Agricultural giant Archer Daniels Midland Company (NYSE:ADM) reporated earnings of a paltry $8 million (EPS of $0.01) on sales of $14.8 billion for its 2009 third quarter which ended on March 31st. Analysts had been expecting EPS of $0.49 on revenues of $16.94 billion.
The earnings hit came from a $132 million non-cash after-tax charge on currency losses sustained by an equity investor in ADM and a $97 million income tax charge related to an ADM investment. Okay, so before the unusual items earnings would have been $232 million. That’s still 36% lower than earnings for the same period last year. And revenue fell 21% year-over-year.
Weak demand in North America reduced operating profit in the company’s oilseed processing segment, corn processing fell “primarily due to continued challenges in the ethanol industry,” and the agricultural services segment profit dropped as a result of lower demand for increased supplies. The company’s nine-months earnings are up 10%, but that includes the last two quarters of calendar year 2008, when ag prices were higher.
ADM shares are down about 6.5% in pre-market trading this morning at $24.45. The stock’s 52-week range is $13.53-$45.00.
Paul Ausick
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