EmailArcher-Daniels (ADM $28.45 -1.26) reported second quarter earnings of $0.51 per share, $0.26 worse than the Capital IQ Consensus of $0.77, while revenues rose 11.4% year/year to $23.31 billion versus the $23.51 billion consensus.
"It was a tough quarter... The operating environment was challenging. Ongoing weakness in global oilseeds margins, lower results in corn and poor international merchandizing results hurt our second quarter profits. "We remain optimistic about the long-term fundamentals of our business and the growing earnings power of our company... 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." Continued weakness in global oilseeds crushing margins, particularly in Europe, reduced overall results. Worldwide demand for crops and agricultural products continues to grow at a stable rate. The South American harvest is beginning and is expected to help maintain adequate global soybean supplies. With adequate global crop supplies and a smaller U.S. crop last year, the U.S. lost export volumes. Global protein meal demand continues to grow, led by Asia, but crush margins, while improved, remain weak. U.S. ethanol margins are weak, with excess production amid reduced exports. U.S. corn sweetener capacity remains tight, driven by strong export demand."
