Rising Corn Prices Weigh on ADM
Shares of the ethanol producer sagged Tuesday after it reported lower-than expected profit growth
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Agricultural processor Archer-Daniels-Midland ADM has gotten a lot of mileage from the ethanol boom recent months. But the Decatur, Ill. company on May 1 announced disappointing profits, as the cost of corn rose and its agricultural services business suffered.
To be sure, the company's net earnings still increased 4% year over year to $363 million during the three months ended March 31. "We performed well in a challenging quarter," said ADM CEO Patricia A. Woertz said in a press release May 1.