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Three US troops, 1 contractor killed in Afghanistan IED blast, Pentagon says

Three US troops and 1 contractor were killed by an improvised explosive device in Afghanistan Monday near Bagram Air Base, the Pentagon announced. Three U.S. service members were also wounded in the blast.

Those hurt were evacuated and are receiving care, the Pentagon said. The names of those killed are being held back for 24 hours until the notification of next of kin has been completed, as per U.S. Department of Defense policy.

The violence follows recent signs of support of US outreach to the Taliban.

Chief Executive Abdullah Abdullah says he supports U.S. efforts to pursue a cease-fire with the Taliban, who effectively control half of Afghanistan and refuse to negotiate with his government. Abdullah Abdullah shares power with President Ashraf Ghani in a U.S.-brokered unity government. Abdullah spoke to The Associated Press on Sunday at the World Economic Forum in Jordan.

Abdullah says the Taliban could take part in elections and even compete for the presidency if they renounce violence. He says Afghans want peace, but "they don't want to live the way that the Taliban want them to live."

The Taliban have held talks with a U.S. envoy in recent months while continuing to carry out daily attacks on Afghan forces. The insurgents dismiss the Afghan government as a U.S. puppet.

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This is a developing story. Please check back for updates.

The Associated Press contributed to this report.

Source: Fox News World

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Tapper Defends CNN: We Didn’t Get ‘Anything Wrong’ In Russia Collusion Hoax

CNN didn’t get “anything wrong” during the course of reporting on the debunked Russia collusion story, according to its senior correspondent Jake Tapper.

During a Sunday exchange with White House Chief of Staff Mick Mulvaney, Tapper defended his network’s breathless coverage of the Russia hoax in light of the Mueller report finding no collusion.

“I’m not sure what you’re saying the media got wrong. The media reported the investigation was going on. Other than the people in the media on the left, not on this network, I don’t know anybody that got anything wrong,” Tapper said.

“We didn’t say there was a conspiracy. We said Mueller was investigating a conspiracy.”

“That’s fine, if that’s your recollection of history, that’s great,” Mulvaney replied. “Face it, the media got this wrong. It’s okay. People get stuff wrong all the time, just not at this level.”

“We need to figure out what went wrong with the Mueller report, why — in all fairness to your network — why the media got it so wrong for so long,” he added.

The blatant lie by Tapper wasn’t lost on conservatives, where some tried to remind him on social media that his network led the charge on anti-Trump rhetoric and botched several news stories regarding the “Russia collusion” conspiracy theory.

Liberal journalist Glenn Greenwald mocked the “absurd” idea that CNN got nothing wrong.

Tapper’s remarks reflect the larger media’s attitude toward the collapsed Russian collusion narrative, as MSNBC and CNN among others have demonstrated zero self-awareness in their false reporting over the last three years regarding the fake conspiracy theory.


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Source: InfoWars

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Video: AOC Using Black Accent to Speak to Minorities ‘Most Cringe Thing You’ll Watch All Day’

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Alabama police chief “disgusted” by arrest video

An Alabama police chief said Wednesday that he is "disgusted" by a video recording showing an officer threatening and cursing a woman during a traffic stop that turned violent.

Tuscaloosa Police Chief Steve Anderson commented during a news conference in which he released police bodycam video of the arrest of Jhasmynn Sheppard, 22. The way officers treated the woman was "not what we teach," he said.

Both an officer who initially stopped the woman and another officer who arrived as a backup have been placed on desk duty and face disciplinary procedures, Anderson said. He didn't release the full name of either man.

Sheppard was suspected of leaving the scene of a car accident Friday. The video shows an officer trying to handcuff her less than 10 seconds after requesting her driver's license. Another officer arrives moments later.

"Sir, please don't do me like this," the woman is heard saying early in the confrontation. She struggled as an officer tried to handcuff her, and both wound up on the pavement. Video shot by bystanders showed an officer hitting the woman with a collapsible baton.

The video released by Anderson shows an officer cursing the woman, threatening to kick out her teeth and saying he could have shot her. The initial physical confrontation between the officer and the woman appeared justified, the chief said, but the curses and threats were out of bounds.

