CHICAGO, Ill. (Reuters) —Archer Daniels Midland has reported higher-than-expected quarterly profit on strong oilseed crushing margins and robust global demand for soybean meal.
However, revenue fell 15 percent because the strong dollar limited U.S. grain exports, and corn processing profit fell on weak ethanol margins and lower biofuel production volumes.
ADM’s first-quarter net profit rose to US$493 million from $267 million a year earlier.
Revenue dropped to $17.51 billion from $20.70 billion a year earlier. Analysts, on average, expected revenue of $20.58 billion.
ADM’s agricultural services business, its largest in terms of revenue, posted a net profit of $194 million, up from $142 million a year earlier. Higher global merchandising volumes and margins boosted results for the unit, which buys, sells, stores and transports grain and other agricultural products.
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Oilseeds processing profit surged 58 percent to $469 million from $297 million a year earlier on record soy crushing volumes in Europe and North America and rising volumes in South America, where farmers are harvesting a bumper crop.
Poor ethanol margins and lower production in the quarter dragged down results at ADM’s corn processing segment.
The unit earned a net $113 million, down 39 percent from $186 million a year earlier.
ADM’s new ingredients segment’s quarterly profit jumped 17 percent to $68 million from $58 million a year earlier.
