Archer Daniels Midland Company (ADM) has reported a 40.95 percent plunge in profit for the quarter ended Dec. 31, 2016. The company has earned $424 million, or $0.73 a share in the quarter, compared with $718 million, or $1.19 a share for the same period last year. On an adjusted basis, earnings per share were at $0.75 for the quarter compared with $0.65 in the same period last year.
Revenue during the quarter went up marginally by 0.34 percent to $16,501 million from $16,445 million in the previous year period. Gross margin for the quarter expanded 96 basis points over the previous year period to 6.22 percent. Total expenses were 96.75 percent of quarterly revenues, down from 98.35 percent for the same period last year. This has led to an improvement of 160 basis points in operating margin to 3.25 percent.
Operating income for the quarter was $537 million, compared with $272 million in the previous year period.
"We capitalized on an improved environment, delivering stronger fourth quarter performance after working through difficult market conditions earlier in the year," said ADM chairman and chief executive officer Juan Luciano. "Ag Services saw strong results in North America and weak results from the global trade desk. The Corn business delivered a good quarter, led by sweeteners and starches, and saw solid results from bioproducts. Oilseeds results were comparable to last year despite lower global crush margins. In WFSI, WILD Flavors continued to deliver earnings growth, while some of our specialty ingredients businesses faced challenges, which we are addressing.
Operating cash flow drops significantly
Archer Daniels Midland Company has generated cash of $1,475 million from operating activities during the year, down 40.28 percent or $995 million, when compared with the last year.
The company has spent $1,211 million cash to meet investing activities during the year as against cash outgo of $21 million in the last year.
The company has spent $579 million cash to carry out financing activities during the year as against cash outgo of $2,649 million in the last year period.
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