Severe U.S. weather likely dented earnings for large grain companies including A...
CHICAGO - Severe U.S. weather likely dented earnings for large grain companies including Archer Daniels Midland Co and Bunge Ltd for a second straight quarter, adding to headwinds from a still-unresolved U.S.-China trade war, analysts and economists said.
The weather woes are heaping more pain on the battered U.S. agricultural sector already hard-hit by a years-long crop supply glut and the U.S.-China trade war now entering its second year. The tariffs China imposed on soybean exports from the United States in retaliation for U.S. duties on Chinese goods curbed shipments of the most valuable U.S. export crop.
The U.S. corn crop was more affected by floods than soybeans, because soy can be planted later in the season.The first of the companies scheduled to report is privately held Cargill, which announces fiscal fourth-quarter earnings on Thursday. Cargill is expected to report weaker results compared with the very strong earnings of the year-ago quarter, due partly to expected lower profit in its origination and processing unit, said Bill Densmore, senior director of corporate ratings at Fitch Ratings.
ADM cited poor U.S. weather for a nearly $60 million drop in operating profit in its first quarter and warned in April that lingering weather impacts would cut second-quarter earnings by $20 million to $30 million. Some analysts expect ADM to post as large a hit to second-quarter earnings as in the first quarter as adverse weather stretched through the spring season.
México Últimas Noticias, México Titulares
Similar News:También puedes leer noticias similares a ésta que hemos recopilado de otras fuentes de noticias.
At least 300 people have been evacuated due to severe flooding in NebraskaAt least 300 people have been evacuated in Kearney, Nebraska due to severe flooding, according to a city official
Leer más »
Severe weather moves into Gulf Coast: 'We all need to take this very, very seriously''No one should take this storm lightly,' 'Louisiana Gov. John Bel Edwards said.
Leer más »
https://people.com/Get the latest news about celebrities, royals, music, TV, and real people. Find exclusive content, including photos and videos, on PEOPLE.com.
Leer más »
Hurricane watch threatens Gulf Coast: 'We all need to take this very, very seriously'JUST IN: Hurricane Watches issued along the southern coast of Louisiana as severe weather moves in.
Leer más »
A new poll shows Trump has a major shot at being reelected in 2020There's still over a year until Election Day and a lot could change in the coming months, but Trump's re-election campaign is in a solid position.
Leer más »