Archer Daniels Midland Co. (ADM) this week reported financial results for the quarter ended Dec. 31, 2018. Adjusted segment operating profit was $860 million, up from $793 million in the same period last year. Earnings per share (EPS) were 55 cents, which included a loss of 2 cents per share related to the sale of businesses and assets, 35 cents per share related to asset impairment, restructuring and settlement charges, a charge of 1 cent per share related to acquisition expenses and a tax benefit of 5 cents per share related to the U.S. tax reform and certain discrete items. Adjusted EPS, which excluded these items, was 88 cents, up from 82 cents during the same period last year.

“Our team executed well, delivering strong year-over-year profit growth in the fourth quarter,” ADM chairman and chief executive officer Juan Luciano said. “Looking back on the full year, the team did a great job focusing on the items we could control, as we continued innovating to serve customer needs and advancing our strategic priorities. Our effective management through complicated and rapidly changing trade, geopolitical and market conditions helped deliver an impressively strong 2018 that included solid profit growth, improved returns on invested capital and higher cash flows.”

Luciano said the company will continue working to deliver shareholder value in 2019 “by vigorously executing our strategy, including aggressively working to improve execution in select businesses, accelerating our 'Readiness' efforts to deliver increasing value and harvesting the contributions from our acquisitions and organic growth investments.”

He added, “By continuing to pull the levers under our control, we are positioning ourselves to grow profits and returns in 2019 and beyond.”

Results of operations

According to ADM, Origination results were down versus the fourth quarter of 2017.

Merchandising & Handling results were lower than the prior-year period, which included significant insurance settlements and other income. The company said North American results benefited from wheat basis gains due to strong carries, while solid execution that drove improvements in export margins and comparable year-over-year export volumes despite the extremely small volume of U.S. soybean exports to China. North American exports of corn -- and soybeans to markets outside of China -- were higher.

ADM said Global Trade benefited from good execution in origination and destination marketing as well as an intra-company insurance settlement, offset by timing losses in ocean freight hedges, which are expected to reverse.

Transportation results benefited from improved freight rates, offset by increased operating costs.

Oilseeds results were more than double the prior-year period.

ADM reported that Crushing & Origination results were up significantly year over year, as the business continued to leverage its global asset footprint to capitalize on solid demand for soybean meal and strong crush margins.

Refining, Packaging, Biodiesel & Other results were up on strong biodiesel volumes and margins as well as higher year-over-year results from food oils, partially offset by challenging market conditions in nut processing.

Asia was higher on strong Wilmar results.

Carbohydrate Solutions results were lower than the year-ago quarter.

In Starches & Sweeteners, North American volumes remained solid. Results were driven by lower margins and sales in Europe/Middle East/Africa (EMEA), higher costs in North American liquid sweeteners -- in part due to lower production rates at the Decatur complex -- and lower co-product income.

Bioproducts results were lower than the fourth quarter of 2017, when trading results were very strong. Ethanol margins and volumes were down in a continued weak industry pricing and margin environment.

Nutrition results were down versus the prior-year period.

WFSI results were higher year over year, with sales up 14% versus the prior-year quarter on a constant currency basis. Recent acquisitions in WILD and Health & Wellness, along with strong demand for lecithin, also contributed to higher results.

Animal Nutrition results for the company were significantly lower, driven primarily by continued production issues that compressed margins in amino acids, including lysine.

Other results were negative but improved versus the prior-year period, which included significant insurance settlements, the company reported.

Current-quarter results were driven by an intra-company insurance settlement relating to sorghum shipments in early 2018 as well as other underwriting losses.

ADM Investor Services results were up year over year.