By Angela Chen
Archer Daniels Midland Co. said its first-quarter sales fell 15%
as the strong dollar and weak markets led to softness in its
corn-processing business.
ADM's revenue missed expectations, though its earnings were
stronger than expected.
The Chicago-based company buys oilseeds, grains and other
commodities from farmers to make into ingredients that it then
sells to food producers. ADM has sought to focus more on
higher-margin businesses, such as specialty ingredients and
flavorings. In December, the company agreed to sell its global
cocoa business to Olam International Ltd. as it exits the volatile
cocoa sector.
Profit for the company's corn-processing business fell to $127
million from $251 million due to lower ethanol volumes and weaker
industry volumes.
ADM's oilseeds-processing business reported an operating profit
of $483 million, up from $330 million a year ago, due to "favorable
market conditions and delivered outstanding results," according to
Chief Executive Juan Luciano.
He added that the company was able to leverage its ag services
team to have "a good quarter overall, even as lower industry
ethanol margins limited earnings in corn, and the strong dollar
limited U.S. grain exports."
The company posted earnings of $493 million, or 77 cents a
share, up from $267 million, or 40 cents a share, in the prior-year
period.
Revenue fell to $17.51 billion from $20.67 billion.
Analysts had projected per-share earnings of 71 cents and
revenue of $20.58 billion.
Shares of ADM, inactive premarket, have declined about 3% this
year through Monday's close.
Write to Angela Chen at angela.chen@dowjones.com
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