Cargill Inc. posted a solid fourth quarter to complete a comeback year, with most of its myriad businesses turning in bigger profits.
Even the company's hard-pressed North American beef business showed some improvement in the fourth quarter, though it's still struggling along with the rest of the beef industry.
Cargill on Wednesday reported net profits of $483 million for the quarter ended May 31, up from $73 million a year ago, its worst quarterly showing since 2001. In fact, the Minnetonka-based agribusiness giant's entire 2012 fiscal year was one of its worst in a decade, as the firm was pummeled by weak trading results and reduced profits in key businesses.
But for fiscal year 2013, Cargill said it earned $2.31 billion, up from $1.17 billion in fiscal 2012. Sales totaled $136.7 billion, up 2 percent from fiscal 2012. Revenue in the fourth quarter was $35.4 billion, up 4 percent from a year ago.
"Based on how the year unfolded, we felt it would be a favorable rebound, and they more or less delivered on that," said Chris Johnson, a debt analyst at Standard & Poor's.
Although Cargill has some publicly traded debt, it is one of the world's largest privately held companies, active in everything from the egg business to palm oil plantations to road salt production.
This year, nearly all of Cargill's business units were profitable, and two-thirds of them exceeded 2012's results.
"It was a good year, and we are pleased with the breadth of our performance," David MacLennan, Cargill's chief operating officer, said in an interview with the Star Tribune. "It's widely based and not concentrated in one or two areas."