{"id":5176,"date":"2015-02-04T13:14:25","date_gmt":"2015-02-04T19:14:25","guid":{"rendered":"http:\/\/news.medill.northwestern.edu\/chicago\/?p=5176"},"modified":"2015-02-04T13:14:25","modified_gmt":"2015-02-04T19:14:25","slug":"archer-daniels-midland-beats-4q-profit-estimate-misses-sales-forecast","status":"publish","type":"post","link":"https:\/\/news.medill.northwestern.edu\/chicago\/archer-daniels-midland-beats-4q-profit-estimate-misses-sales-forecast\/","title":{"rendered":"Archer Daniels Midland beats 4Q profit estimate, misses sales forecast"},"content":{"rendered":"<p>By Yasufumi Saito<\/p>\n<p><a href=\"http:\/\/www.adm.com\/en-US\/Pages\/default.aspx\" target=\"_blank\">Archer Daniels Midland Co.<\/a>, a leading agricultural processer and food ingredient provider, reported Tuesday <a href=\"http:\/\/www.adm.com\/en-US\/investors\/_layouts\/PressReleaseDetail.aspx?ID=625\" target=\"_blank\">a mixed result<\/a> for the fourth quarter. While profit beat Wall Street\u2019s estimate, sales fell short of expectations.<!--more--><\/p>\n<p>For the quarter ended Dec. 31, profit was $701 million, or $1.08 per diluted share, up 87.4 percent from $374 million, or 56 cents per diluted share, in the year-ago quarter. It topped a consensus earnings estimate of 94.2 cents per share as compiled by Bloomberg L.P.<\/p>\n<p>Earnings in agricultural services sharply improved as the agribusiness giant handled record volumes of U.S. corn and soybean crops that the company trades and processes.<\/p>\n<p>Higher profit from ethanol, the corn-based biofuel, contributed to the corn processing segment, but it was offset by rising grain costs and lower average selling prices of sweeteners and starches.<\/p>\n<p><a href=\"https:\/\/docs.google.com\/spreadsheets\/d\/17VdPHIkECf6ypP9P4Uu1tqk7T4zKxu-B2_Zibt5P9QI\/pubchart?oid=1799135493&amp;format=interactive\" target=\"_blank\" rel=\"attachment wp-att-5276\"><img fetchpriority=\"high\" decoding=\"async\" class=\"aligncenter wp-image-5276 size-full\" src=\"http:\/\/news.medill.northwestern.edu\/chicago\/wp-content\/uploads\/sites\/3\/2015\/02\/ADM1.png\" alt=\"ADM1\" width=\"600\" height=\"371\" srcset=\"https:\/\/s3.amazonaws.com\/medill.wordpress.offload\/WP%20Media%20Folder%20-%20medill-reports-chicago\/wp-content\/uploads\/sites\/3\/2015\/02\/ADM1.png 600w, https:\/\/s3.amazonaws.com\/medill.wordpress.offload\/WP%20Media%20Folder%20-%20medill-reports-chicago\/wp-content\/uploads\/sites\/3\/2015\/02\/ADM1-300x186.png 300w\" sizes=\"(max-width: 600px) 100vw, 600px\" \/><\/a>Sales declined 13.5 percent to $20.89 billion from $24.14 billion in the year-earlier quarter, missing a forecast of $23.91 billion as compiled by Bloomberg.<\/p>\n<p>Quarterly revenues of the oilseeds processing segment dropped 13.9 percent to $7.04 billion, the corn processing segment\u2019s revenues slipped 5.4 percent to $2.89 billion and the agricultural services segment\u2019s revenues plunged 16.9 percent to $10.56 billion, all on a year-over-year basis.<\/p>\n<p>\u201cWe don&#8217;t think the outsize ag services profits will last forever,\u201d said Jeffrey Stafford, equity analyst at Morningstar Inc., in a note. \u201cWeather fluctuations probably won&#8217;t lead to bumper crops year after year.\u201d<\/p>\n<p>The recent falling price of crude oil casts a negative forecast on ethanol makers.<\/p>\n<p>\u201cWhile U.S. ethanol demand was seasonally strong, boosted by the domestic response to lower gasoline prices, high industry production has built excess inventories,\u201d said CEO Juan Luciano in a statement. \u201cMargins in this industry should remain challenged until supplies are better aligned with demand.\u201d<\/p>\n<p>\u201cThe firm&#8217;s ethanol business produced better results than we expected,\u201d Stafford said in the note. But the outlook isn\u2019t optimistic. \u201cLower oil prices, which increased the demand for cheaper gasoline and thus the demand for ethanol, were probably a contributor to ethanol&#8217;s outperformance,\u201d he said.<\/p>\n<p><a href=\"https:\/\/docs.google.com\/spreadsheets\/d\/1Fvosn16HJNiVQRfC2pirNY5esg3UJf3kuTRh6wLTg3U\/pubchart?oid=1020407970&amp;format=interactive\" target=\"_blank\" rel=\"attachment wp-att-5277\"><img decoding=\"async\" class=\"aligncenter wp-image-5277 size-full\" src=\"http:\/\/news.medill.northwestern.edu\/chicago\/wp-content\/uploads\/sites\/3\/2015\/02\/ADM2.png\" alt=\"ADM2\" width=\"600\" height=\"371\" srcset=\"https:\/\/news.medill.northwestern.edu\/chicago\/wp-content\/uploads\/sites\/3\/2015\/02\/ADM2.png 600w, https:\/\/news.medill.northwestern.edu\/chicago\/wp-content\/uploads\/sites\/3\/2015\/02\/ADM2-300x186.png 300w\" sizes=\"(max-width: 600px) 100vw, 600px\" \/><\/a>For the full year of 2014, earnings increased 67.5 percent to $2.25 billion, or $3.43 per diluted share, from $1.34 billion, or $2.02 per diluted share, in the year-ago period. Sales, however, decreased 9.6 percent to $81.2 billion from $89.8 billion in the same period.<\/p>\n<p>The Decatur, Illinois-based company raised its quarterly dividend by 17 percent to 28 cents per diluted share.<\/p>\n<p>ADM shares closed up 59 cents, or 1.22 percent, at $48.76.<\/p>\n<div id=\"featurecaption\">Archer Daniels Midland released a mixed fourth quarter result Tuesday. (\u00a9 Archer Daniels Midland)<\/div>\n","protected":false},"excerpt":{"rendered":"<p>By Yasufumi Saito Archer Daniels Midland Co., a leading agricultural processer and food ingredient provider, reported Tuesday a mixed result for the fourth quarter. While profit beat Wall Street\u2019s estimate, sales fell short of expectations.<\/p>\n","protected":false},"author":59,"featured_media":5181,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[27,243],"tags":[],"class_list":["post-5176","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","category-winter-2015"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.6 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Archer Daniels Midland beats 4Q profit estimate, misses sales forecast - Medill Reports Chicago<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/news.medill.northwestern.edu\/chicago\/archer-daniels-midland-beats-4q-profit-estimate-misses-sales-forecast\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Archer Daniels Midland beats 4Q profit estimate, misses sales forecast - Medill Reports Chicago\" \/>\n<meta property=\"og:description\" content=\"By Yasufumi Saito Archer Daniels Midland Co., a leading agricultural processer and food ingredient provider, reported Tuesday a mixed result for the fourth quarter. 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