Cargill Inc. last week reported earnings for the quarter ended Nov. 30 fell 88 percent to $100 million compared with the same period a year ago. The results were significantly below the company's expectations and the worst quarterly earnings since the fourth quarter of 2001.
Judi Rosetti, a debt analyst at Fitch Ratings, wrote in an e-mail to the Star Tribune: "The depth of Cargill's earnings decline is concerning. However, Cargill did generate several years of very strong earnings in recent years, so it is important to view Cargill's current earnings struggles from that perspective."
Rosetti added that she's unlikely to downgrade Cargill's debt ratings unless current earnings trends continue "beyond the near term."
TARGET'S MOJO MOVE
The title on J.P. Morgan analyst Christopher Horvers' research report last week was titled "What happened to 'Tarjay'?" The report suggests that Target has lost some of the cheap-chic aura that inspired "Tarjay" nickname. Disappointing holiday sales and an increasing emphasis on groceries has taken off some of the shine.
"A company that has been historically revered in terms of its merchandising capabilities appears to have lost its mojo," Horvers wrote.
In a mojo-fortifying announcement Thursday, Target said it was teaming with boutique shops to offer limited-edition merchandise in its stores and online. The shops will be open in May for a six-week run and then be replaced with another slate of shops in the fall. First up: The Candy Store from San Francisco; Cos Bar from Aspen, Colo.; Privet House from Warren, Conn.; The Webster from Miami Beach, and Boston's Polka Dog Bakery.
PATRICK KENNEDY
