Archer-Daniels-Midland Co. said March 25 that it expects a $50 million to $60 million negative impact on its pretax operating profit for first quarter 2019 due to "extreme winter weather" in North America.
The agricultural products company said the negative impact of snowstorms and rainstorms will be roughly equally distributed between its carbohydrate solutions segment and origination segment.
"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," Archer-Daniels said in a statement.
The slowdown in rail and truck transportation particularly affected the company's inbound and outbound shipments and led to lower corn processing volumes in its facilities in the Midwest, the company added.
Archer-Daniels will provide further details on the impact of the weather on full year 2019 during its first-quarter earnings call scheduled for April 30.
In midmorning trading in New York, its shares were up 0.35%, or 15 cents, at $42.77.