Cargill, the US agribusiness giant with operations in commodity trading, meat processing and food ingredients, recorded operating profits of $1.39bn (€1.28bn) for the second quarter of its 2016 financial year, a 44% increase compared with the same period last year.

The increase in earnings was driven by the sale of Cargill’s pork processing business to Brazilian meat giant JBS back in July 2015 in a deal valued at $1.45bn (€1.3bn). Cargill also disposed of its 50% stake in a steel business, which added to the result.

On an adjusted basis, second-quarter operating profits were $574m (€527m), down 13% on the same period a year ago. Cargill’s sales for the second quarter declined 10% to $27.3bn, which the group said reflected lower commodity prices and weaker demand in some markets.

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Divisions

Cargill said the adjusted operating earnings from its animal nutrition and protein division decreased slightly over the quarter, with higher results in animal nutrition offset by a decline in animal protein, largely in red meat.

Difficult economic conditions in North American cattle feeding and the long-anticipated decrease in Australia’s cattle supplies curbed earnings in the group’s global beef division.

Cargill’s grain origination and processing division recorded a moderate decline in adjusted operating profits over the quarter as commodity prices declined due to well-supplied markets after another large global harvest.

Cargill chief executive David MacLennan described the results as “solid” when set against a strong comparative period in the previous fiscal year.

“Within the segments, we saw performance gains in key global businesses, including animal nutrition, grain and oilseed processing, most of our poultry operations, and several food ingredients categories,” added MacLennan.