Cargill suffers losses trading energy
Cargill Inc. reportedly lost at least $100 million trading in energy markets in recent weeks, and this week replaced a senior trading manager, according to an energy-market publication.
Closely held Cargill declined to comment on the purported trading loss, which a report on SparkSpread.com Thursday said stemmed mostly from trading in mid-Atlantic power markets. The report didn't cite a source for its information about the purported loss, which it said Cargill suffered following massive energy-price moves due to bitter cold temperatures that hit the U.S. in January. The report said David Toole, a physical trading manager for Cargill in North America, left the company Wednesday.
Pete Stoddart, a spokesman for Cargill, said Thursday that the company has appointed Mike Newman as physical trading manager for the unit. He declined to comment on Mr. Toole or on any trading performance.
"We do not provide financial details on our individual business, only at company level," Mr. Stoddart said.
Mr. Toole couldn't immediately be reached for comment.
The Minneapolis-based conglomerate, which provides food, agriculture, financial and industrial products and services, says it buys about $1 billion of energy each year, and began building an internal energy trading operation more than 30 years ago. The company trades in natural gas, coal, power, oil and other energy markets for itself and on behalf of customers.
Last month Cargill, one of the world's largest privately held companies, said that profits rose to $556 million for the fiscal second quarter ended Nov. 30. Revenue fell 7% to $32.9 billion.
Cassandra Sweet contributed to this article.
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(END) Dow Jones Newswires
February 20, 2014 23:29 ET (04:29 GMT)