ADM sees captive losses

Archer-Daniels-Midland Company results show losses from its captive even while other business sectors flourish, according to the company.

Announcing its third-quarter earnings per share, the American multinational food and commodities business noted its eighth consecutive quarter of year-over-year adjusted operating profit growth.

“Our team’s great ability to leverage the favourable operating environment, and consistent implementation of our strategic plan, have put ADM on track for a strong fourth quarter culminating in a second consecutive year of record earnings per share,” said chairman and CEO Juan Lucian.

The group reported strong performance in both its agricultural services and oilseeds and nutrition divisions. However, this was somewhat offset by its carbohydrate solutions and by other businesses – particularly its captive.

“[R]esults were substantially lower than the prior-year period, driven primarily by captive insurance underwriting losses, most of which were offset by corresponding recoveries in other business segments,” it said.