Anderson said he was "disgusted" and "very disappointed" by the video, which he said shows officers violated department training throughout the encounter.

One officer's account of the arrest was previously detailed in court documents filed Tuesday.

The officer said the woman was making "furtive" movements and incoherent statements and then resisted arrest. The officer said the woman took his baton, but on video a man is heard claiming she grabbed his genitals.

Source: Fox News National

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France threatens to reject May’s Brexit delay request

Britain's Prime Minister Theresa May answers questions in the Parliament in London
Britain's Prime Minister Theresa May answers questions in the Parliament in London, Britain, March 20, 2019 in this screen grab taken from video. Reuters TV via REUTERS

March 20, 2019

By Elizabeth Piper, Kylie MacLellan and William James

LONDON (Reuters) – France threatened to reject British Prime Minister Theresa May’s request for a three-month delay to Brexit on Wednesday unless she can guarantee to get her departure plans though parliament, potentially sending Britain crashing out of the EU without a deal.

May asked the European Union to allow Britain to extend Brexit to June 30 and EU leaders are expected to discuss the matter at a summit on Thursday. The decision must be taken unanimously by all remaining 27 EU members.

Some EU states, including Germany, had given a largely positive response to May’s well-flagged request.

But with the clock ticking toward Britain’s formal departure date on March 29, French Foreign Minister Jean-Yves Le Drian said May would need to make her case before EU leaders in Brussels.

“Our position is to send the British a clear and simple message: as Theresa May said repeatedly herself, there are only two options to get out of the EU: ratify the Withdrawal Agreement or exit without a deal,” Le Drian told the French parliament.

“A situation in which Mrs May was not be able to present to the European Council sufficient guarantees of the credibility of her strategy would lead to the extension request being dismissed and opting for a no-deal exit,” he said.

May’s initiative came just nine days before Britain is formally due to leave the European Union and marked the latest twist in more than two years of negotiations that have left British politics in chaos and the prime minister’s authority in tatters.

After the defeats in parliament opened up the possibility of Britain leaving the EU without a deal and a smooth transition, May said she remained committed to leaving “in an orderly manner” and wanted to postpone Brexit until June 30.

Her announcement prompted uproar in parliament, where the opposition Labour Party accused her of “blackmail, bullying and bribery” in her attempts to push her deal through, and one prominent pro-Brexit supporter in her own Conservative Party said seeking a delay was “betraying the British people”.

Britain voted in 2016 to leave the EU by 52 to 48 percent, but the decision has split the country, opening up divisive debates over the future of the economy, the nation’s place in the world and the nature of Britishness itself.

A European Commission document seen by Reuters said the delay should either be several weeks shorter, to avoid a clash with European elections in May, or extend at least until the end of the year, which would oblige Britain to take part in the elections.

The pound fell sharply as May requested her extension.

(Additional reporting by by Kate Holton and Alistair Smout in London and Alastair MacDonald in Brussels; Writing by by Guy Faulconbridge and Giles Elgood; Editing by Janet Lawrence)

Source: OANN

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Romania’s president calls referendum to back anti-graft reform

FILE PHOTO: Romanian President Klaus Iohannis arrives at a European Union summit in Brussels
FILE PHOTO: Romanian President Klaus Iohannis arrives at a European Union summit in Brussels, Belgium March 22, 2019. REUTERS/Yves Herman/File Photo

March 28, 2019

By Radu-Sorin Marinas

BUCHAREST (Reuters) – President Klaus Iohannis on Thursday called a national referendum for May 26, seeking to thwart a drive by Romania’s ruling Social Democrats (PSD) to weaken anti-graft legislation.

Thousands of Romanians protested across the country last month after the PSD government passed an emergency decree that critics said chipped away at prosecutors’ independence in one of the European Union’s most corrupt states.

Approved without public debate, the decree was the latest in a slew of legislative and personnel changes by the PSD since they took power two years ago that have raised EU and U.S. concern for the rule of law in Romania.

“The PSD continues the assault on justice since coming to power,” the centrist Iohannis told reporters on Thursday.

