Archer-Daniels-Midland Company (ADM) reported significant declines in net earnings and comprehensive income for the third quarter and the first nine months of 2024 compared to the same periods in 2023. For the three months ended September 30, 2024, net earnings were $18 million, a sharp decrease from $824 million in the prior year. For the nine months, net earnings totaled $1,233 million, down from $2,918 million in 2023. Comprehensive income for the third quarter was $59 million, down from $645 million, while for the nine months, it fell to $862 million from $2,817 million.

The company's total revenues for the third quarter of 2024 were $19.9 billion, a decrease of $1.8 billion from $21.7 billion in the same quarter of 2023. The Ag Services and Oilseeds segment generated revenues of $15.1 billion, down 8% from $16.5 billion, primarily due to lower sales prices. The Nutrition segment reported revenues of $19.8 billion, a decrease from $21.6 billion, while the Carbohydrate Solutions segment saw revenues drop to $2.9 billion from $3.3 billion.

The decline in profitability was attributed to several factors, including a pre-tax impairment charge of $461 million related to the investment in Wilmar International, lower pricing, and execution margins. The effective tax rate for the third quarter increased to 83.3%, primarily due to this impairment. Total segment operating profit decreased to $1.0 billion from $1.4 billion in the previous year, with significant declines in the Ag Services and Oilseeds segment, which saw operating profit drop to $480 million from $848 million.

ADM's current assets decreased to $26.6 billion as of September 30, 2024, from $29.8 billion at the end of 2023, while total assets fell to $52.2 billion from $54.6 billion. The company reported a significant increase in short-term debt, rising to $1.7 billion from $105 million. Total shareholders' equity also declined to $22.0 billion from $24.1 billion.

Strategically, ADM completed several acquisitions during the nine months ended September 30, 2024, including Revela Foods for $649 million and Fuerst Day Lawson Ltd. for $250 million, aimed at enhancing its capabilities in the Nutrition segment. The company also engaged in a substantial share repurchase program, repurchasing $2.3 billion worth of shares in the nine months, compared to $1.1 billion in the same period in 2023.

Overall, ADM's financial performance reflects challenges in market conditions, particularly in pricing and margins, alongside strategic investments aimed at long-term growth.