ADM: Ethanol earnings down in fourth quarter 2018

By Erin Voegele | February 05, 2019

On Feb. 5, Archer Daniels Midland Co. released fourth quarter 2018 financial results, reporting ethanol margins and volumes were down during the period in a continued weak industry pricing and margin environment.

The company reported $2 million in segment operating profit for its bioproducts segment, which includes ethanol, down from $60 million during the same quarter of 2017. For the full year, ADM’s bioproducts segment reported $51 million in segment operating profit, down from $148 million in 2017.

During an investor call, Ray Young, executive vice president and chief financial officer at ADM, indicated that continued high industry run rates and inventories for ethanol contributed to the segment’s fourth quarter performance.

Overall, ADM reported net earnings of $315 for the fourth quarter, down from $788 million during the same period of last year. For the full year, Net earnings reached $1.81 billion, up from $1.595 billion during 2017.