ADM profits slide 25% on higher corn costs
Archer Daniells Midland (ADM) saw its net profit fall 25% in the fourth quarter, as corn costs, particularly for ethanol, weighed on the agribusiness giant’s margins.
“In a challenging fourth quarter, solid results from our global oilseeds business, particularly in South America, were more than offset by negative US ethanol margins and weaker US merchandising results,” said ADM chairman and CEO Patricia Woertz.
She added that the ongoing drought in North America could further impact ADM’s profits going forward, as US corn crops are among those most strongly affected.
Corn processing results slipped $48m in the quarter on negative ethanol margins. ADM reported net profit of $284m, or 43 cents per share, during the period, down from $381m a year earlier.
Meanwhile, revenue fell less than one percent from $22.87m to $22.68m.