Chicago, IL — Archer Daniels Midland Co. (ADM) on Wednesday reported net earnings of $469 million, up from $235 million in 2019 for the second quarter, ended June 30.
Adjusted earnings per share (EPS) in the second quarter, a period that challenged global agribusiness due to the COVID-19 pandemic,were $0.85 compared to $.60 in 2019. The agribusiness giant posted revenues of $16.281 billion, down slightly from $16.297 billion in 2019.
Over the last four quarters, the company has surpassed consensus EPS estimates four times.
“This was another strong quarter for ADM. I am proud of our team’s excellent work, as their execution of our strategy continued to deliver results,” said Chairman and CEO Juan Luciano. “Through good and challenging times alike, we have kept a strong and steady focus on transforming and improving our company."
Ag Services results were substantially better year over year. Strong execution in South America helped deliver record quarterly origination and export volumes in a significantly improved margin environment, driven by a weaker Brazilian Real and strong farmer selling, ADM said.
Global trade delivered another strong quarter, as countries looked to secure stable supplies of food amid the pandemic. Lower interior grain margins affected results in North America, the company noted.
Crushing was lower vs. the prior-year period, ADM said. South America delivered significantly higher year-over-year results in an environment of solid domestic meal demand and the weaker Brazilian Real. In EMEAI, crush volumes and margins remained solid. In North America, margins were impacted by COVID-19 effects on customers.
Vantage Corn Processors results were higher than the second quarter of 2019, driven by favorable risk management results on inventory positions and strong demand for industrial ethanol.
While average industry ethanol margins were down versus the prior year, prices and margins improved throughout the quarter as lower production, including two idled ADM dry mills, and some recovery in driving miles led to falling industry stocks.
To read the full ADM earnings report, click here.