Cargill Earnings Drop 65 Percent In Fiscal 1Q

MINNEAPOLIS (AP) — Agribusiness conglomerate Cargill Inc. said Tuesday its fiscal first-quarter earnings plunged 65 percent, hurt by slumping fertilizer sales.

Net income for the three months ended Aug. 31 sank to $525 million from a record $1.49 billion in the year-earlier period. That included "a sizable decline" from Cargill's majority investment in Mosaic Co., a publicly traded fertilizer maker.

Cargill is a privately-held company with arms in virtually every aspect of agriculture, from commodities trading to crop exporting and fertilizer production. It has struggled since crop prices plummeted with the global economy late last year.

Cargill gives only a broad overview of its financial performance, and doesn't break down profits and losses by segment. It said its business unit earnings were broad-based and up considerably from the final two quarters of fiscal 2009.

Earnings in Cargill's agriculture services and food ingredients and applications business rose from last year's first quarter, partly due to lower raw material costs, reduced operating costs and product mix changes, the company said.

Risk management and financial results rose significantly, reflecting a return to profitability by its financial investment subsidiaries and good results from its energy businesses, Cargill said. Origination and processing earnings were solid, though down from record results a year earlier.