Cargill Inc. reported Monday a 66 percent slide in first- quarter profit as volatile markets limited opportunities for the world’s largest agricultural commodity trader, though revenue rose by a third.
The U.S. conglomerate, whose activities range from grain handling and storage to meatpacking and energy trading, said four of its five business units reported lower earnings compared with a year ago as it reported its second straight quarter of decline.
Privately held Cargill said it was focused on regaining momentum in earnings after reporting a record full-year profit for fiscal 2011. Listed rivals, including Archer Daniels Midland Co. and Bunge Ltd., seemed unaffected by Cargill’s caution, with their stock caught in the broader bounce Monday. Both were recently up by more than 2 percent.
“It was a tough quarter,” said Cargill chief executive Greg Page in a statement. “With results down from recent levels, we’re focused on regaining our earnings momentum.”
Commodity markets have swung wildly in recent months as global economic uncertainty and currency fluctuations have prompted investors to move money in and out of commodities. This “risk, on, risk off” dynamic prompted a “disciplined approach to risk-taking,” the company said in a release.
During Cargill’s first-quarter, which ended Aug. 31, spot-month Chicago Board of Trade corn futures soared to a record high of $7.99 3/4 per bushel, plunged to $6.15 and then rebounded to as high as $7.65 before the quarter closed. They have since plummeted again, falling below $6.