“Justice is a matter of national interest, and citizens have the sovereign right to decide whether or not to let corruption become state policy,” he said in announcing the referendum.

The PSD has repeatedly said its moves in the judicial sphere are meant to remedy abuses committed by prosecutors and judges.

Romania’s president is empowered to call referendums on issues he or she deems to be of national interest. The May 26 plebiscite would coincide with voting for the European Parliament.

Last month, a European Parliament committee backed Romania’s former anti-corruption chief, Laura Codruta Kovesi, to become the EU’s first fraud prosecutor, despite opposition from the PSD government in Bucharest, which sacked her.

Romania has the EU’s rotating presidency until June 30 but the Kovesi case has further weakened Bucharest’s standing in the bloc, and coincided with an EU push to make funding to member states from its next long-term budget from 2021 conditional in part on their upholding of the rule of law.

Romania’s last referendum was held on Oct. 7 to amend the constitutional wording of marriage to read between “a man and a woman”, rather than the gender-neutral “spouses”. It failed to draw enough voters to validate the result, with only 20 percent casting a ballot against the required 30 percent.

(Editing by Mark Heinrich)

Source: OANN

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Trump administration bans abortion referrals at U.S.-funded clinics

FILE PHOTO: A sign is pictured at the entrance to a Planned Parenthood building in New York
FILE PHOTO: A sign is pictured at the entrance to a Planned Parenthood building in New York August 31, 2015. REUTERS/Lucas Jackson/File Photo

February 22, 2019

WASHINGTON (Reuters) – The Trump administration said on Friday that taxpayer-funded family planning clinics which primarily serve low-income Americans will no longer be able to refer patients for abortions, a move that critics vowed to challenge in court.

The new regulation was announced by the U.S. Department of Health and Human Services as part of Title X, a government family planning program that serves about 4 million people.

The program currently subsidizes health centers such as those run by the non-profit Planned Parenthood, which provides contraception, health screenings and abortions. Planned Parenthood serves about 41 percent of Title X patients and receives up to $60 million a year in federal funds for family planning services.

To continue receiving taxpayer subsidies under the program, health clinics will have to comply with the new rule. Its key elements include “prohibiting referral for abortion as a method of family planning,” the health department said in a statement, adding that the rule “eliminates the requirement that Title X providers offer abortion counseling and referral.”

The rule would also require “clear financial and physical separation between Title X funded projects and programs or facilities where abortion is a method of family planning,” the statement said. The law already bans recipients of Title X funds from using those funds to perform abortions.

Conservative groups praised the administration’s move. “We thank President Trump for taking decisive action to disentangle taxpayers from the big abortion industry led by Planned Parenthood,” said Marjorie Dannenfelser, president of the anti-abortion group Susan B. Anthony List.

But officials from the states of New York and California immediately began talking about going to court. “We will take legal action,” New York’s Attorney General Letitia James said in a statement. “These new rules are dangerous and unnecessary, and will prevent millions of Americans from obtaining the care they need and deserve.”

Planned Parenthood’s president, Leana Wen, called the new rule “unconscionable and unethical.”

“This rule compromises the oath that I took to serve patients and help them with making the best decision for their own health,” Wen said in a statement. “Patients expect their doctors to speak honestly with them, to answer their questions, to help them in their time of need.”

(Reporting by Susan Cornwell; Aditional reporting by Julian Mincer; Editing by Tom Brown)

Source: OANN

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FILE PHOTO - A worker sits on a ship carrying containers at Mundra Port in the western Indian state of Gujarat
FILE PHOTO: A worker sits on a ship carrying containers at Mundra Port in the western Indian state of Gujarat April 1, 2014. REUTERS/Amit Dave/File Photo

April 26, 2019

(Reuters) – India has once again delayed the implementation of higher tariffs on some goods imported from the United States to May 15, a government official said on Friday.

The new tariff structure was to come into force from May 2, the spokeswoman said without citing reasons for the delay.

Angered by Washington’s refusal to exempt it from new steel and aluminum tariffs, New Delhi decided in June last year to raise the import tax from Aug. 4 on some U.S. products including almonds, walnuts and apples.

