Cargill today reported $480 million in net earnings for the 1999-00 fiscal year ended May 31,
compared with $597 million a year ago.

Operating earnings for the fiscal 2000 year, before charges for a write-down of assets in a number of businesses and a small loss from discontinued operations, were $659 million, a 200 percent increase from the $220 million reported for the previous year. Fiscal 1999 net earnings of $597 million also included a onetime gain from the sale of the company's international seed business.

Revenues in fiscal 2000 were $48 billion, up 4 percent from the previous year. Cash flow from continuing operations was $1.7 billion. The company had a $6 million net loss in the fourth quarter due to the asset write-downs taken in that period.

"Strong performances from several businesses, most notably in our financial markets family and beef processing, contributed to this significant improvement in operating earnings over last year's depressed results,'' said Chief Executive Officer Warren Staley. "We also made good progress in restructuring our organization and portfolio around our new corporate strategy to take our basic expertise in food and agriculture to new levels of value and customer service. While that entails some short-term pain, we believe that at 135 years old Cargill is just getting its second wind.''

Staley said the global capital markets and value investing groups helped pace the financial businesses to a strong year. Beef processing benefited from the vigorous U.S. economy and consumers' renewed enthusiasm for beef. Other top performers were energy, poultry, animal nutrition, cattle feeding, cocoa and sugar. Cargill's North Star Steel staged a solid recovery.

Despite a slowly recovering Asian economy, earnings among the company's grain trading and processing businesses remained depressed, Staley said. "Agriculture needs a healthy dose of demand growth, and that tonic must come from developing parts of the world where growing population and income will add up to more demand for more and better food,'' he said. "As economies in Asia regain momentum, it's critical that efforts to improve access to their markets are redoubled.''

Cargill is an international marketer, processor and distributor of agricultural, food, financial and industrial products and services with 85,000 employees in 60 countries. The company provides distinctive customer solutions in supply chain management, food applications and health and nutrition.

Company news release
N2919