ADM Reports Profit Decline, Plans Job Cuts to Offset Weak Oilseed Margins
The agricultural commodities giant will eliminate up to 700 positions as part of a cost-cutting initiative following its weakest Q4 profit in six years.
- Archer-Daniels-Midland (ADM) reported a 16% decline in adjusted Q4 profit, missing analyst expectations with earnings of $1.14 per share.
- Revenue fell over 6% to $21.5 billion, driven by weak North American oilseed crushing margins and global oversupply of crops like corn and soybeans.
- The company announced plans to cut $500 million to $750 million in costs over the next three to five years, including laying off 600 to 700 employees in 2025.
- ADM's agricultural services and oilseeds division saw a 32% drop in operating profit, with its crushing subsegment hit hardest, down 46% year-over-year.
- CEO Juan Luciano highlighted ongoing challenges, including biofuel policy uncertainty and trade pressures, forecasting flat to lower profits in key divisions for 2025.
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