Archer Daniels Midland’s earnings for the first quarter fell short of analysts’ estimates by a wide margin.
The food processing & commodities trading company reported earnings of 41 cents a share for the quarter, compared to analysts’ expectation of 60 cents (based on FactSet data). Earnings were also lower from the year-ago quarter’s 70 cents.
Revenue of $15.3 billion came in lower compared to analysts’ estimates of $15.6 billion.
Chairman and CEO Juan Luciano cited adverse weather conditions in North America and ethanol industry issues as major headwinds to the company’s lower-than-expected performance in the first quarter.
However, Luciano is hopeful that business would improve in the second half of the year would due to the company’s business strategy, an expected resolution of the U.S.-China trade tensions and an anticipated boost in soybean meal demand driven by African Swine Fever. Also, the company is expected to adapt its corn wet mill in Marshall, Minnesota,for producing higher volumes of food and industrial-grade starches.