Recession pulls down ADM profits
Large drop in quarterly profits is an upset for the company and shareholders alike.
The economic downturn has cut Archer Daniels Midland Co.'s quarterly profits 83%, dragging share prices down 4.6%, Reuters reported. Its net earnings slid to $64 million, or 10 cents per share, for the fiscal's fourth quarter ended June 30, from $372 million, or 58 cents per share, in 2008. ADM's quarterly revenue slipped to $16.5 billion. It was $21.8 billion for the same period in 2008.
In the corn-processing segment, the company reported a net loss of $11 million compared with a year-earlier profit of $262 million. Its oilseeds processing segment dropped to $227 million from $375 million a year earlier and its agricultural services showed a $17 million net loss compared with a profit of $106 million a year ago.