Archer Daniels Midland Misses Q3 Expectations

Archer Daniels Midland Company ADM reported weaker-than-expected results for the third quarter on Tuesday. The Chicago, Illinois-based company reported quarterly net earnings of $252 million, or $0.41 per share, compared to $747 million, or $1.14 per share, in the year-ago quarter. Its adjusted earnings slipped to $0.60 per share from $0.86 per share. Its revenue dropped to $16.565 billion from $18.117 billion. Analysts were expecting earnings of $0.70 per share on revenue of $17.8 billion. The average estimate among 11 Estimize users was for earnings of $0.71 per share and revenue of $17.47 billion. Agricultural Services operating profit dropped $5 million year-over-year to $149 million in the recent quarter, while Corn Processing operating profit shrank to $165 million from $341 million. Oilseeds operating profit slipped $72 million year-over-year to $276 million, while Wild Flavors and Specialty Ingredients operating profit came in at $70 million for the quarter. "The ADM team executed well in an environment very similar to the second quarter," said ADM Chief Executive Officer Juan Luciano. "Ag Services earnings were limited by lower margins and volumes of North American exports, due to the continued strength of the U.S. dollar and ample global crop supplies, particularly from South America." ADM shares gained 1.34 percent to close at $46.27 yesterday.