Archer Daniels Midland Misses Revenue, Profit Expectations
February 02 2016 - 9:50AM
Dow Jones News
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 09:35 ET (14:35 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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