Source: Cargill news release
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Cargill today reported $3.2 billion in adjusted operating earnings for the 2018 fiscal year, one of its best performances. The fourth quarter also was very strong. The company’s improved financial results over the past two years are the outcome of significant efforts by its teams to redefine how Cargill operates. The organization runs today with greater agility and stronger integration to serve customers’ rapidly changing needs.
Animal Nutrition & Protein surpassed last year’s strong results, making the segment the largest contributor to Cargill’s adjusted operating earnings in the fourth quarter and the full year. The protein business delivered an exceptional performance, fueled by rising domestic and export demand for North American beef and steady expansion in value-added egg products. Global growth in feed additives, micronutrients and premixes for customized animal nutrition also boosted earnings for the year. Excess supplies of chicken relative to domestic demand in Thailand contributed to a moderate decrease in global poultry results in both periods.
During the year, the segment invested significantly to serve growing demand for protein. It acquired Pollos El Bucanero, a leading retail-branded poultry business in Colombia. It formed U.K.-based Avara Foods, a fresh poultry joint venture, and opened a major poultry processing plant in the Philippines with Jollibee Foods. In the U.S., the segment expanded facilities for fresh ground beef, and cooked meat and eggs.
In animal nutrition, Cargill acquired U.S.-based Diamond V and invested in Austria-based Delacon; they are the respective leaders in improving animal health through fermentation- and plant-based feed additives. The segment purchased Integral Animal Nutrition, a Brazilian producer of cattle mineral feeds. In the U.S., it bought Pro-Pet, a private-label pet food maker, and the animal feed business of Southern States Cooperative. Across Asia, it added to its existing network of feed mills and opened technical application centers supporting aqua nutrition in India and Vietnam. It also invested in Dublin-based Cainthus, an animal facial recognition startup, and broadened its farm management software offerings; both will give farmers a digital boost to their productivity and profitability.