Archer Daniels Midland's Profit, Sales Fall More Than Expected

Archer Daniels Midland Co.'s stock was indicated about 2% lower in premarket trade Tuesday, after the agricultural services company reported first-quarter profit and sales that fell more than expected. Earnings for the latest quarter declined to $230 million, or 39 cents a share, from $493 million, or 77 cents a share, in the same period a year ago. Excluding non-recurring items, adjusted earnings per share came in at 42 cents, below the FactSet consensus of 45 cents. Revenue fell to $14.38 billion from $17.51 billion, well below the FactSet consensus of $16.85 billion, as agricultural services, oilseeds processing and corn processing revenue all declined more than expected. "Low U.S. export volumes and weak margins continued, and in the quarter, poor results from the global trade desk impacted results for [agricultural] services," said Chief Executive Juan Luciano. The stock has run up 9.8% year to date through Monday, while the S&P 500 has gained 1.8%.