CHICAGO (AP) — Archer Daniels Midland Co. said Tuesday that its second-quarter profit fell 26 percent from the year before, hurt by weakness in its ethanol business.
The Chicago company makes animal feed, produces ethanol for fuel and makes sweeteners and other food ingredients. ADM said high inventories of ethanol forced it to decrease production.
ADM reported net income of $284 million, or 48 cents per share, in the quarter ending June 30, compared with $386 million, or 62 cents per share, in the same quarter a year later.
Earnings, adjusted for non-recurring gains, were 41 cents per share, below what analyst's expected. The average estimate of three analysts surveyed by Zacks Investment Research was for earnings of 44 cents per share.
The Chicago-based company said revenue fell 9 percent to $15.63 billion in the period.
Shares of ADM dropped $1.22, or 2.8 percent, to $43.02 morning trading Tuesday. Its shares are down more than 9 percent from a year ago.
Elements of this story were generated by Automated Insights (http://automatedinsights.com/ap) using data from Zacks Investment Research. Access a Zacks stock report on ADM at http://www.zacks.com/ap/ADM
Keywords: Archer Daniels Midland, Earnings Report