ADM reports first-quarter profit beat
May 6 (Reuters) - Grain trader Archer-Daniels-Midland (ADM.N), opens new tab on Tuesday beat Wall Street expectations for first-quarter profit, helped by robust performance in its nutrition segment and lower costs.
The upbeat results come amid a cost-cutting and consolidation push by the company. ADM in February said it planned to cut costs by $500 million to $750 million over the next three to five years and has been slashing jobs and downsizing operations since then.
The company has seen its profit fall in recent quarters as prices of certain crops such as corn and soybean hit multi-year lows amid a global supply glut.
It is also reeling from an accounting scandal last year that drew federal scrutiny and sent its stock price tumbling.
Profit from Ag Services & Oilseeds, its largest segment, slumped 52% in the reported quarter, while the nutrition segment posted a 13% rise in profit.
ADM reaffirmed its full-year adjusted earnings forecast of $4 to $4.75 per share, but expects it to come at the lower end of the range.
The Chicago-based company posted an adjusted profit of 70 cents per share for the three months ended March 31, compared with analysts' average estimate of 67 cents, according to data compiled by LSEG.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Reuters
42 minutes ago
- Reuters
Raging bulls: Funds pad historic longs in CME livestock
NAPERVILLE, Illinois, June 15 (Reuters) - Speculators have held unusually bullish views in U.S. cattle futures since late last year, which was perfect timing as the domestic herd hit a 74-year low at the beginning of 2025. Since then, U.S. beef prices have hit all-time highs, yet consumers have not relinquished their taste for the premium protein, and cattle futures have continued their climb. In the week ended June 10, money managers boosted their net long in CME live cattle futures and options to a 10-week high of 137,836 contracts. That is a record for the date but comparable with 2017 and 2014, both of which featured a steady easing of bullish bets from here. Funds' net long in CME feeder cattle hit a record high as of June 10, and they also extended bullish bets in CME lean hog futures and options for a ninth consecutive week. That brought their hog net long to 118,218 contracts, easily the highest ever for this time of year. Spot live cattle futures are up about 16% so far this year and hogs have jumped by a third. Both inked fresh contract highs within the last week. Over in grains and oilseeds, speculators were net buyers in the week ended June 10 of everything but corn and soybean oil, the latter perhaps regrettable given Friday's events. Money managers were net sellers of CBOT soybean oil futures and options for a fourth consecutive week through June 10, leaving them with a modest net long of 24,768 contracts. However, soyoil futures surged the daily limit on Friday, reaching one-month highs, as the Trump administration proposed higher-than-expected requirements for U.S. biofuel blending in 2026 and 2027. This could boost the demand for domestic soybean oil, particularly as foreign feedstock including used cooking oil from China would be discouraged. Despite the optimism, there was no word yet regarding small refinery exemptions, which could effectively reduce demand. The biofuel news lifted soybeans, which on Friday notched their highest closing price in a month at $10.69-3/4 per bushel. Money managers had increased their near-flat soybean position through June 10 to a net long of 25,639 futures and options contracts. Despite global soybean supplies set to hit record levels this year, speculators have maintained a mildly optimistic stance in recent weeks. U.S. crop prospects are relatively modest and depend on a record yield and a certain acreage, the latter of which could be at risk in favor of corn acres. The big U.S. corn crop expectations have turned funds into bears, as they have been net sellers in 15 of the last 18 weeks. Through June 10, they lifted their net short in CBOT corn futures and options to 164,020 contracts, up about 10,000 on the week. This increases investors' risk of having to abruptly cover corn shorts should U.S. weather turn unfavorable, but current forecasts do not suggest this is very likely in the near-term. Supportive spring weather boosted U.S. winter wheat conditions to the highest early-June levels in six years, and funds have noticed. Last month they established an all-time net short in Kansas City wheat futures and options, well past the previous record. Although they have been net buyers