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ADM reports operating profit of $758 million

Earnings per share in third quarter 2019 down from third quarter 2018

Archer Daniels Midland Company reported financial results for the quarter ended Sept. 30, 2019, on Oct. 31.

ADM earnings

“We delivered solid third quarter results, consistent with the perspectives we provided last quarter, despite a difficult external environment,” said Chairman and CEO Juan Luciano. “We maintained our focus on serving our customers and advancing our strategic goals and continued to realize the benefits of the actions that we took earlier this year.”

Results of Operations

  • Ag Services & Oilseeds results were lower than the third quarter of 2018, which benefited from very strong crush margins. Ag Services results were in line with the prior-year quarter. In South America, results were up on improved origination margins in Brazil and increased export volumes from Argentina. In North America, improved merchandising results from favorable ownership positions helped offset a continued challenging volume and margin environment for U.S. exports.
  • In Crushing, results were lower year over year. Crush margins globally were substantially below the record high levels seen in 2018, though still solid in North America and EMEA. In South America, margins were pressured by continued strong exports of soybeans to China. Global crush margins benefited from positive net timing effects of approximately $50 million during the third quarter.
  • Refined Products and Other results were significantly higher than the third quarter of 2018, largely driven by significant improvements in Golden Peanut and Tree Nuts.
  • Carbohydrate Solutions results were substantially lower than the year-ago period.
  • Starches and Sweeteners results were down versus the third quarter of 2018. Results in North America were affected by higher net corn costs partly offset by lower manufacturing costs, which included improvements at the Decatur corn complex. EMEA results were impacted by lower selling prices and continued pressure from Turkish sweetener quotas. In wheat milling, an increase in sales volumes was more than offset by lower margins due to limited opportunities in wheat procurement.
  • Bioproducts results were significantly lower, driven by a continued unfavorable margin environment in the ethanol industry.
  • Nutrition results were substantially higher.
  • WFSI results were significantly higher than the prior-year quarter, with growth across the portfolio. Higher sales and margins globally led to record quarterly results for WILD.
  • In Specialty Ingredients, the protein business continued to expand amid the growing consumer market for alternative proteins
  • Animal Nutrition results were up year over year, driven largely by contributions from Neovia. Improvements in vitamin additives also helped contribute to positive results. Lysine production improved, though pricing was negatively impacted by lower global demand.

“We are excited about our strategic growth activities, and particularly our participation and leadership in major global trends such as flexitarian diets, nutrition for health, and sustainable materials,” Luciano said. “While external conditions for certain businesses may remain fluid and potentially challenging in the near term, our growing leadership position in major global trends, and our strength in innovation, efficiency, and customer service, position us well for stronger results in 2020 and beyond.”

Source: ADM, which is solely responsible for the information provided and is wholly owned by the source. Informa Business Media and all its subsidiaries are not responsible for any of the content contained in this information asset. 
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