But since then, New Delhi has repeatedly delayed the implementation of the new tariff.

Trade friction between India and the U.S. has escalated after U.S. President Donald Trump announced plans earlier this year to end preferential trade treatment for India that allows duty-free entry for up to $5.6 billion worth of its exports to the United States.

In a further blow, U.S. on Monday demanded buyers of Iranian oil stop purchases by May or face sanctions, ending six months of waivers which allowed Iran’s eight biggest buyers including India to continue importing limited volumes.

(Reporting by Manoj Kumar in New Delhi and Kanishka Singh in Bengaluru; Editing by Anil D’Silva and Raissa Kasolowsky)

Source: OANN

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One of Joe Biden’s newly-hired senior advisers has seemingly had a very recent change of heart.

Symone Sanders, a prominent Democratic strategist and Sen. Bernie Sanders, I-Vt., staffer in 2016, was announced as one of the big-name members of Team Biden on Thursday.

But Sanders, who has also served as a CNN contributor, is seen in resurfaced footage from November 2016 expressing her opposition to a white person leading her party after Donald Trump’s election.

“In my opinion, we don’t need white people leading the Democratic party right now,” Sanders told host Brianna Keilar during a discussion on Howard Dean potentially becoming DNC chairman.

BIDEN HIRES FORMER BERNIE SANDERS’ SPOKESPERSON AS SENIOR ADVISER

“The Democratic party is diverse, and it should be reflected as so in leadership and throughout the staff, at the highest levels. From the vice chairs to the secretaries all the way down to the people working in the offices at the DNC,” she said.

Sanders wrapped up her remarks by saying: “I want to hear more from everybody. I want to hear from the millennials and the brown folks.”

Footage of the interview was resurfaced by RealClearPolitics.

After news of her hiring broke on Thursday, Sanders backed her new boss on Twitter.

TRUMP ASSESSES 2020 DEMS; TAKES SWIPES AT BIDEN, SANDERS; DISMISSES HARRIS, O’ROURKE; SAYS HE’S ROOTING FOR BUTTIGIEG

“@JoeBiden & @DrBiden are a class act. Over the course of this campaign, Vice President Biden is going to make his case to the American ppl. He won’t always be perfect, but I believe he will get it right,” she wrote.

The hiring of Sanders has been viewed as another indication of the expected tough fight that Biden and Sanders are in for as the two frontrunners battle a deep Democratic field.

While Sanders himself didn’t torch Biden as he jumped into the race, it’s clear that many of his progressive supporters view the former vice president as a threat.

Biden’s entry into the race – at least in the early going – sets up a battle between himself and Sanders, who thanks to his fierce fight with eventual nominee Hillary Clinton for the 2016 Democratic nomination, enjoys name ID on the level of the former vice president.

BIDEN VOWS THAT ‘AMERICA IS COMING BACK,’ SPARKING ‘MAGA’ COMPARISONS

Justice Democrats — who also called Biden “out-of-touch” – is an increasingly influential group among the left of the party. They’ve championed progressive Rep. Alexandria Ocasio-Cortez of New York as well as Sanders. The group was founded by members of Sanders 2016 presidential campaign.

Biden has pushed back against the perception that he’s a moderate in a party that’s increasingly moving to the left. Earlier this month he described himself as an “Obama-Biden Democrat.”

And Biden said he’d stack his record against “anybody who has run or who is running now or who will run.”

Former Democratic National Committee chair Donna Brazile – a Fox News contributor – highlighted that “Joe Biden can occupy his own lane in large part because he’s earned it. He’s earned the right to call himself whatever.”

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But she emphasized that “elections are not about the past, they’re about the future…I do believe he has the right ingredients. The question is can he find enough people to help him stir the pot.”

Fox News Andrew O’Reilly contributed to this report.

Source: Fox News Politics

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Baltimore Mayor Catherine Pugh, who is facing increased calls for her immediate resignation, remains in poor health and is not “lucid” enough to decide whether to step down, her attorney told reporters late Thursday.

