscal year. Fiscalyear revenues dipped 1% to $134.9 billion.
"Though we look back on a year in which overall earnings fell
short of expectations, we realized stronger operating results in several businesses, including a turnaround in our global beef operations," said David MacLennan, president and chief executive officer
of Minneapolis, Minnesota, U.S.-based Cargill, when results were
given Aug. 7.
China rejecting certain U.S. corn shipments, which Cargill reported in the third quarter, led to decreased earnings in Origination &
Processing. Poor performance in energy led to declining results in
Industrial & Financial Services. Within that segment, earnings rose
in global transportation and a U.S.-based steelmaking joint venture.
The beef business led performance in animal protein, helping earnings rise in Animal Nutrition & Protein, one of Cargill's four segments.
Within that segment, U.S. pork operations rose on improved life production and processing efficiency and steady demand. Poultry operations in Central America, Europe and Thailand posted higher earnings.

Earnings in the Food Ingredients & Applications unit decreased after four straight years of record performance. The drop in earnings reflected weaker economic conditions in some countries and a negative
impact of the change in Venezuela's effective currency exchange rates.
In the fourth quarter ended May 31, Cargill's net earnings of $424
million marked a 12% decrease from $483 million in the previous
year's fourth quarter. Fourth-quarter revenues rose 2% to $36.2 billion.
Cargill has $3.3 billion worth of food and agricultural facilities
under construction in 13 countries, MacLennan said.
"As these facilities come on-line, they enhance Cargill's delivery
of value-creating solutions to our food, agricultural and other customers," he said.
Selective changes were made to Cargill's portfolio, including this
year's successful formation of Ardent Mills, a flour milling joint
venture. In its food segment, the company sold a highly specialized
texturizing compounds business.
MacLennan noted that Cargill will celebrate its 150th year in business in 2015. "Our company has a long history of doing business ethically and safely, nurturing top talent, managing risk, learning from
setbacks and breaking new ground. It makes us optimistic about our
ability to excel, to help customers thrive and to be the global leader
in nourishing people."

EBRD to help Ukraine's Nibulon with harvest
LONDON, ENGLAND - The European Bank for Reconstruction
and Development (EBRD) has organized a new syndicated facility
worth $130 million for Nibulon, Ukraine's leading grain trader for
the ongoing crop harvesting and marketing season.
The facility will replace the syndicated loan of $125 million signed
in 2012, which expired in June.
The new facility will consist of an A loan of up to $30 million for the
EBRD's own account and a B loan of up to $100 million, which will be
syndicated to commercial banks. Several banks, including ING and ABN

Amro, have already committed their participation, which demonstrates
growing confidence of international financiers in Ukraine's agribusiness.
The transaction will help the bank's long-standing client Nibulon
address working capital needs associated with crop origination, primary processing, transport and storage in the current environment of
reduced availability of external funding in Ukraine.
The EBRD is the largest financial investor in Ukraine. As of the
end of July, the bank had committed $12.3 billion through 329 projects in the country.

For more information, see Page 126.

www.World-Grain.com / World Grain / September 2014

http://www.denis.fr http://www.World-Grain.com

World Grain - September 2014

Table of Contents for the Digital Edition of World Grain - September 2014