US agribusiness giant Archer Daniels Midland (ADM) has posted a jump in second-quarter profits on the back of higher grain exports and improved corn-processing volumes.
Shares in ADM jumped today (1 February) after the company booked net earnings of US$732m for the quarter to 31 December, up from $567m a year earlier.
Operating profit from ADM’s agricultural services division, which transports grain, rose from $150m to $426m, as the US company benefited from disruption to grain supplies from Russia and Ukraine.
Within ADM’s corn-processing unit, operating profit more than tripled – up from $109m to $399m – as volumes rose 24% amid better sweetener exports and stronger demand for industrial starches in the US.
ADM’s group-wide segment operating profit stood at $1.36bn, up from $970m in the second quarter. The company’s second-quarter net sales reached $20.93bn, climbing from $15.91bn.
ADM’s shares were up 6.8% at $34.89 at 11:06 ET today.
Click here for the full statement from ADM.
