Ag Manufacturers and Traders Report Tough Profit Outlooks

Several of the biggest agricultural companies in America are feeling a pinch to their bottom lines.  Reuters says Archer-Daniels-Midland posted its lowest fourth-quarter profits in six years, thanks to weak oilseed crush margins and uncertainty over U.S. biofuel policy.  Chicago-based ADM said it’s going to cut costs by $500 million to $750 million during the next three to five years, including cutting 700 jobs to weather the downturn in the market.

Bunge Global missed industry expectations for fourth-quarter profits after a global glut in crop prices took a hit on the grain traders’ margins.  The agribusiness segment represents over 80% of the company’s revenue and saw its adjusted core earnings decline to $364 million in the fourth quarter from $639 million a year earlier.

In addition, machinery manufacturer CNH Industrial forecast its full-year profit below Wall Street estimates because of low demand in 2025.

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