ShippingWatch

Overcapacity in shipping reflected in Cargill's results

Revenue at the major trading house declined 11 percent in the third quarter of the fiscal year 2015/2016, though the adjusted operating profit improved. Lower commodity prices and challenging shipping markets are cited as factors.

Major US-based trading house Cargill was unable to dodge the dire state of the commodity markets, where dry bulk in particular is taking big hits. In the company's interim report for the third quarter of the fiscal year 2015/2016, revenue declined 11 percent to USD 25.2 billion, a development that reflects the lower commodity prices, the strengthening of the US dollar against other currencies as well as the sale of the group's pork business in the second quarter, writes Cargill.

The adjusted operating profit increased 13 percent to USD 476 million in the third quarter, up from USD 421 million in the same period 2014/2015, and judging by the tough market conditions, CEO David MacLennan is pleased with the result:

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