Cargill Inc’s quarterly report showed a 41% decline in adjusted quarterly profit yesterday, as the supply issues related to the US-China trade war and flooding in the central United States have given the company many issues to deal with.
The largest privately held corporation in the States said operating profit dropped to $476m in Q4 through 31st May, much lower than $809m from the year-ago period.
The US-China trade war has pummeled the country’s agricultural sector as added tariffs have affected product exports from the United States. Devastating flooding across the country’s farm belt has created additional problems for the company.
“It was an off quarter. It wasn’t what we wanted but we’re quite optimistic about where we’re taking the company,” David Dines, Cargill’s CFO. “When you combine the weather with the trade war, it’s just a challenging time for the industry,” Dines added.