Archer-Daniels Midland (ADM 43.36, -2.37) has given up 5.2% in the early going after reporting weaker than expected results for the first quarter.
The food company reported below-consensus earnings of $0.60 per share on a 4.2% year-over-year increase in revenue to $14.99 billion, which was also shy of estimates.
While the results did not live up to market expectations, the company did see operating profit growth across most of its segments while Other profit declined 18.9% to $37 million due to lower North American biodiesel volumes and margins.
Oilseeds Processing operating profit increased 20.3% to $314 million. Softseeds results showed a strong year-over-year improvement. Soybean crush margins were pressured by a competitive global protein meal market.
Corn Processing operating profit rose 32.6% to $171 million. Sweeteners and starches performed strongly on improved domestic demand and higher volumes/margins in the European unit. Sales of bioproducts increased thanks to strength in ethanol.
Agricultural Services operating profit increased 15.8% to $88 million. North America grain showed strong results with improving carries and solid execution volumes amid healthy demand for U.S. commodities. International merchandising declined to a lack of opportunities and unfavorable mark-to-market effects.
Wild Flavors & Specialty Ingredients Operating Profit climbed 7.1% to $75 million. The increase was fueled by strong sales volumes in Africa, Middle East, and China. Specialty ingredient sales declined slightly as solid protein results in North America were offset by weakness in specialty ingredients, including fibers.
Shares of Archer-Daniels Midland have traded in sideways fashion so far in 2017, hovering roughly 14.0% below their all-time high that was registered in early 2015.