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ADM Reports on Q2 of FT 2019

08/01/2019

In a press release dated August 1st Archer-Daniels-Midland Company announced results for the 2nd Quarter of Fiscal 2019 ending June 30th.

The following table summarizes the results for the period compared with the values for the corresponding quarter of the previous fiscal year (Values expressed as $ x 1,000 except EPS)

Quarter Ending

2019

2018

Difference (%)

Sales:

$16,297,000

$17,068,000

-4.5

Gross profit:

$972,000

$1,181,000

-17.2

Operating income:

$370,000

$621,000

-40.4

Pre-tax Income

Net Income

$274,000

$235,000

$652,000

$566,000

-58.0

-58.4

Diluted earnings per share:

$0.42

$1.00

-25.1

Gross Margin (%)

6.0

6.9

-13.0

Operating Margin (%)

2.2

3.6

-38.9

Profit Margin (%)

1.4

3.3

-57.6

Long-term Debt:

$7,701,000

$7,698,000

<0.1

12 Months Trailing:

     

Return on Assets (%)

2.7

   

Return on Equity (%)

8.8

   

Operating Margin (%)

2.8

   

Profit Margin (%)

2.6

   

Total Assets

$42,616,000

$40,833,000

+4.4

Market Capitalization

$23,100,000

   

52-Week Range in Share Price: $37.77 to $ 52.07

Market Close pre-release August 1st 2019 $41.15. After hours post-release $42.09

Forward P/E 11.3 Beta 1.0


In commenting on results Chairman and CEO Juan Luciano stated "We took aggressive action in the face of challenging external conditions, and we are confident that our work over the first half of the year will help deliver a stronger back half," He added "Just as important, our transformative changes are positioning ADM to capitalize on significant market opportunities, and grow earnings and returns in 2020 and beyond.

Luciano concluded "Although the timing is uncertain, we remain confident in the resumption of significant food and agricultural trade flows between the U.S. and China, which will help bolster margins in the U.S. grain export and ethanol industries,"

With reference to African swine fever Luciano opined that the disease might impact global animal protein markets, and eventually support incremental soybean meal demand in key meat-producing regions outside of China.