Home Headlines ADM beats profit estimates as Ukraine crisis stokes crop shortages
Our website publishes news, press releases, opinion and advertorials on various financial organizations, products and services which are commissioned from various Companies, Organizations, PR agencies, Bloggers etc. These commissioned articles are commercial in nature. This is not to be considered as financial advice and should be considered only for information purposes. It does not reflect the views or opinion of our website and is not to be considered an endorsement or a recommendation. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third-party websites, affiliate sales networks, and to our advertising partners websites. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish advertised or sponsored articles or links, you may consider all articles or links hosted on our site as a commercial article placement. We will not be responsible for any loss you may suffer as a result of any omission or inaccuracy on the website.

ADM beats profit estimates as Ukraine crisis stokes crop shortages

by jcp

By Karl Plume and Ruhi Soni

(Reuters) -Global grain trader Archer-Daniels-Midland Co reported a higher-than-expected quarterly profit on Tuesday on higher demand from importing nations amid reduced harvests in key breadbasket regions and global food supply concerns after Russia’s invasion of Ukraine.

Chicago-based ADM said tight grain inventories would persist “for the next few years” and forecast 2022 profit would top the company’s record performance last year.

Shares rose 3.5% in premarket trading.

ADM’s results highlighted how global grains merchants have weathered surging inflation and supply chain disruptions caused by the war. Ukraine and Russia supply nearly a third of world wheat exports, a fifth of globally traded corn and 80% of sunflower oil.

“We expect reduced crop supplies – caused by the weak Canadian canola crop, the short South American crops, and now the disruptions in the Black Sea region – to drive continued tightness in global grain markets for the next few years,” Chief Executive Officer Juan Luciano said.

Grain supply chain middlemen like ADM and rivals Bunge Ltd, Cargill Inc and Louis Dreyfus Co, known as the ABCDs of global grain, tend to thrive when crises such as droughts or war trigger shortages in parts of the world.

Operating profit in ADM’s Ag Services and Oilseeds segment, its largest in terms of revenue, jumped 30% in the quarter on strong trading results and improved oilseed processing margins in every geography apart from China.

In Carbohydrate Solutions, which includes corn processing and ethanol, operating profit was up 20%. Nutrition unit profit rose 23%.

Net earnings attributable to ADM jumped 53% to $1.05 billion, or $1.86 per share, in the first quarter ended March 31, from a year ago.

Excluding items, the company earned $1.90 per share, beating Wall Street expectations of $1.41, as per Refinitiv data.

Revenue rose by about a quarter to $23.65 billion, above analysts’ average estimate of $20.80 billion.

(Reporting by Ruhi Soni in Bengaluru and Karl Plume in Chicago; Editing by Maju Samuel and Bernadette Baum)

You may also like

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More