High corn prices hurt Archer Daniels Midland

prices, shifting global grain supplies and poor margins for processing oilseeds.

ADM reported its financial results for the second quarter ending 31 December, 2011. The company reported net income for the quarter of $80 million, a net fall of 89 per cent from the same period a year earlier.

After adjustments for one-off factors, including the closure of a bioplastics business, the company earned 51 cents per share, down 58 per cent on year.

ADM is the latest agricultural trading house to report weak results. Profits at Cargill, the biggest agricultural trader, dropped 88 per cent in its most recent quarter. 

“It was a tough quarter,” said Patricia Woertz, ADM chairman and chief executive. “The operating environment was challenging.

“Ongoing weakness in global oilseeds margins, lower results in corn and poor international merchandising results hurt our second quarter profits.”

ADM had warned of its difficulties earlier this month when it announced it was cutting 1,000 staftt from its 30,000-person payroll. Cargill is also cutting 2,000 workers.