- freeimages.comADM warned over prospects for ethanol production margins, even though it credited biofuel with helping its profits.
Archer Daniels Midland (ADM) reported higher quarterly earnings, but revenue fell short of expectations.
ADM reported net earnings of $701 million, or $1.08 per share, in the quarter ended December 31, up from $374 million, or 56 cents a share, a year earlier. Revenue fell to $20.89 billion from $24.14 billion, short of the consensus expectation of $23.85 billion.
The company said it would raise quarterly cash dividends by 17 percent in 2015 to 28 cents per common share and was targeting share repurchases of between $1.5 billion and $2 billion. It earmarked 2015 capital expenditures of $1.1 billion to $1.3 billion.
ADM warned over prospects for ethanol production margins, even though it credited its operations in biofuel with helping its profits.
"Margins in this industry should remain challenged until supplies are better aligned with demand," said ADM’s CEO Juan Luicano.
In other ADM news, the company announced that it has reached an agreement to sell to Glencore P.L.C. a 50 percent stake in its export terminal in Barcarena, in northern Brazil. The ADM-Glencore joint venture that will own and operate the facility following the transaction also plans to quadruple the terminal’s capacity from 1.5 million metric tons to 6 million metric tons.