ADM Q2 2024 Nutrition Unit Operating Profit Forecast To Be Lower Versus Prior Year; FY24 Expected To Be Higher; Q2 2024 AG Services And Oilseeds Unit Operating Profit Forecast To Be "Significantly Lower" Versus Prior Year; FY24 Expected To Be Lower; ADM Nutrition Unit Faced Headwinds In Q1 2024 From Specialty Ingredients Business, Led To "Significant Decline In Operating Profit"
Portfolio Pulse from Benzinga Newsdesk
ADM forecasts a lower Q2 2024 operating profit for its Nutrition Unit compared to the previous year, but expects an increase for the full year. The AG Services and Oilseeds Unit is projected to have a 'significantly lower' operating profit in Q2 2024 and a decrease for FY24. The decline in the Nutrition Unit's Q1 2024 operating profit was attributed to headwinds in the Specialty Ingredients Business.
April 30, 2024 | 3:09 pm
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ADM anticipates a decrease in Q2 2024 operating profit for its Nutrition Unit but expects an overall increase for FY24. The AG Services and Oilseeds Unit is projected to face a significant decline in Q2 2024, with a lower profit forecast for the full year.
The forecasted decrease in operating profit for both the Nutrition Unit in Q2 and the AG Services and Oilseeds Unit for Q2 and FY24 suggests potential negative short-term market reactions. However, the expected annual increase for the Nutrition Unit might mitigate some concerns. The specific mention of headwinds in the Specialty Ingredients Business as a cause for the decline in the Nutrition Unit's operating profit highlights a sector-specific issue that could influence investor sentiment.
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IMPORTANCE 90
RELEVANCE 100