MW Archer Daniels Midland laying off up to 700 in face of uncertain profit
By Steve Gelsi
Ethanol maker and food processor says 2025 guidance reflects 'weaker' market view on biofuel, trade policy turmoil
Archer Daniels Midland Co. said its fourth-quarter profit fell 9% to $667 million, as it issued a cautious outlook for 2025 and said it would cut up to 700 jobs to reduce expenses.
Archer Daniels Midland $(ADM)$ said it expects to generate adjusted 2025 earnings of $4 to $4.75 a share to reflect "weaker market fundamentals and on-going biofuel and trade policy uncertainty."
The midpoint of the estimated range would fall well below the FactSet consensus estimate of $4.71 a share.
"Going into 2025, we are focused on improving our operational performance, accelerating costs savings, and simplifying our portfolio," the company said.
In a move to save $500 million to $750 million, Archer Daniels Midland said it would cut 600 to 700 jobs across the globe.
Archer Daniels Midland earned $1.17 a share in the fourth quarter, with an adjusted profit of $1.14 a share. The company's result matched the Wall Street analyst estimate, according to FactSet data.
Fourth-quarter revenue fell to $21.5 billion from $22.98 billion in the year-ago quarter, and below the analyst estimate of $22.77 billion.
Archer Daniels Midland's stock fell 1.8% in premarket trading on Tuesday.
Prior to Tuesday's trading, ADM's stock had dipped by 1% in 2025, while the S&P 500 SPX has risen 1.9%.
-Steve Gelsi
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February 04, 2025 08:04 ET (13:04 GMT)
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