Despite a 2% rise in revenue for the quarter ending 28 February, US commodities trader Cargill has reported a 23.8% drop in profits to $495m for the quarter, with the new US tax legislation accounting for a $161m charge. The company said it expected its full-year earnings would be between $1.5bn and $2.4bn, down from an earlier forecast of $1.6bn to $1.8bn.
Despite a 2% rise in revenue for the quarter ending 28 February, US commodities trader Cargill has reported a 23.8% drop in profits to $495m for the quarter, with the new US tax legislation accounting for a $161m charge. The grain trading industry has been experiencing low profitability in recent years as a global glut of crops have kept prices low and limited volatility in the commodities markets leaves little room for margins.