DECATUR, ILLINOIS, U.S. — Archer Daniels Midland Company (ADM) reported on Oct. 29 a drop in adjusted earnings for the third quarter to 46¢ per share, compared to 53¢ per share in the same quarter a year ago. 

Net earnings for the quarter were $476 million, or 72¢ per share, up from $182 million, or 28¢ per share, in the same period a year ago. Revenue totaled $21.39 billion, down from $21.81 billion a year ago.

Segment operating profit was $606 million, down 6% when excluding an impairment charge from the year-ago quarter. 
 
“The team delivered solid operating results overall, despite the lingering effects of the 2012 U.S. drought,” said ADM Chairman and Chief Executive Officer Patricia Woertz. “Oilseeds performed well, particularly in North and South America; Corn benefitted from improved ethanol margins; and Ag Services managed effectively through the transition to new crop. 
 
“Looking forward, as record global crop supplies refill the pipeline, we will employ our efficient network to meet strong demand from customers around the world.” 
 
Oilseeds Processing profit increased $25 million to $361 million as North American operations effectively managed through the transition between old and new crop. 

Crushing and origination operating profit was $242 million, down $14 million from the year-ago quarter. Despite tight crop supplies, ADM’s North America oilseed crushing operations had good capacity utilization amid good foreign and domestic protein meal demand. In South America, ADM exported large volumes at the peak of the inverse market, capturing strong margins. European crushing results declined due to limited soybean availability. 

Refining, packaging, biodiesel and other generated a profit of $85 million for the quarter, up $57 million on improved biodiesel results and record profits from protein specialties. 

Oilseeds results in Asia for the quarter were up $6 million from the same period last year, principally reflecting ADM’s share of the improved results from Wilmar International Limited. 

Corn Processing profit increased $91 million to $159 million on improved results from ethanol. 

Corn hedge effects in the third quarter were a charge of $11 million, versus a charge of $31 million in the year-ago period. 
 
Excluding the impact of corn hedge ineffectiveness, sweeteners and starches results declined by $26 million, with overall demand and margins remaining solid. 
 
Excluding the impact of corn hedge ineffectiveness, bioproducts results increased $97 million to $71 million. Overall ethanol margins remained profitable though volatile. 

Agricultural Services profit declined $152 million when adjusting for impairment charges in the year-ago quarter. Current-period performance was impacted by low U.S. exports and weak international merchandising results. 

Merchandising and handling earnings declined $104 million to $4 million, as low U.S. crop supplies reduced export volumes and as results from international merchandising were weak. 
 
Transportation results increased $2 million to $21 million on good northbound barge freight business. 
 
Milling and other results remained solid as the milling business continued to perform well.