Archer Daniels sees negative impact of $50M-$60M in Q1 from extreme weather
In a regulatory filing, Archer Daniels said "Extreme winter weather has affected our first quarter North American operations beyond what we would experience in a typical winter. In March, powerful snow and rain storms early in the month and resulting flooding and its after-effects are affecting both Carbohydrates Solutions and Origination operations. Rail transportation has been disrupted throughout the region; our corn processing complex in Columbus, Nebraska, was idled due to flooding and currently is running at reduced rates; and unfavorable river conditions since December are severely limiting barge transportation movements and port activities. Earlier in the quarter, severe cold temperatures and snowstorms affected some of our Carbohydrate Solutions processing facilities in the Midwest. The extreme weather reduced corn processing volumes principally due to a slowdown in rail and truck transportation, which affected both inbound and outbound shipments. We continue to assess the situation, and utilize our transportation and operating network as much as possible to meet customer needs. Taken together, we expect these severe weather disruptions to have a negative pre-tax operating profit impact to ADM of $50M-$60M for the first quarter. That impact will be roughly equal between Carbohydrate Solutions and Origination, with some minor impacts to our other segments. We will have a further update on our first quarter 2019 earnings call, with an assessment of full year impacts, including recoveries and offsets."