ADM says “Market conditions began to turn in the quarter” in announcing “challenging” Q2 results
In Illinois, Archer Daniels Midland Company reported a $128M drop in operating profits for Q2 2016 compared to Q2 2015, the fifth consecutive quarter of decline for the agro-giant.
“After a challenging start to the year, general market conditions began to turn at the end of the second quarter, providing us with improved opportunities for the second half of the year,” said ADM Chairman and CEO Juan Luciano.
Segment operating profit of $680 million as reported for the quarter includes a gain of $48 million in Ag Services related to the receipt of final additional sales proceeds for Gruma; a gain of $63 million in Corn Processing related to the sale of the Brazilian sugar-ethanol business; and a gain in WFSI of $12 million related to purchasing the remaining equity interest in Amazon Flavors. Adjusted segment operating profit was $573 million.
“Weak grain handling margins and merchandising results continued for Ag Services. Results for Corn included strong performance in sweeteners and starches offset by lower ethanol results. Our Oilseeds operations leveraged their flex capacity to crush record volumes of soybeans in the second quarter as global protein demand continues to grow. WFSI saw strong growth in flavors and systems, with operating profit in line with the year-ago quarter.
Category: Fuels
