Archer Daniels Midland has reported an 83% slump in fourth-quarter earnings, dragged lower by the first operating losses in agricultural services and corn processing in at least four years.

Shares in the world's biggest grain processor slid 5% at one point in New York, wiping more than $1bn from its stock market value.

Patricia Woertz, the ADM chief executive, blamed the decline to $64m in earnings for the April-to-June period, from $372m a year before, on the world recession, which has sapped demand for many of its products, including ethanol made from corn.

"We felt the impact of the global economic downturn," she said.

Earnings per share came in at $0.10 per share, short of the $0.44 expected by Wall Street.

Downwardly mobile

The corn processing division tumbled to an $11m operating loss from a $262m profit a year before, hurt by a double whammy of falling ethanol prices and higher costs for the grain.

Agricultural services - historically a big earner for ADM - fell $11m into the red, compared with an $88m profit a year before, as lower demand for commodities coupled with softer risk management takings took their toll.

Both divisions have reported successive profits since at least the July-to-September quarter in 2005, the earliest data readily available on the company's website.

Margin squeeze

However, the group's oilseeds processing unit remained in the black, albeit with profits down 39% at $227m, as a robust performance by the group's stake in Wilmar International, the Singapore-listed vegetable oils giant, offset some of the weakness in crushing margins.

Crush margins slid on both sides of the Atlantic, with grain handling results suffering in Europe too. 

Ms Woertz added that she saw "improved demand" in the group's main feed, food and fuel markets.

ADM shares stood 4.4% lower at $29.04 in afternoon trade.