Archer Daniels Midland (ADM), a global leader in human and animal nutrition, today reported its financial results for the third quarter of 2024, revealing a significant downturn in earnings amid challenging market conditions.
The company's net earnings for Q3 2024 stood at $18 million, a stark contrast to the previous year. This decline was largely attributed to a non-cash impairment charge of $461 million related to ADM's equity investment in Wilmar. Adjusted earnings per share came in at $1.09, down 33% compared to the same period last year.
ADM's total segment operating profit for the quarter was $1,037 million, representing a 28% decrease year-over-year. The Ag Services & Oilseeds segment was particularly hard hit, with operating profit down 43% to $480 million, primarily due to lower margins in South American operations and challenges in the crushing and refined products subsegments.
Despite the downturn, ADM's Chair of the Board and CEO Juan Luciano remained optimistic, stating, "While we foresee softer market conditions into next year, we are taking actions to improve performance and drive value creation." The company is focusing on enhancing productivity and operational excellence while maintaining a disciplined approach to capital allocation.
Looking ahead, ADM affirmed its full-year 2024 adjusted earnings per share guidance in the range of $4.50 to $5.00. The company anticipates continued challenges in the fourth quarter, particularly in its Ag Services & Oilseeds segment, while expecting improvements in its Nutrition segment compared to the prior year.
As ADM navigates these market headwinds, investors and industry observers will be closely watching the company's strategic moves to address the challenges and capitalize on potential opportunities in the evolving global nutrition landscape.
