Dive Brief:
- ADM reported net earnings of $374 million, or 56 cents per share, down from 77 cents per share a year earlier, as charges related to a failed acquisition in Australia damaged the bottom line.
- Corn processing was the star for the agribusiness giant in the most recent quarter. Earnings in that unit rose to $279 million from just $3 million a year earlier.
- Oilseeds processing also proved profitable, with earnings in that business rising 16% to $478 million.
Dive Insight:
When the news broke that regulators had quashed ADM's plan to buy GrainCorp, it was clear that earnings would take a hit. What wasn't clear was the size of that hit. Suffice it to say that it's now clear that this was a substantial hit for ADM to take.
But what's worth noting here is that ADM took that hit and has come through quite well. Profits are down, but the company is still profitable. This, we suppose, is a tribute to the power of diversification and to the skills of ADM's management team.
