Dow Jones Newswires | Archer Daniels Midland Co.’s fiscal second-quarter earnings fell 1.9 percent amid investment gains and weaker prices, though the company’s sales volumes were up and its ethanol business returned to a profit.

The agribusiness giant projected improving demand for several of its key markets in recent quarters, and in November remained optimistic that U.S. farmers could bring in a late harvest despite poor weather. In addition to handling, transporting and processing a range of foodstuffs, ADM is among the largest U.S. ethanol producers. The company also has expanded its renewable business in Europe, Latin America and Asia.

For the quarter ended Dec. 31, the company reported a profit of $567 million, or 88 cents a share, down from $578 million, or 90 cents a share, a year earlier. The latest period included $89 million in other income-which includes investment gains and equity in earnings of unconsolidated affiliates, while the prior year included $58 million in other expense.

Revenue decreased 4.6 percent to $15.91 billion as higher sales volumes and foreign-exchange impacts were more than offset by lower average selling prices due to reduced commodities costs.

Analysts polled by Thomson Reuters most recently forecast earnings of 72 cents on revenue of $16.54 billion.

Gross margin fell to 6.6 percent from 7.3 percent.

Chairman and Chief Executive Patricia Woertz said, “While our earnings, in total, were comparable to last year’s strong second quarter, the market conditions and the mix of earnings were markedly different.”

Earnings plunged 68 percent at its agriculture-services business, which handles and transports grain from farm to market before it is processed into products such as cooking oil, animal feed and sweeteners and is one of its largest segment by net sales. Volume and margin opportunities that led to 47 percent earnings increase a year earlier “did not recur,” the company stated.

The company’s much smaller bioproducts division–which includes ethanol, returned to the black as ethanol margins improved amid higher sales volumes and lower corn costs.

At its oilseeds processing unit, its biggest segment by volume that includes its biodiesel business, earnings rose 10 percent amid higher volumes and improved margins.

Shares closed Monday at $30.16 and didn’t trade premarket. The stock is up 9.7% the past year.

-By Tess Stynes, Dow Jones Newswires; 212-416-2481; Tess.Stynes@dowjones.com;