Archer Daniels Midland has reported first quarter net earnings of $267 million US April 29, or 40 cents per share.
That is down from $269 million, or 41 cents per share, during the same quarter last year.
First quarter revenues were down slightly at $20 billion compared to nearly $21 billion last year.
“Our business delivered mixed results in the first quarter,” said ADM chief executive officer Patricia Wurtz.
“Our ag services business again generated weak results due to a low margin environment as well as logistics and weather challenges in the U.S.”
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Weather issues limited ADM’s returns in grain handling and merchandising.
Cold weather hurt U.S. grain handling volumes, affecting rail transportation and barge movement.
Ethanol margins were improved, and solid results in the oilseed business were driven by good margins and volumes in North and South America, the company said.
Operating profits from corn processing in the first quarter were up $64 million to $261 million.
ADM said it is moving ahead with plans to buy the remaining 20 percent stake in Toepfer International.
The company is also selling its chocolate business and has signed an agreement to sell its fertilizer assets in Paraguay and Brazil to Mosaic for $350 million.
It gave no indication that its efforts to buy Australian agribusiness Graincorp are back on the table.
Graincorp is in the process of seeking a new CEO to replace outgoing CEO Alison Watkins. ADM said discussions with Graincorp could resume after management changes at the Australian grain company have been finalized.
The company said it is confident it has good investment prospects going forward.
“We do have tangible prospects out there that we’re looking at,” said chief financial officer Ray Young.
“I think we will be able to announce some of those as we … move through the calendar year.”
ADM’s western Canadian assets include mills in Calgary, Medicine Hat and Winnipeg, a canola crushing plant in Lloydminster, Alta., and canola collection facilities in Watson, Sask., and Carberry, Man.
