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DOW JONES NEWSWIRES
Archer Daniels Midland Co.'s (ADM) fiscal fourth-quarter
earnings plunged 83% amid weak demand, which led to segment losses
at its ethanol and agricultural services segments.
The agribusiness industry has been struggling since commodity
prices have dropped from their peak last summer. Ethanol-related
businesses have been hammered by slumping demand for the corn-based
fuel, with scores of them filing for bankruptcy. However, the U.S.
is considering several measures that could benefit the sector.
Chairman and Chief Executive Patricia Woertz said Tuesday that
ADM sees "signs of improving demand in the various food, feed and
fuel markets we serve."
For the quarter ended June 30, the world's largest grain
processor by revenue reported a profit of $64 million, or 10 cents
a share, down from $372 million, or 58 cents, a year earlier.
Revenue decreased 24% to $16.53 billion.
Analysts polled by Thomson Reuters most recently were looking
for earnings of 45 cents on revenue of $15.24 billion.
Gross margin fell to 2.2% from 3.7%.
At the oilseed-processing division, the company's largest
segment, earnings fell 40% as volume declined and fertilizer
margins fell. The corn processing division, which includes Archer
Daniels' ethanol business, as well as starches and sweeteners,
moved to a segment loss mostly on weak demand for ethanol.
Shares were off 2.7% to $29.55 in premarket trading. The stock
is up 11% the past year.
-By Tess Stynes, Dow Jones Newswires; 212-416-2481;
tess.stynes@dowjones.com