Cargill Reports Fourth-Quarter and Fiscal 2007 Earnings.MINNEAPOLIS -- Cargill today reported net earnings of $628 million in the fiscal 2007 fourth quarter ended May 31, up 75 percent from $358 million1 in the same period a year ago. Results reflected increased earnings from operations as well as a decrease in income tax-related expenses. For the full fiscal year, Cargill earned $2.34 billion, a 36 percent increase from $1.73 billion2 a year ago. Results reflected increased earnings from operations and decreased income tax-related expenses in the third and fourth quarters. Revenues for the full year rose 17 percent to $88.3 billion. Cash flow from operations Cash flow from operations A firm's net cash inflow resulting directly from its regular operations (disregarding extraordinary items such as the sale of fixed assets or transaction costs associated with issuing securities), calculated as the sum of net income plus noncash expenses increased 19 percent to $4 billion. "We are pleased to report Cargill's fifth consecutive year of record earnings," said Cargill Chairman Warren Staley Warren Staley is the former CEO of Cargill, Inc. of Minneapolis, Minnesota, USA. He joined Cargill in 1969. He is a graduate of Kansas State University, and Cornell M.B.A. 1967 . "The company's business diversity and global reach, our solutions approach to serving customers, and our team's ability to manage supply chains and price risk in fast-changing markets were responsible for today's results. We also benefited from the accelerated pace of economic growth in many parts of the world." Staley stepped down as Cargill's chief executive officer on June 1 this year and will retire as chairman on Sept. 11, as previously announced. In the fourth quarter, each of Cargill's five business segments exceeded the prior year's earnings performance. Among the five, the risk management and financial, industrial, and food ingredients and applications segments were the largest contributors to earnings. In the full fiscal year, the risk management and financial, origination and processing, and industrial segments posted record results, and the food ingredients and applications segment was ahead of last year. Earnings in agriculture services nearly matched last year's performance. Throughout the 2007 fiscal year, Cargill reinvested the majority of its cash flow in food ingredient and supply chain capabilities aimed at better serving customers in food, agriculture and risk management. Among the larger investments were the acquisition of LNB LNB Low Noise Block LNB Laredo National Bank (Texas) LNB Low Noise Block downconverter (satellite television) LNB Low NOx Burner LNB Lubbock National Bank (Texas) International Feed, an animal nutrition company based in Europe; the addition of oilseed oilseed the seeds of the linseed plant, rapeseed or canola, peanut, safflower (Carthamus tinctorius); biproduct oils from seeds include corn, grapeseed, olive, sesame, sunflower. processing and refining capacity and corn sweetener Sweetener A special feature added to a debt obligation or preferred stock to promote marketability. Notes: Warrants and convertibles are two popular sweeteners. See also: Convertible Bond, Kicker, Warrant Sweetener capacity in China; the expansion of oilseed processing capacity in Argentina; the addition of biofuel bi·o·fuel n. Fuel such as methane produced from renewable resources, especially plant biomass and treated municipal and industrial wastes. bi production capacity in Europe and the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. ; and the purchase of a flour milling and mixing business and a grain export terminal and inland elevator elevator, in machinery elevator, in machinery, device for transporting people or goods from one level to another. The term is applied to the enclosed structures as well as the open platforms used to provide vertical transportation in buildings, large ships, network in Canada. 1As reported in Cargill's earnings release of Aug. 17, 2006, the company's fiscal 2006 fourth-quarter earnings of $358 million excluded a $190 million noncash charge Noncash charge A cost, such as depreciation, depletion, and amortization, that does not involve any cash outflow. That is, this is treated as an accounting expense -- not a real expense that demands cash. related to a restructuring charge restructuring charge The expense of reorganizing a company's operations. A restructuring charge is an infrequent expense that generally results from asset writedowns or facility closings. taken by The Mosaic Company, in which Cargill is the majority shareholder. Including the noncash charge, Cargill earnings in the fiscal 2006 fourth quarter were $168 million. 2As reported in Cargill's earnings release of Aug. 17, 2006, the company's fiscal 2006 earnings of $1.73 billion excluded a $190 million noncash charge related to a restructuring charge taken by The Mosaic Company, in which Cargill is the majority shareholder. Including the noncash charge, Cargill's fiscal 2006 earnings were $1.54 billion. Cargill is an international provider of food, agricultural and risk management products and services. With 158,000 employees in 66 countries, the company is committed to using its knowledge and experience to collaborate with customers to help them succeed. For more information, visit http://www.cargill.com. |
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