Flooding and severe winter weather in the U.S. Midwest will reduce Archer Daniels Midland Co’s first-quarter operating profit by $50 million to $60 million, the U.S. grains trader said on Monday.
Reuters reports that for ADM, the floods are affecting two crucial business units: Origination, which buys, stores and transports grains; and Carbohydrate Solutions, which mills corn and wheat, the company said.
The $50 million to $60 million impact on pre-tax operating profit will be roughly equal between the segments, with minor impacts to other units, ADM said.
