Linked In
News In
Linked In

You are viewing your 1 complimentary article.

Register now to receive full access.

Already registered?

Login | Join us now

ADM profits surge on rising processing margins

Twitter Linkedin eCard

Agribusiness giant Archer Daniels Midland reported surging profits, thanks to rising margins from its corn and oilseed processing segments.

Net profit attributable to the company rose to $339 million, up 47% year-on-year, over the three months to March 31.

Revenues rose by some 4% over the same period, to $14.99bn.

The company's adjusted net-profit came in at 60 cents per share, missing analyst estimates by some 2 cents.

Wider margins

ADM profits were driven by higher margins and volumes in its grain processing businesses.

The company's total processed volumes rose to 14.4m tonnes, over the period.

Oilseed processing, the company's most profitable segment, saw increased margins, particularly in seeds other than soybeans, with total profits up 20% at $313m.

"Softseeds results were significantly higher than the previous year, as we took advantage of our softseed processing footprint and flex capacity to capitalize on margin opportunities both in North America and Europe," ADA said.

But results from soybean crushing were limited by a "competitive" protein meal market, as well as slower crushing in South America, where farmers are proving reluctant to sell their current crop.

Rising corn profits

Profits from the company's corn processing segment rose 35% year-on-year, to $177m.

"Sweeteners and starches delivered a strong performance on improved domestic demand and higher volumes and margins from the European business," ADM said.

Ethanol earnings were also up, thanks to "very strong exports and improved margins".

Profits from the company's agricultural services segment also ticked up, to $81m, thanks to a 5% rise in sales to $6.81m.

"In Merchandising and Handling, North America grain showed better results, with improving grain carries and good execution volumes amid strong global demand for US commodities," ADM said.

By William Clarke

Twitter Linkedin eCard
Related Stories

Will protein prices fight back against fat in dairy markets?

Prices of fats remain elevated against protein values in dairy - at a time when the opposite is true in markets for oilseed products

World phosphate, potash shipments to grow in 2018, helped by Chinese needs

Mosaic forecasts further demand expansion, as it heralds a "transformational year" for its own fortunes, after a 2017 marred by a one-time tax charge

Deere lifts sales hopes - even as it unveils biggest loss in 25 years

The maker of John Deere tractors flags "strengthening" market conditions, but swallows a huge writedown prompted by US tax retorms

Plant Impact agrees takeover by Croda, after failure of Bayer contract

The crop enhancement group, floored by the failure of a supply deal with Bayer, agrees a takeover by a maker of chemicals from anti-wrinkle creams to floor coatings
Home | About | RSS | Commodities | Companies | Markets | Legal disclaimer | Privacy policy | Contact

Our Brands: Comtell | Feedinfo | FGInsight

© 2017 and Agrimoney are trademarks of Agrimoney Ltd
Agrimoney is part of AgriBriefing Ltd
Agrimoney Ltd is registered in England & Wales. Registered number: 09239069