Archer Daniels Midland Company (ADM) reported results for the fourth quarter ended December 31, 2015.
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The company reported adjusted earnings per share of $0.61, down from $1 in the same period last year. Adjusted segment operating profit was $599 million, down 47 percent from $1,128 million in the year-ago period.
Net earnings for the quarter were $718 million, or $1.19 per share, and segment operating profit was $900 million. Global dynamics reduced margins across the U.S. agricultural export sector, the U.S. ethanol industry and in the soybean crushing industry worldwide.
Adjusted EPS of $0.61 excludes approximately $0.70 of gains on sale or revaluation of assets, $0.24 of charges related to asset impairments and restructurings, and other net credits of $0.12.
Agricultural Services decreased $207 million compared to a very strong quarter last year amid lower North American export volumes and margins.
Corn Processing decreased $155 million as U.S. ethanol industry margins were lower due to pricing pressures brought on from declining crude oil prices and high industry production levels.
Oilseeds Processing results were lower than the very strong year-ago period, as global soybean crush margins declined significantly during the quarter.
Wild Flavors and Specialty Ingredients earned $47 million, with WILD Flavors achieving its first-year accretion target of $0.10 per share.
Trailing four-quarter-average adjusted ROIC was 7.3 percent, 70 basis points above annual WACC of 6.6 percent.
During 2015, the company returned $2.7 billion to shareholders through dividends and the repurchase of 43 million shares.
Archer Daniels Midland has reached an agreement to purchase a controlling stake in Harvest Innovations, an industry leader in minimally processed, expeller-pressed soy proteins, oils and gluten-free ingredients.
Harvest Innovations uses expeller pressing to turn grains, legumes and oilseeds into minimally-processed, non-GMO, organic, gluten-free ingredients.
Products range from non-GMO soy chips, expeller-pressed soy flour and textured vegetable protein, to the industry’s only organic soy crisps, to gluten-free flours and pastas. ■