(Dow Jones) -- Cargill Inc. reported a $19 million loss for its most recent quarter, pressured by struggles in its core grain business.
Slowing global demand for agricultural commodities and muted market volatility contributed to weak prices and few profitable trading opportunities, Cargill said, weighing down improvements in its food ingredients and poultry businesses.
David MacLennan, Cargill's chief executive and chairman, said the agricultural company continues to seek better profits and "sustained growth" as it adds and subtracts business lines from its diverse portfolio, and retools others. "We have more work to do, but where we have already made changes we are seeing improved results," he said.
Cargill's fiscal fourth-quarter loss compared with a $230 million profit for the same quarter last year. When adjusting earnings for deals and other one-time events, Cargill earned $15 million in the quarter ended May 31, compared with a $51 million loss for the prior-year period.
Revenue for the quarter declined 5% to $27.1 billion.
Cargill is revamping its business in response to sliding commodity prices, a slumping farm economy and shifting consumer tastes, which have prompted the Minnesota-based company to alter the way it raises poultry and livestock. The largest U.S. private company by sales, which remains family owned, also is positioning for global demographic shifts, investing in the farmed fish business and processing plants capable of producing a wider range of meat products.
The 151-year-old company has also been trimming away some of its dozens of business lines, last year selling its U.S. pork operations and spinning out a hedge fund division.
Cargill's fiscal 2016 earnings totaled $2.38 billion, up 50% from the prior fiscal year. Adjusting for Cargill's sale of its U.S. pork business and other one-time events, Cargill said it earned $1.64 billion, 15% below its fiscal 2015 total.
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