CHICAGO, Ill. (Reuters) — Archer-Daniels-Midland Co. beat Wall Street expectations for third-quarter profit on good ethanol and sweetener margins and strong Brazilian crop exports, though results were lower year-on-year.
The company said it was raising its full-year earnings outlook after a strong first three quarters and a favourable market environment.
ADM has capitalized on good demand for food, animal feed and biofuel, while record-large corn and soybean harvests in Brazil have offset reduced supplies from drought-hit Argentina and war-torn Ukraine.
It makes money by processing, trading and shipping crops around the world, often thriving when crises such as war or drought trigger shortages.
Read Also
StatCan stands by its model-based crop forecast
Statistics Canada’s model-based production estimates are under scrutiny, but agency says it is confident in the results.
ADM posted an adjusted profit of $1.63 per share for the three months ended Sept. 30, which was above analysts’ average estimate of $1.52 per share but short of the $1.86 per share posted in last year’s strong third quarter, according to LSEG data.
The company’s Ag Services and Oilseeds unit, its largest in terms of revenue, posted a 21 percent drop in operating profit as a surge in South American crop exports dented demand for supplies from the United States, home to the bulk of the company’s operations. Lower year-on-year oilseed crushing results also dragged on profit.
Sharply lower results at Singapore-listed agribusiness Wilmar International pressured ADM’s oilseeds sub-segment. The company owns a 22.5 percent equity stake in Wilmar and is a joint venture partner with Wilmar in vegetable oil producer Olenex.
