ST. LOUIS (AP) - Archer Daniels Midland Co. said Tuesday its fourth-quarter profit plunged 61 percent, coming in below expectations, even though revenues soared. The results disappointed analysts who worry ADM's future might only get tougher as grain prices fall from historically high levels.
The Decatur-Ill.-based food processor and ethanol producer said profit for the quarter ended June 30 fell to $372 million, or 58 cents per share.
That's down from $955 million, or $1.47 cents per share, in the year-ago quarter, which included after-tax gains on asset sales of $616 million, or 95 cents per share.
The lackluster results bode poorly for ADM and might cause some analysts to rethink their broader belief that agribusiness profits will grow along with an increasing global demand for grains and meat, Citigroup analyst David Driscoll said in a note.
Chief Executive Patricia Woertz said it could be harder for ADM to see the same kind of revenue growth over the next 12 months as commodity prices begin to fall from their record highs hit in June.
Posted in State-and-regional on Tuesday, August 5, 2008 7:00 pm Updated: 2:22 pm.
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