Archer Daniels Midland Co. reported steeper-than-expected drops in revenue and profit in its third quarter, as the grain trader and processor was hurt by weak ethanol margins and lower North American export volumes.

Shares fell 2.8% in premarket trading.

ADM, among the world's largest agribusinesses and a major ethanol producer, has been buffeted recently by lower ethanol-production margins and sluggish overseas demand for North American crops.

The Chicago company has also faced weakness in its grain-trading business as a strong U.S. dollar and large crops in South America crimped export demand for North American grain.

In the third quarter, revenue in ADM's corn-processing business fell 17% to $2.52 billion.

Revenue in ADM's agricultural-services segment fell 6.2% to $6.6 billion.

ADM's oilseed-processing business posted a 12% drop in revenue to $6.75 billion.

The wild flavors and specialty ingredients segment was a bright spot, as revenue more than doubled to $588 million in the quarter.

Overall, the company posted earnings of $252 million, or 41 cents a share, down from $747 million, or $1.14 a share, a year earlier.

The quarter included $65 million in impairment, exit and restructuring costs.

Excluding those charges and other special items, per-share earnings fell to 60 cents a share from 86 cents a year earlier.

Revenue slid 8.6% to $16.57 billion.

Analysts had projected per-share earnings of 70 cents a share on revenue of $17.77 billion.

Write to Chelsey Dulaney at Chelsey.Dulaney@wsj.com

Subscribe to WSJ: http://online.wsj.com?mod=djnwires

(END) Dow Jones Newswires

November 03, 2015 08:45 ET (13:45 GMT)

Copyright (c) 2015 Dow Jones & Company, Inc.
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