Steve Silverman, speaking outside one of Pugh’s residences which was raided by the FBI and IRS earlier in the day, said the embattled city leader could make a decision as early as next week.

“She is leaning toward making the best decision in the best interest in the citizens of Baltimore City,” he said, adding that Pugh has “several options” to consider.

“She just needs to be physically and mentally sound and lucid enough to make appropriate decisions.”

BALTIMORE MAYOR CATHERINE PUGH, ON LEAVE AMID BOOK PROBE, HAS HOMES AND CITY HALL OFFICE RAIDED BY FEDS

Silverman said Pugh met with a doctor at home Thursday and plans to do so again Friday, the Baltimore Sun reported.

In the latest image-tarnishing scandal for struggling Baltimore, the first-term Democratic mayor faces accusations that she used children’s book deals to cover up kickbacks for favorable treatment as a state lawmaker and city leader that earned her roughly $800,000 over several years.

BALTIMORE’S ACTING MAYOR SAYS HE ‘WOULD HATE TO SEE’ EMBATTLED MAYOR RETURN AFTER BOOK SCANDALS

As a state senator, 69-year-old Pugh sold $500,000 worth of her self-published “Healthy Holly” illustrated paperbacks to the University of Maryland Medical System, a major state employer whose board she sat on for nearly 20 years.

Baltimore police officers stand outside the house of Baltimore Mayor Catherine Pugh in Baltimore, MD., Thursday, April 25, 2019. Agents with the FBI and IRS are gathering evidence inside the two homes of Pugh and also in City Hall. (AP Photo/Jose Luis Magana)

Baltimore police officers stand outside the house of Baltimore Mayor Catherine Pugh in Baltimore, MD., Thursday, April 25, 2019. Agents with the FBI and IRS are gathering evidence inside the two homes of Pugh and also in City Hall. (AP Photo/Jose Luis Magana)

UMMS reportedly paid Pugh for 100,000 copies of her books between 2011 and 2018 with the stated intention of distributing the books to schools and day care centers. But some 50,000 copies remain unaccounted for and officials are probing if they were even printed.

Pugh also made $300,000 in bulk sales to other customers including health carriers that did business with the city of Baltimore.

BALTIMORE CITY COUNCIL CALLS ON EMBATTLED MAYOR CATHERINE PUGH TO RESIGN IMMEDIATELY

The politically isolated Pugh slipped out of sight on April 1 after a hastily organized press conference where she called her no-contract book deals a “regrettable mistake.” That same day, Maryland’s governor called on the state prosecutor to investigate allegations of “self-dealing.”

Pugh took an indefinite leave of absence, citing her health deteriorating intensely after a bout with pneumonia.

Federal agents arrive at the Maryland Center for Adult Training in Baltimore. MD, Thursday, April 25, 2019. Agents with the FBI and IRS are gathering evidence inside the two homes of Baltimore Mayor Catherine Pugh and in City Hall, as well as the office of her lawyer and the home of a top aide.

Federal agents arrive at the Maryland Center for Adult Training in Baltimore. MD, Thursday, April 25, 2019. Agents with the FBI and IRS are gathering evidence inside the two homes of Baltimore Mayor Catherine Pugh and in City Hall, as well as the office of her lawyer and the home of a top aide. (Loyd Fox/Baltimore Sun via AP)

On Thursday morning, agents with the FBI and IRS searched her two Baltimore homes, her City Hall offices, and a nonprofit organization she once led. The home of at least one of Pugh’s aides was also scoured.

Silverman said federal agents also served a subpoena at his law firm, retrieving Pugh’s original financial records. They did not seek any attorney-client privileged communications, he said.

Pugh’s attorney said she was “emotionally extremely distraught” following the searches by FBI and IRS agents.

“There was nothing incriminating that came out of her home,” Silverman said.

UMMS spokesman Michael Schwartzberg told reporters that the medical system received a grand jury witness subpoena seeking documents and information related to Pugh.

Other probes against Pugh include a review by the city ethics board and the Maryland Insurance Administration.

