Wires

UPDATE 1-Grain trader ADM's adjusted profit falls on reduced export demand, ethanol margins

ethanol margins@ (Adds details, CEO quote, background)

Oct 31 (Reuters) - Grain trader Archer Daniels Midland Co said on Thursday its adjusted quarterly profit fell on reduced export demand due to the tit-for-tat Sino-U.S. tariffs and weakness in the ethanol market.

Agricultural commodity traders have been in the cross-hairs of the U.S.-China trade war that has slowed shipments of U.S. soybeans to China

The outbreak of African Swine Fever in China has also hurt import demand for soy, used as livestock feed.

While external conditions for certain businesses may remain fluid and potentially challenging in the near term, the company remains well-positioned for improved results going into the next year, ADM's Chief Executive Juan Luciano said.

Adjusted profit in the company's origination and oilseeds business fell 13% in the third-quarter ended Sept. 30 as corn and other U.S. crops struggled in the export markets.

Earnings from carbohydrate solutions segment, which includes earnings from ethnaol business, fell 36.8% to $182 million in the quarter on continued unfavorable margin environment in the ethanol industry.

Chicago-based ADM, a leading ethanol producer, has also been criticized for allegedly manipulating the price of ethanol to profit from a short position it was holding in the derivatives market.

Adjusted net earnings for the quarter ended Sept.30 fell to $431 million, or 77 cents per share, compared with $523 million, or $92 cents per share, a year earlier.

Revenue rose 5.8% to $16.72 billion. (Reporting by Arundhati Sarkar in Bengaluru and P.J. Huffstutter in Chicago; Editing by Vinay Dwivedi)

Related Tags