Hutchinson, Kan. — In a quarterly earnings session that has been positive so far for companies with ties to Hutchinson, there was not-so-good news for ADM after it released earnings on Tuesday.

The grain company, which employs about 60 people at its five elevators in Hutchinson, saw earnings tumble 44 percent on severance and restructuring costs and weaker trading profits due to a global grain glut, which sent shares dropping as much as 6.7 percent on Tuesday. Revenue also fell by 6.3 percent to $14.83 billion, missing expectations for $16 billion, according to Thomson Reuters I/B/E/S.

Profit in ADM’s agricultural services unit, its biggest, fell more than half to $87 million in the third quarter as large global supplies slowed U.S. exports and low crop prices discouraged farmers from selling crops.

ADM handled 20 percent less grain than executives expected and average margins in the United States were 50 percent below expectations, Chief Financial Officer Ray Young told analysts. Net profit attributable to ADM slid to $192 million, or 34 cents a share, in the quarter from $341 million, or 58 cents a share, a year earlier.

Up next for companies with ties to the area is Siemens/Gamesa, who will releases 4Q earnings Nov. 6.

 

Figures supplied by Reuters News Agency