Archer Daniels Midland Co.'s fiscal second-quarter earnings fell 1.9% amid investment gains and weaker prices, though the company's sales volumes rose and its ethanol business returned to a profit.
The agribusiness giant projected improving demand for several of its key markets in recent quarters, and in November remained optimistic that U.S. farmers could bring in a late harvest despite poor weather.
In addition to handling, transporting and processing a range of foodstuffs, ADM is among the largest U.S. ethanol producers. The company also has expanded its renewable business in Europe, Latin America and Asia.
For its second quarter ended Dec. 31, the company reported a profit of $567 million, or 88 cents a share, down from $578 million, or 90 cents a share, a year earlier. The latest period included $89 million in other income—which includes investment gains and equity in earnings of unconsolidated affiliates—while the prior year included $58 million in other expense.
Revenue decreased 4.6% to $15.91 billion as higher sales volumes and foreign-exchange impacts were more than offset by lower average selling prices because of reduced commodities costs.
Analysts polled by Thomson Reuters most recently forecast earnings of 72 cents a share on revenue of $16.54 billion.
Gross margin fell to 6.6% from 7.3%.
Chairman and Chief Executive Patricia Woertz said, "While our earnings, in total, were comparable to last year's strong second quarter, the market conditions and the mix of earnings were markedly different."