Archer Daniels Midland (ADM 41.90, -0.91) has given up 2.1% in response to disappointing quarterly results. Today's decline leaves the stock just above its mid-July low of $40.22.
The food processing company reported below-consensus earnings of $0.45 per share on a 6.3% year-over-year decline in revenue to $14.83 billion, which was also shy of expectations.
The company's CEO noted that the earnings disappointment was due to headwinds in the agricultural services and oilseed businesses. Weakness in the Agricultural Services unit was partially offset by a good showing from the Corn Processing segment. The Oilseeds Processing segment was impacted by lower global crush margins and weak South America origination margins.
Agricultural Services revenue declined 12.7% year-over-year to $6.08 billion while operating profit fell 55.4% year-over-year to $87 million. A strong quarter during the previous fiscal year made for a difficult comparison.
Corn Processing revenue fell 2.8% to $2.33 billion while Corn Processing operating profit increased 18.2% year-over-year to $253 million.
Oilseeds Processing revenue decreased 0.4% to $5.75 billion while operating profit declined 17.9% to $119 million
Wild Flavors & Specialty Ingredients revenue declined 5.6% to $577 million while operating profit fell 16.4% to $61 million.