Sign up UNITED KINGDOM
Proactive Investors - Run By Investors For Investors

Archer Daniels Q4 earnings fall 25%

Archer Daniels Q4 earnings fall 25%

Archer Daniels Midland Company (ADM)(NYSE:ADM) reported Tuesday fourth quarter earnings dropped 25 per cent, a result of negative ethanol margins and weak agricultural services results.

For the quarter that ended June 30, the oilseeds, corn, wheat and cocoa processor reported profit of $284 million, or 43 cents per diluted share, down from $381 million, or 58 cents per diluted share in the fourth quarter of 2011.

Excluding items, adjusted earnings totalled 38 cents per share, attributed to lower segment operating profit offset by lower expenses. Adjusted earnings were 69 cents per share in last year’s quarter.

Analysts anticipated earnings of 60 cents per share.

Revenue edged down 0.9 per cent to $22.68 billion from $22.87 billion, but beat analyst estimates for $21.75 billion.

“In a challenging fourth quarter, solid results from our global oilseeds business, particularly in South America, were more than offset by negative U.S. ethanol margins and weaker U.S. merchandising results,” stated ADM chairman and CEO, Patricia Woertz.

The oilseeds processing unit – which processes oilseeds like soybeans, sunflower seed and canola – saw operating profit decline by $118 million to $331 million due to weaker cocoa results. Processing volumes increased 11 percent and sales rose 4.4 per cent.

At its corn processing business, the company reported operating profit of $74 million, down from $122 million last year.

Its agricultural services division posted an operating profit of $123 million from $345 million.

Overall, gross margin narrowed to 3.6 per cent from 4.8 per cent in the year-earlier period.

Fiscal 2012 dividends and share repurchases totalled nearly $1 billion.

Looking ahead, the company expects U.S. crop carryouts to be low due to drought that has reduced the potential size of U.S.
corn crop. The company said it is tracking the development of other crops in North America and Europe. The smaller South American spring harvest means that the U.S. is currently the primary global supplier of soybeans and meal.

The Decatur, Illinois-based company processes oilseeds, corn, wheat and other agricultural commodities and also makes vegetable oil, corn sweeteners and other feed ingredients.

The company currently has more than 270 processing plants, 420 crop procurement facilities and a large crop transportation network connecting its products to more than 160 countries across the globe.

Company shares were down 3.67 per cent to $26.48 on the New York Stock Exchange Tuesday.

View full ADM-A profile View Profile

Archer Daniels Midland Timeline

Related Articles

Planks of wood
July 03 2017
Obtalafound on numerous occasions that the WoodBois team had been very conservative in its estimates and projections.

No investment advice

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person. You further understand that none of the information providers or their affiliates will advise you personally concerning the nature, potential, advisability, value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter.

You understand that the Site may contain opinions from time to time with regard to securities mentioned in other products, including company related products, and that those opinions may be different from those obtained by using another product related to the Company. You understand and agree that contributors may write about securities in which they or their firms have a position, and that they may trade such securities for their own account. In cases where the position is held at the time of publication and such position is known to the Company, appropriate disclosure is made. However, you understand and agree that at the time of any transaction that you make, one or more contributors may have a position in the securities written about. You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate.

From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.

© Proactive Investors 2017

Proactive Investor UK Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use