BALTIMORE MAYOR’S $500G DEAL FOR ‘HEALTHY HOLLY’ CHILDREN’S BOOKS DRAWS SCRUTINY

In recent weeks, the calls for Pugh’s resignation have intensified with the strongest voice coming from Republican Gov. Larry Hogan, who did not mince words after Thursday’s early morning raids.

“Now more than ever, Baltimore City needs strong and responsible leadership. Mayor Pugh has lost the public trust,” he said. “She is clearly not fit to lead. For the good of the city, Mayor Pugh must resign.”

Federal Bureau of Investigation, and Internal Revenue Service agents search the home of Baltimore Mayor Catherine Pugh in Baltimore, MD., Thursday, April 25, 2019. Agents with the FBI and IRS are gathering evidence inside the two homes of Baltimore Mayor Catherine Pugh and in City Hall.

Federal Bureau of Investigation, and Internal Revenue Service agents search the home of Baltimore Mayor Catherine Pugh in Baltimore, MD., Thursday, April 25, 2019. Agents with the FBI and IRS are gathering evidence inside the two homes of Baltimore Mayor Catherine Pugh and in City Hall. (Jerry Jackson/Baltimore Sun via AP)

Many of her fellow Democrats, including those on Baltimore’s demoralized City Council and state lawmakers, are also insisting that Pugh put the citizens’ interests above any attempt to preserve her political career.

City Council member Brandon Scott called the Thursday raids “an embarrassment to the city.”

However, only a conviction can trigger a mayor’s removal from office, according to the city solicitor. Baltimore’s mayor-friendly City Charter currently provides no options for ousting its executive.

Six of Pugh’s staffers joined her on paid leave earlier this month; three of them were fired this week by the acting mayor.

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Pugh came to office in late 2016 after edging out ex-Mayor Sheila Dixon, who had spent much of her tenure fighting corruption charges before being forced to depart office in 2010 as part of a plea deal connected to the misappropriation of about $500 in gift cards meant for needy families.

She would certainly face a bruising 2020 Democratic primary if she were to return and run for reelection. Veteran City Council leader Bernard “Jack” Young, who is serving as acting mayor, said as she went on leave that he would merely be a placeholder. But this week, before the raids, he said “it could be devastating for her” if she tried to return.

The Associated Press contributed to this report.

Source: Fox News National

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FILE PHOTO: Cases of Pepsi are shown for sale at a store in Carlsbad
FILE PHOTO: Cases of Pepsi are shown for sale at a store in Carlsbad, California, U.S., April 22, 2017. REUTERS/Mike Blake/File Photo

April 26, 2019

By Amit Dave and Mayank Bhardwaj

AHMEDABAD/NEW DELHI (Reuters) – PepsiCo Inc has sued four Indian farmers for cultivating a potato variety that the snack food and drinks maker claims infringes its patent, the company and the growers said on Friday.

Pepsi has sued the farmers for cultivating the FC5 potato variety, exclusively grown for its popular Lay’s potato chips. The FC5 variety has a lower moisture content required to make snacks such as potato chips.

PepsiCo is seeking more than 10 million rupees ($142,840.82) each for alleged patent infringement.

The farmers grow potatoes in the western state of Gujarat, a leading producer of India’s most consumed vegetable.

“We have been growing potatoes for a long time and we didn’t face this problem ever, as we’ve mostly been using the seeds saved from one harvest to plant the next year’s crop,” said Bipin Patel, one of the four farmers sued by Pepsi.

Patel did not say how he came by the PepsiCo variety.

A court in Ahmedabad, the business hub of Gujarat, on Friday agreed to hear the case on June 12, said Anand Yagnik, the lawyer for the farmers.

“In this instance, we took judicial recourse against people who were illegally dealing in our registered variety,” A PepsiCo India spokesman said. “This was done to protect our rights and safeguard the larger interest of farmers that are engaged with us and who are using and benefiting from seeds of our registered variety.”

PepsiCo, which set up its first potato chips plant in India in 1989, supplies the FC5 potato variety to a group of farmers who in turn sell their produce to the company at a fixed price.

The All India Kisan Sabha, or All India Farmers’ Forum, has asked the Indian government to protect the farmers.

