- Archer Daniels Midland Co. reported lower-than-expected earnings for the second quarter, which fell to $386 million from $533 million in the same period last year.
- Profits sank for ADM's corn-processing segment despite robust domestic and export demand as record production decreased margins.
- The agricultural services segment did not fare well either, impacted by "lower margins and volumes of North American exports, as they were less competitive globally, and by a sharp upward move in commodity prices at the end of the quarter," ADM CEO Juan Luciano said.
The results were in part offset by the strong performance of ADM's recently acquired Wild Flavors and Specialty Ingredients businesses. ADM has been focusing on these higher-margin segments as of late.
Other notable news included the close of ADM's sale of its global chocolate business to Cargill, which received conditional regulatory approval last month. Now that ADM has exited the volatile cocoa and chocolate markets, the company can focus on specialty ingredients and flavorings as well as maintain its major segments, like corn processing, oilseeds, and agricultural services.