By Austen Hufford 

Archer Daniels Midland Co. reported a steeper-than-expected drop in revenue in its fourth quarter, as the grain trader and processor said it was taking a "fresh look" at the capital it spends on operations and portfolio.

"With current headwinds likely to persist, we remain focused on the areas within our control," ADM Chief Executive Juan Luciano said.

Shares of the company declined 3.1% to $34.38 in light 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 company also raised its dividend to 30 cents from 28 cents and announced an investment in Harvest Innovations, a producer of non-GMO, organic and gluten-free ingredients.

In the latest quarter, revenue in the Chicago company's agricultural-services segment, its largest, fell 22% to $8.03 billion. Revenue in the corn-processing business fell 20%. ADM's oilseed-processing business posted a 22% drop in revenue. In the wild flavors and specialty ingredients segment revenue fell 3.6%.

Overall, the company posted earnings of $718 million, or $1.19 a share, up from $701 million, or $1.08 a share, a year prior. Excluding gains on sales, losses on asset impairments and other special items, per-share earnings fell to 61 cents a share from $1 a year earlier.

Revenue slid 21% to $16.45 billion.

Analysts had projected per-share earnings of 64 cents a share on revenue of $19.43 billion.

Write to Austen Hufford at austen.hufford@wsj.com

 

(END) Dow Jones Newswires

February 02, 2016 08:46 ET (13:46 GMT)

Copyright (c) 2016 Dow Jones & Company, Inc.
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