Cargill Inc. said Tuesday that net profits fell 68% to $326 million in its fiscal third quarter, highlighting the tough environment facing the global agribusiness sector.

All five business segments at the world's largest agribusiness group by revenue reported lower year-on-year profits.

Privately-owned Cargill had been buoyed by its fertilizer and grain-processing units in prior quarters, despite the reversal in commodity prices from record levels in mid-2009.

The sharp decline in earnings may weigh on listed rivals such as Archer Daniels Midland Co. (ADM) and Bunge Ltd. (BG), despite executives' insistence that long-term demand trends remain intact.

Cargill's narrowed profit in the fiscal third quarter to Feb. 28 compared with $1.03 billion a year earlier. Second quarter earnings of $1.19 billion included a $310 million gain from asset sales.

Greg Page, chairman and CEO, said in a statement: "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."

The company's origination and processing and industrial units - which includes its stake in fertilizer maker Mosaic Co. (MOS) - had supported earnings in recent quarters, but slipped in the latest period.

Earnings from its large risk management and investment unit fell for the seventh straight quarter. Profits also slipped at its food ingredients and applications business, the cornerstone of efforts to increase higher-margin sales.

The company did not provide a breakdown, but said sales and demand had fallen "in many businesses", while trading opportunities had also declined.

-By Doug Cameron, Dow Jones Newswires; 312-750-4135; doug.cameron@dowjones.com

Order free Annual Report for Bunge Limited

Visit http://djnewswires.ar.wilink.com/?link=BG or call 1-888-301-0513