Close Menu
Invest Intellect
    Facebook X (Twitter) Instagram
    Invest Intellect
    Facebook X (Twitter) Instagram Pinterest
    • Home
    • Commodities
    • Cryptocurrency
    • Fintech
    • Investments
    • Precious Metal
    • Property
    • Stock Market
    Invest Intellect
    Home»Commodities»US commodities trader ADM slashes 700 jobs globally
    Commodities

    US commodities trader ADM slashes 700 jobs globally

    February 4, 20253 Mins Read


    Unlock the Editor’s Digest for free

    Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.

    US commodities trader Archer Daniels Midland is slashing up to 700 jobs globally as part of a cost-cutting drive amid the growing threat of a worldwide trade war.

    The Chicago-based agricultural commodities group, which has been embroiled in an accounting scandal, also on Tuesday reported a 48 per cent drop in earnings to $1.8bn last year, its second consecutive annual fall in profits.

    It announced the job cuts in an effort to make $500mn to $750mn in savings over the next three to five years as agribusinesses suffer because of the plunge in corn, soyabean and wheat prices.

    “We are executing targeted actions to navigate market volatility and simplify our portfolio, ensuring that ADM remains well-positioned for sustainable growth in the future,” said chief executive Juan Luciano.

    Adjusted earnings per share fell 32 per cent in 2024, coming in at $4.74. ADM attributed the declines to weaker market conditions and geopolitical uncertainty, including the potential impact of trade policy decisions.

    Shares fell 2 per cent in premarket trading following the announcement of the results.

    Corn, soyabean and wheat prices hit four-year lows in 2024, driven by ballooning global stocks that reduced margins for agribusinesses such as ADM and Cargill.

    They typically profit from price swings during market volatility but struggle in calmer times when arbitrage opportunities shrink.

    The so-called ABCD of agricultural commodity traders — ADM, Bunge, Cargill and Louis Dreyfus — had enjoyed soaring profits in the wake of the Covid-19 pandemic and Russia’s full-scale invasion of Ukraine, which disrupted food supply chains.

    In December, Cargill announced it was slashing 5 per cent of its 164,000-strong workforce as part of a sweeping restructuring effort to restore profit margins.

    In January 2024, ADM announced a probe into accounting practices and placed finance chief Vikram Luthar on administrative leave. He has since resigned from the company.

    The investigation revealed the company had overstated historical profits by up to 10 per cent in its nutrition business, touted by Luciano as a means to diversify away from trading and processing and shore up profits.

    Sales from the company’s largest divisions, agricultural services and oilseeds, and carbohydrate solutions, to the nutrition business had not been recorded at market prices, according to ADM, which has since revised earnings back to 2018.

    ADM reported adjusted earnings for the fourth quarter of $1.14 a share, a 16 per cent decrease compared with the same period in 2023, missing Wall Street’s expectations.

    Revenue for 2024 fell 9 per cent to $85.5bn, largely driven by a significant drop in profits from the agricultural services and oilseeds segment, ADM said.

    Looking ahead, it forecast adjusted earnings for 2025 to be in a range of between $4.00 and $4.75 a share, citing weaker market fundamentals and uncertainties in biofuel and trade policy.



    Source link

    Share. Facebook Twitter Pinterest LinkedIn Tumblr Email

    Related Posts

    Trade Tensions: The U.S. and India at an Agricultural Crossroads

    Commodities

    Twisted Metal star teases Anthony Carrigan’s “sexy” take on villain

    Commodities

    Crude oil prices rise despite Trump’s tariffs on trading partners 

    Commodities

    What Happened to Neve Campbell in Twisted Metal Season 2? That Raven Twist Explained

    Commodities

    Enhancing agricultural productivity through research

    Commodities

    Hideo Kojima Says He Won’t Play Metal Gear Solid Delta: Snake Eater, Laughs

    Commodities
    Leave A Reply Cancel Reply

    Top Picks
    Commodities

    Matières premières : Dopées par l’apaisement des tensions commerciales

    Commodities

    CIL’s coking coal production drops by 9% in May

    Property

    Public Property Invest acquiert une propriété norvégienne pour un montant de 131 millions de couronnes norvégiennes -Le 27 janvier 2025 à 16:31

    Editors Picks

    à quelle heure et sur quelle chaîne suivre la rencontre ?

    April 3, 2025

    Crown Laboratories Appoints Satish Kalala Chief Technology Officer

    October 23, 2024

    LA City Council OKs $200K to Further Support LAPD’s Heavy Metal Task Force

    August 6, 2024

    Dow, S&P 500, Nasdaq futures climb ahead of week poised to shake markets

    July 28, 2025
    What's Hot

    Hyprop Investments Ltd – Dividende Intérimaire De 113,43 Cents Par… -Le 13 mars 2025 à 06:43

    March 12, 2025

    Commodities Feed: Trump sets 25% tariffs on steel and aluminium | articles

    February 11, 2025

    Paris Olympics live: Arisa Trew wins skateboarding gold, Boomers lose to Serbia in overtime, Ellie Cole and Melissa Wu miss diving medals

    August 6, 2024
    Our Picks

    Comprehensive Analysis of Changes in the Cryptocurrency Market in Q3 2024: Rise of Bitcoin and Stablecoin Dominance, Surge in Ethereum Staking

    October 17, 2024

    Vizsla Silver interrompt temporairement ses travaux sur le terrain dans le cadre du projet Panuco

    April 4, 2025

    Adam Silver ne veut pas se précipiter

    June 9, 2025
    Weekly Top

    What Do Investors Need to Know About Real-World Assets (RWAs) in Cryptocurrency?

    August 1, 2025

    As digital dollar gains ground, will India’s high-net-worth individuals switch to stablecoins?

    August 1, 2025

    Long-dated euro zone bonds sell off; Trump slaps on tariffs

    August 1, 2025
    Editor's Pick

    Property owner wants Jackson County assessment chaos to end

    August 9, 2024

    Kamoa Copper choisit Deloitte Afrique et Anaplan pour piloter l’innovation financière

    March 14, 2025

    No double-double judo gold for Abe siblings at Paris Olympics. Hifumi wins but Uta has shocking loss

    July 28, 2024
    © 2025 Invest Intellect
    • Contact us
    • Privacy Policy
    • Terms and Conditions

    Type above and press Enter to search. Press Esc to cancel.