of K.C. wheat in the latest four weeks, their net short remains extremely heavy. Funds also bought Chicago wheat in the latest four weeks, cutting their net short to 94,011 futures and options contracts from 126,895 over that period. CBOT wheat futures surged more than 3% on Friday, motivated by strength in both the soy complex and crude oil. Crude contracts on Friday posted their largest intraday moves since 2022 after Israel conducted strikes on Iran, and both sides were still trading blows as of Sunday. Aside from the fresh Middle East conflict and any further U.S. biofuel news, grain traders must continue to monitor how U.S. weather is shaping up for the rest of June. Grain and oilseed futures have a history of crashing whenever nonthreatening weather is on tap for the U.S. Corn Belt into early July, when crops are setting up for the critical pollination phase. Karen Braun is a market analyst for Reuters. Views expressed above are her own. Enjoying this column? Check out Reuters Open Interest (ROI), opens new tab, your essential new source for global financial commentary. ROI delivers thought-provoking, data-driven analysis of everything from swap rates to soybeans. Markets are moving faster than ever. ROI, opens new tab can help you keep up. Follow ROI on LinkedIn, opens new tab and X., opens new tab
Sky News
an hour ago
- Sky News
Leonard Lauder: Estee Lauder's son, who built make-up company into global brand, dies
Estee Lauder's son - a "cosmetics industry icon" who built the make-up brand into a global powerhouse - has died aged 92. Leonard Lauder joined his parents' business in 1958 following a stint in the US Navy, working his way up the ranks to become president and chief executive. "For more than six decades, Mr Lauder was a visionary and an innovator - helping transform the business," the company said in a statement. The entrepreneur had a key role in helping Estee Lauder shift from selling a small number of products in US stores to owning a plethora of brands internationally. As well as launching the likes of Clinique and Aramis, Mr Lauder was described as a canny dealmaker involved in acquiring Bobbi Brown and Jo Malone London. His son William, who remains involved in the family business, said: "Throughout his life, my father worked tirelessly to build and transform the beauty industry - pioneering many of the innovations, trends and best practices that are foundational to the industry today." William Lauder, who now chairs the board of directors, added: "His impact was enormous. He believed that employees were the heart and soul of our company, and they adored him and moments spent with him." Leonard Lauder created the company's first research and development laboratory - and was the "driving force" behind its expansion into Europe and Asia. Born in New York City in 1933, estimates from Forbes suggest his net worth peaked at $25.5bn (£18.8bn) in 2021. He served as Estee Lauder's chief executive from 1982 to 1999 and chairman from 1995 to 2009, serving as chairman emeritus until his death. Stephane de la Faverie, the brand's current CEO, said: "Leonard Lauder was beloved by many and will be missed tremendously. "To our employees at The Estee Lauder Companies, he was an inspiration and a champion. To the industry, he was an icon and pioneer, earning respect worldwide. "His energy and vision helped shape our company and will continue to do so for generations to come." Leonard Lauder was married to Evelyn - a fellow executive who founded the Breast Cancer Research Foundation - from 1959 until her death in 2011. He is survived by his second wife Judy, a renowned photographer, as well as his two sons, five grandchildren and two great-grandchildren. "Mr Lauder considered himself lucky in love and believed that lightning really could strike twice," a statement added.
Reuters
2 hours ago
- Reuters
BetMGM boosts annual forecast on iGaming, online growth
June 16 (Reuters) - Ladbrokes owner Entain (ENT.L), opens new tab said on Monday BetMGM, its U.S. sports-betting joint venture with MGM Resorts (MGM.N), opens new tab, raised its annual revenue and core earnings forecast, driven by strong growth in its iGaming and online sports divisions. BetMGM, which has been growing its online presence and capitalising on a booming e-betting market, now expects revenue of at least $2.6 billion and core earnings of at least $100 million in fiscal 2025, Entain said. It had earlier forecast revenue of between $2.4 billion and $2.5 billion, and positive earnings before interest, taxes, depreciation, and amortization (EBITDA).
