Archer Daniels Midland Co. the world’s largest corn processor and among the largest U.S. ethanol producers, reported weaker-than-expected quarterly earnings Tuesday, hampered by inventory charges, and its shares fell more than 7 percent.
For the first quarter ended Sept. 30, ADM reported a net profit of $345 million, or 54 cents per share, down from $496 million, or 77 cents per share, a year earlier.
Analysts on average were expecting earnings of 75 cents per share, according to Thomson Reuters I/B/E/S.
Revenue rose to $16.8 billion from $14.9 billion, beating the analysts’ average forecast of $15.66 billion.
Profit rose in Decatur-based ADM’s corn and oilseed processing segments, but fell in agricultural services.
Stronger oilseed crush margins and increased volumes lifted oilseeds processing profit 8 percent to $308 million.
Corn processing profit jumped to $341 million from $188 million as bioproducts, which swung to a profit on improved ethanol and lysine margins and stronger ethanol sales, offset lower results in sweeteners and starches.
Earnings in agricultural services fell 25 percent to $132 million as supply shifts due to drought and grain export restrictions in the Black Sea region weighed on merchandising and handling profits.
Shares of ADM were down 5.3 percent at $31.61 in trading before the market opened.
