Cargill Falls Short of Expectations
Cargill has reported a 19% decrease in net earnings to $1.87 billion in the fiscal 2014 on revenues down 1% to $134.9 billion. Cash flow from operations at $3.77 billion was down 12% on fiscal 2013.
David MacLennan, president and chief executive of Cargill, comments: “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. We also made good progress on moves designed to sharpen efficiency and support profitable growth in fiscal 2015 and beyond.”
According to David MacLennan, Cargill is making changes to better leverage and connect its operational efficiency, business capabilities and market insights. With respect to processes and technology, this includes accelerating the deployment of enterprise resource planning technology from SAP. Cargill also has begun implementing a multi-year, shared-services approach to providing functional services to business units globally.
David MacLennan, president and chief executive of Cargill.
Selective changes have been made to Cargill’s portfolio, including this year’s successful formation of Ardent Mills, a flour milling joint venture now poised to lead in innovative flour and grain products and services in North America. In its food segment, the company sold a highly specialized texturizing compounds business. In energy, it ceased trading in coal and European power and gas markets.
Cargill continues to invest in acquisitions, and new and expanded facilities that connect markets and support customers’ growth in emerging and developed markets. “Cargill has a record $3.3 billion of major food and agricultural facilities under construction today in 13 countries,” he points out. “As these facilities come on line, they enhance Cargill’s delivery of value-creating solutions to our food, agricultural and other customers.”
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,” he says.
