Archer Daniels Midland Co. (NYSE:ADM) shares eased early trade, after its third quarter failed to live up to Wall Street’s expectations.
One of the world’s biggest crop traders and processors, said net earnings during the quarter came in at US$192mln, or 34 US cents per share, down from the US$341mln, or 58 US cents, reported the previous year.
Adjusted EPS stood at 45 US cents, missing market expectations for 55 US cents.
In the same period, revenue stood at US$14.83bn, down from US$15.83bn recorded the year before. It was also off analysts’ consensus for US$16.04bn.
Operating environment more challenging than expected
During the quarter, oilseeds processing revenue came to US$5.75bn, lower from the US$5.78 billion, reported earlier and again below market expectations for US$6.19bn.
CEO Juan Luciano admitted in a statement released Tuesday: “Our third quarter results were below our expectations, as the operating environment in our ag services and oilseeds businesses was more challenging than anticipated."
He also said the company is transitioning to "lower capital spending and increasing benefits from these investments."
Its shares were down 5.89% at US$40.29.