NEW YORK (AP) — Agribusiness conglomerate Cargill said Tuesday its net income dropped 28 percent in the fiscal third quarter because of increased electricity prices and other problems.
The Minneapolis company said its net income fell to $319 million and revenue held steady at $32 billion. Cargill said it suffered a trading loss related to an "unprecedented" spike in the U.S. power markets in late January. Its business was also affected by the rejection of some corn shipments to China and weather-related disruptions to railway service in North America. Cargill said it has since recovered some of the trading loss.
Cargill said earnings from its animal nutrition and protein grew. The business sells food and other products for cattle, poultry and other animals. It also reported more income from its industrial and financial service business, but said income from its food and beverage ingredient and its origination and processing businesses decreased.
The company's fiscal third quarter ended Feb. 28.
Cargill is privately held, so it does not report financial results with the same level of detail as publicly traded corporations.
