Archer Daniels Midland's profit beats estimates

mardi 1 novembre 2016

U.S. agricultural products trader Archer Daniels Midland reported a far better-than-expected third-quarter profit on Tuesday as higher U.S. exports of corn and soybeans boosted volumes and margins.

U.S. farmers have nearly completed what is expected to be the largest corn and soybean harvests on record, which should benefit ADM again in the current quarter.

"With improving market conditions and a large U.S. harvest, combined with the team's solid execution capabilities, we feel good about the remainder of the year and a stronger 2017," Chief Executive Juan Luciano said in a statement.

Chicago-based ADM makes money buying, selling, storing, transporting and processing grains and oilseeds around the world. Margins are typically thin, but volumes are massive when crop supplies are abundant and prices are low, as they are now.

Export sales of corn and soybeans from the United States were well ahead of the normal pace in the third quarter, although volumes shipped from South America declined.

ADM, whose shares were up 3.9 percent at $45.25 in premarket trading, said net earnings attributable to the company rose to $341 million, or 58 cents per share, in the quarter ended Sept. 30, from $252 million, or 41 cents per share, a year earlier.

Revenue fell 4.4 percent to $15.83 billion.

Excluding items, ADM earned 59 cents per share, beating the average analysts' estimate of 46 cents a share, according to Thomson Reuters I/B/E/S.

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Archer Daniels Midland's profit beats estimates

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