3 days ago
Cargill reports four-year low as prices dip
The firm posted revenue of US$154bil in the year ended May 31. — Bloomberg
CHICAGO: Cargill Inc revenue declined to the lowest in four years as the largest private company in the United States continues to restructure in the face of declining crop prices and a shrinking American cattle herd.
The firm posted revenue of US$154bil in the year ended May 31, according to an annual report on its website.
That's down from about US$160bil a year earlier and the lowest since 2021, when revenue was reported at US$134bil.
Cargill has been restructuring its business for about a year now. The company reduced the number of business units to three from five and cut about 8,000 jobs at the end of last year.
'We're making strategic decisions to fuel growth for our company and the customers we serve,' chief executive Brian Sikes said in the annual report, citing a 'multi-year effort to simplify and modernise' that was started last August.
Cargill didn't immediately respond to requests for comment on the report.
Lower crop prices are having an impact across the industry as Minneapolis-based Cargill and its storied rivals, Archer-Daniels-Midland Co, Bunge Global SA and Louis Dreyfus Co, grapple with squeezed profits. — Bloomberg
