US agribusiness firm Cargill has reported that its net earnings declined by 42% for the third quarter of 2013 to $445m, compared with $766m in the same period of 2012 due to severe US drought that affected the company's meat processing margins and grain-handling business.
For the quarter ended 28 February 2013, the company's revenues increased 1% to $32.2bn.
Cargill chairman and chief executive officer Greg Page said that the company's earnings were below last year's record third quarter.
"In North America, our meat processing businesses were pressured by the drought-related high cost of feed ingredients. Even though many of our global food ingredients businesses experienced higher input costs, they nearly matched their strong performance in last year's third quarter," Page added.
The company's agriculture services division earnings declined primarily due to the prolonged impact of the last year's drought-reduced crops in North America. Earnings in the food ingredients and applications segment declined compared to Q3 2012.
The animal nutrition business results were affected by Venezuela's currency devaluation in February, difficult economic conditions in meat and dairy production in several regions as well as high feeding costs, tight cattle supplies and an oversupplied turkey market.
Cargill's industrial segment, which supplies salt and steel products and services, reported a rise in earnings during Q3 and sales volumes of road deicing products increased. The risk management and financial segment reported a marginal decline in profits compared with Q3 2012.
For the nine months, the company's earnings totalled $1.38bn, up 66% from $1.1bn in the previous year, while revenues totalled $101.2bn.
