US agribusiness giant Archer Daniels Midland (ADM) said it remains optimistic about the long-term fundamentals of its business, despite booking a drop in first-half and second-quarter profits today (31 January).
ADM saw its net profits drop by US$537m to $540m in the six months to the end of December. The company blamed “ongoing weakness in global oilseeds margins, lower results in corn and poor international merchandising results”.
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The company’s segment operating profit slid by 53% to $1.01bn. Sales in the period, however, climbed by 19.9% to reach $45.2m.
In the second quarter, net profits plummeted 89% to $80m, while segment operating profits dropped by $1.05bn to $309m. Sales in the period, however, grew by 11.4% to $23.3m.
“We continue to execute our plan to drive shareholder value: prioritizing capital projects, implementing productivity measures and returning capital to shareholders through increased dividends and share buybacks,” said ADM’s chairman and CEO, Patricia Woertz.
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