Animal Nutrition segment up substantially
ADM reported net earnings of US$504 million for the quarter ended December 31, 2019.
“Our team delivered a solid fourth quarter, consistent with our expectations three months ago,” said Chairman and CEO Juan Luciano. “At the end of 2019, we can look back on a full year in which the team did a great job managing through some difficult external conditions while continuing to deliver innovative solutions for our customers.
“Looking ahead, we’re excited about the opportunities we see in 2020 and beyond. Our industry-leading array of products and solutions from nature is helping us give our customers an edge in meeting global demand in fast-growing consumer trend areas — from alternative proteins, to foods and beverages that enhance health, to unique products for pets. We expect market conditions to improve as the year progresses, particularly as impacts from the U.S.-China Phase 1 trade deal take hold. More importantly, another year of expected 20-plus percent growth in Nutrition profitability, combined with our work to improve business performance, advance Readiness, and harvest our growth investments, give us confidence in strong results in 2020 and the years to come.”
Ag Services & Oilseeds results were higher year over year, and included approximately $270 million net operating profit impact from the passage of the biodiesel tax credit (BTC) for 2018 and 2019.
Ag Services results were slightly lower year over year. In North America, a delayed U.S. harvest contributed to lower export volumes and correspondingly lower margins, partially offset by South America results, which benefited from improved margins driven by good export demand and farmer selling.
In Crushing, margins overall remained solid, though substantially lower than the near-record levels last year caused by the short 2018 Argentine soybean crop. Negative timing impacts this quarter versus positive timing impacts in the prior-year quarter also contributed to lower year-over-year results.
Refined Products and Other results were substantially higher. The impact of the passage of the retroactive biodiesel tax credit for 2018 and 2019 was a major driver. Absent the BTC, results were strong and higher year over year, as the business benefited from strong global demand for both biodiesel and food oils. The Algar Agro acquisition in Brazil, which was completed in December 2018, also contributed to results.
Wilmar results were slightly higher year over year.
Animal Nutrition was up substantially versus the prior-year period. Neovia continued to contribute positively to results, partially offset by continued losses in lysine due to a weak global pricing environment.
