Noble Group reports decreased profits due to cotton
Singapore-based commodities firm Noble Group has posted a 57% fall in fourth-quarter net profits, as operating margins from its cotton business dropped.
Noble’s businesses range from cotton and sugar to coal and iron ore. The company earned $105.7 million in the three months ended December, down from $247.5 million a year ago.
The fourth quarter results were, however, an improvement over the July-September period when Noble posted its first quarterly loss as a listed company.
Noble said it was hurt by defaults by cotton farmers during the third quarter which forced it to cover physical deliveries to customers by purchasing cotton in the spot market at elevated prices.
“Overall trading environment proved challenging during the year,” Noble said in the notes that accompanied its earnings report.
