Apr. 15--The dismal economy that has withered home values and ruined 401(k)s landed another blow on Tuesday when Cargill reported a 68 percent drop in profit for its third quarter.

It was the steepest drop in earnings in years for the multibillion-dollar giant and the latest measure of a global recession that most say will last through the year.

"Cargill's earnings turned down in the third quarter, as the troubles in the global economy and financial system arrived at our company's doorstep," said Greg Page, Cargill chairman and chief executive officer, in a statement.

Earnings of $326 million for the period ended Feb. 28 were down from $1.03 billion in the same period a year earlier. The downturn marks the end of a gold rush for the company brought on by a global rise in commodity values.

"We came into this period with a very strong balance sheet," said Lisa Clemens, a Cargill spokeswoman.

In 2007 and 2008, as the agriculture world watched in amazement at soaring prices for commodities such as corn, wheat and soybeans, Cargill braced for the eventual downturn by scaling back its acquisitions.

"There were a lot of things that we didn't do wrong coming into this period," Clemens said.

Cargill converted to longer maturities, reined in expenditures and deferred some plans, she said. Capital expenditures will be "down substantially" from last year, she added.

As sales slowed, Cargill did lay off some employees, but only a handful, Clemens said.

"In the food area, what we're seeing is that consumers are being very cautious, so that is dampening demand," she said. The economy also has forced many consumers to exhaust the larder rather than going to the market as often, especially in Russia, Eastern Europe and areas of Western Europe, Clemons said.

Amid the downturn, the company has had to negotiate with the Venezuelan government for continued ownership of a rice plant, which Venezeulan President Hugo Chavez last month moved to expropriate.

In the first three quarters, the company earned $3.01 billion, up 4 percent from $2.9 billion a year ago.

Excluding earnings from its majority investment in the Mosaic Co., Cargill's results were below the year-ago level in both the quarter and year so far.

Cargill is an international provider of food, agricultural, financial and industrial products and services. The privately held company employs 160,000 people in 67 countries.

Clemens said the company, as a rule, doesn't make statements about the direction of the economy.

"We don't know if it will get worse," she said. On the other hand, she added, "We're not predicating our decisions based on things getting very much better this year."

Matt McKinney --612-673-7329

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