Archer Daniels Midland Co.’s third-quarter profit plunged as the agribusiness giant grapples with a glut in the commodities market and a strong U.S. dollar that has cut into international sales.
The Chicago company’s profit fell 66 percent to $252 million, or 41 cents per share. Earnings, adjusted for non-recurring costs, came to 60 cents per share.
That’s well below the per-share earnings of 71 cents that Wall Street had expected, according to a poll by Zacks Investment Research.
Revenue fell 8.5 percent to $16.57 billion in the period. The company said North American exports suffered because of a stronger U.S. dollar and a surplus of crop supplies, particularly from South America. Meanwhile, corn processing revenue fell as ethanol inventory levels remained high, cutting into margins.
ADM shares have dropped 11 percent since the beginning of the year, while the Standard & Poor’s 500 index has risen 2 percent. The stock has decreased 1.5 percent in the last 12 months.