Archer Daniels Midland Q3 Profit And Revenues Decline

(RTTNews) - Grain processor Archer Daniels Midland Co. (ADM) reported that its net earnings for the third-quarter 2015 fell from the previous year. Quarterly revenues for the quarter declined about 8.5% from last year.

"We continue to execute our strategic plan. Among other actions, we've closed on the sale of the global cocoa business, acquired Eatem Foods, and closed the Eaststarch transaction. We're also making strong progress in driving operational efficiencies, which will further enhance our cost position. And we remain committed to our balanced approach to capital allocation for our shareholders," said ADM Chief Executive Officer Juan Luciano.

Net earnings attributable the company for the quarter fell to $252 million, or $0.41 per share, from $747 million or $1.14 per share in the same quarter last year.

Adjusted segment operating profit was $684 million, down 27 percent from $941 million in the year-ago period.

Quarterly adjusted earnings per share were $0.60, down from $0.86 in the previous year. Analysts polled by Thomson Reuters expected the company to report earnings of $0.70 per share for the quarter. Analysts' estimates typically exclude special items.

Revenues for the quarter declined about 8.5% to $16.57 billion from $18.12 billion in the prior year. Wall Street expected revenues of $17.77 billion.

Adjusted earnings per share of $0.60 excluded approximately $0.19 of losses on debt extinguishment, $0.04 of gains on asset sales, $0.07 of LIFO credits, $0.10 of charges related to asset impairments and restructurings, and a $0.01 charge to update the estimated annual effective tax rate.

Agricultural Services operating profit was $149 million, down $5 million from the year-ago period.

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.

Corn Processing operating profit decreased from $341 million to $165 million. Sweeteners and starches results declined $33 million to $125 million as North American sweetener volumes and margins remained solid, but co-product margins were weaker, and the slower ramp-up of commercialized volumes at the Tianjin sweetener facility limited absorption of fixed costs.