Shares of Archer Daniels Midland (NYSE:ADM) got hammered Tuesday, dropping over 4 percent (including after hours trading), as higher corn prices weighed on the company's performance in the last quarter.
Other notable factors having a significant impact were miniscule margins for oilseed processing, as well as the changing global supply market for grains.
For the latest quarter, net income plummeted to $80 million, or 12 cents a share, a dramatic fall of 89 percent from last year in the same quarter, where the company generated a net income of $732 million, or $1.14 a share.
Taking into account one-off events, earnings came in at 51 cents a share, down by 58 percent over last year.
Profits for its agricultural services business were under heavy pressure for the quarter, dropping 63 percent, with the company citing “poor international merchandising results and lower US export volumes.” That particular unit acquires grain from exporters and sells it to importers.
Recognizing the ongoing challenges, early in January 2012, Archers Daniels Midland said it's going to lay off 1,000 workers.
ADM closed Tuesday at $28.63, falling $1.08, or 3.64 percent.
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