Archer Daniels Profit, Sales Fall Below Expectations

Archer Daniels Midland Co. reported Tuesday a second-quarter profit that fell to $386 million, or 62 cents a share, from $533 million, or 81 cents a share, in the same period a year ago. Excluding non-recurring items, such as gains on asset sales and acquisition-related charges, adjusted earnings per share came in at 60 cents, below the FactSet consensus of 67 cents. Revenue declined to $17.19 billion from $21.49 billion, below the FactSet consensus of $20.45 billion, as revenue from agricultural services, oilseed processing and corn processing all fell more than expected. "Ag services earnings were impacted by lower margins and volumes of North American exports, as they were less competitive globally, and by a sharp upward move in commodity prices at the end of the quarter," said Chief Executive Juan Luciano. The stock, which was still inactive in premarket trade, has lost 5.2% over the past three months, while the S&P 500 has slipped 0.8%.