A worldwide glut of corn and soybean supplies put pressure on Cargill's second-quarter profit, but sales growth and continued improvements in the market for beef signal a strong second half to its fiscal year.
Profit for the Minnetonka, Minn.-based company dropped 6 percent to $924 million in the quarter that ended Nov. 30, as oversupply of those crops led to lower prices and fewer trading opportunities. The company said it also had declines in its global poultry business.
Revenue rose 8 percent to $29.2 billion, driven by an increase in the sales volume of metals, grains and oilseeds.
During the quarter, the agribusiness giant announced more than $1 billion of acquisitions, joint ventures and investments in facilities in the U.S., Brazil, South Africa and the United Kingdom. The company attributed the spending to rising demand for meat and efforts to improve animal health and food sustainability.
The company's animal nutrition and protein segment remained its largest contributor to profit, narrowly exceeding last year's second quarter.