The farmers’ forum has also called for a boycott of PepsiCo’s Lay’s chips and the company’s other products.

The Ministry of Agriculture & Farmers’ Welfare did not immediately respond to an email seeking comment.

PepsiCo is the second major U.S. company in India to face issues over patent infringement.

Stung by a long-standing intellectual property dispute, seed maker Monsanto, which is now owned by German drugmaker Bayer AG, withdrew from some businesses in India over a cotton-seed dispute with farmers, Reuters reported in 2017. (reut.rs/2ncBknn)

(Reporting by Amit Dave in AHMEDABAD and Mayank Bhardwaj in NEW DELHI; Editing by Martin Howell and Louise Heavens)

Source: OANN

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FILE PHOTO: The Archer Daniels Midland Co (ADM) logo is displayed on a screen on the floor of the NYSE in New York
FILE PHOTO: The Archer Daniels Midland Co (ADM) logo is displayed on a screen on the floor of the New York Stock Exchange (NYSE) in New York, U.S., May 3, 2018. REUTERS/Brendan McDermid/File Photo

April 26, 2019

By P.J. Huffstutter and Shradha Singh

CHICAGO/BENGALURU (Reuters) – Archer Daniels Midland Co said on Friday it was considering spinning off its ethanol business after slim biofuel margins and Midwestern floods slammed the U.S. grains merchant’s profit, which tumbled 41 percent in the first quarter.

ADM said it was creating an ethanol subsidiary, which will include dry mills in Columbus, Nebraska; Cedar Rapids, Iowa; and Peoria, Illinois.

The ethanol subsidiary will report as an independent segment, the company said, allowing options “which may include, but are not limited to, a potential spin-off of the business to existing ADM shareholders.”

Results were hit by the “bomb cyclone” blizzards that devastated the Midwest and Great Plains this year, causing massive flooding across Nebraska, Iowa and Missouri, washing out rail lines and wreaking havoc in the moving and processing of corn, soybeans and wheat. One-sixth of U.S. ethanol production was halted.

In March, ADM warned Wall Street that flooding and severe winter weather in the U.S. Midwest would reduce its first-quarter operating profit by $50 million to $60 million.

“The first quarter proved more challenging than initially expected,” said Chairman and Chief Executive Officer Juan Luciano, with earnings down in its starches, sweeteners and bioproducts unit. Luciano said impacts of the severe weather ultimately “were on the high side of our initial estimates”.

Ongoing problems in the ethanol industry added to the problems and “limited margins and opportunities” for ADM, Luciano said.

The ethanol industry has been in the midst of a historic downswing due to the U.S.-China trade war, excess domestic supply and weak margins.

ADM, which had been an ethanol pioneer, signaled to Wall Street in 2016 that it was hunting for options and considering sales of its U.S. dry ethanol mills. Luciano told Reuters this year that offers ADM had received for the mills were too low.

In addition, ADM said it planned to repurpose its corn wet mill in Marshall, Minnesota, to produce higher volumes of food and industrial-grade starches.

Other major traders are alsy trying to distance themselves from struggling ethanol businesses. Louis Dreyfus Company BV spun off its Brazilian sugar and ethanol business Biosev in 2013. Rival Bunge sold its sugar book and has sought a buyer for its Brazilian mills since 2013.

ADM, which makes money trading, processing and transporting crops, such as corn, soybeans and wheat, has been looking to strengthen its core business. Last month it said it would seek voluntary early retirements of some North American employees and cut jobs as part of a restructuring effort.

The company expects to lower 2019 capital spending by 10 percent to between $800 million and $900 million.

Net earnings attributable to the company fell to $233 million, or 41 cents per share, in the three months ended March 31, from $393 million, or 70 cents per share, a year earlier.

Revenue fell to $15.30 billion from $15.53 billion. On an adjusted basis, the company earned 46 cents per share, while analysts on average had estimated 60 cents, according to IBES data from Refinitiv.

(Reporting by Shradha Singh in Bengaluru; Editing by Shounak Dasgupta, Chizu Nomiyama and David Gregorio)

Source: OANN

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