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ADM sees profits plunge

ADM has reported financial results for the quarter ended June 30, 2015. The company reported adjusted earnings per share of $0.60, down from $0.79 in the same period last year. Adjusted segment operating profit was $724 million, down 13 percent from $835 million in the year-ago period. Net earnings for the quarter were $386 million, […]

ADM has reported financial results for the quarter ended June 30, 2015.

The company reported adjusted earnings per share of $0.60, down from $0.79 in the same period last year. Adjusted segment operating profit was $724 million, down 13 percent from $835 million in the year-ago period. Net earnings for the quarter were $386 million, or $0.62 per share, and segment operating profit was $808 million.

“Our second-quarter results demonstrate the strength and value of our geographic and business portfolio diversity,” said ADM Chief Executive Officer Juan Luciano. “In Corn, domestic and export demand for ethanol was robust, but record industry production limited margins. This was partially offset by strong results from our corn sweeteners and starches business.”

“In Oilseeds, good meal demand supported strong North American soybean crushing results. And South American origination and export volumes were up, leading to good throughput at our expanded

origination and port network. These, combined with the flexibility of our global crush plants, helped the Oilseeds team deliver another strong performance.”

“The WFSI team had an excellent quarter and continues to make great progress toward achieving their targeted cost and revenue synergies.”

“Ag Services earnings were impacted by lower margins and volumes of North American exports, as they were less competitive globally, and by a sharp upward move in commodity prices at the end of the quarter. But, within our Ag Services segment, the milling business had record second-quarter results.”

“We’ve continued to advance our strategic plan that’s improving our ROIC and growing our EVA. Among numerous other actions, we closed the sale of our global chocolate business to Cargill; we closed the Barcarena port transaction with Glencore in June; and we remain on track to close both our Eaststarch transaction and the sale of our global cocoa business later this year.”

In the second quarter, Wild Flavors and Specialty Ingredients operating profit was $104 million. Wild Flavors had strong results in North America, and the specialty proteins business had one of its best quarters ever.

The business continues its strong progress toward achieving the cost and revenue synergies identified last year, the company said, with nearly 600 projects in the pipeline and more than 50 revenue synergy wins across the business units and geographies.