Minneapolis, MN, United States (4E) – Cargill Inc. reported on Tuesday a 28 percent drop in fiscal third-quarter profit, as a power-trading loss hurt results for the commodities company.
The sharp price increase in U.S. power markets in January resulted to a trading loss of around $100mn that was reported in February, though Cargill denied such claims. Part of that trading loss has been recovered by Cargill, according to a company statement on Tuesday.
Cargill, which has interests in meatpacking, grain trading and processing, and salt mining, posted a net profit of $319mn in the quarter ended Feb. 28, which is lower by 28 percent from a year ago.
Cargill, one of the world’s biggest privately held companies, said revenue was flat at $32bn.
Cargill Chief Executive Officer David MacLennan said external events affected the company’s quarterly results, even as there are operational improvements in key businesses.
The Minneapolis-based Cargill said its results were also impacted by the decision of China to reject certain U.S. corn shipments and severe winter weather, which slowed sales of some agricultural products.