ADM profit drops on charges but improved ethanol margins support results

Archer Daniels Midland (ADM) says its unadjusted Q4 earnings fell 27% Y/Y largely due to charges relating to its failed acquisition of Australian grain handler GrainCorp., but adjusted EPS of $0.95 beat estimates.

Corn processing profit more than doubled to $223M, including a $228M increase in the bioproducts division, which includes ethanol processing; however, ADM faces challenges ahead as the U.S. government considers a reduced ethanol blending mandate that could hit ADM's ethanol business.

ADM says it is ahead of schedule in its cost savings efforts, and continues to see strong global demand for its products and large crop supplies.

No guidance was offered.

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