Chicago, IL — Archer Daniels Midland Co. (ADM) on Tuesday, Oct. 26, reported net earnings of $542 million in the third quarter, with segment operating profit of $1 billion.
“Agile execution across our tightly integrated supply chain amid an environment of strong demand and robust crush margins, and continued impressive growth in Nutrition, drove our eighth consecutive quarter of year-over-year adjusted operating profit growth,” said Chairman and CEO Juan Luciano.
Ag Services and Oilseeds reported third-quarter revenue of $618 million, up from $436 million in the third quarter a year ago.
ADM said crushing had substantially higher year-over-year results, with strong demand for vegetable oil for food customers and renewable diesel.
“Our team’s great ability to leverage the favorable operating environment, and the consistent implementation of our strategic plan, have put ADM on track for a strong fourth quarter culminating in a second consecutive year of record earnings per share," Luciano said.
Year-over-year results for Carbohydrate Solutions, which includes ethanol production, were lower primarily due to higher input costs, ADM said. The segment overall generated $213 million vs. $246 million in third quarter 2020.
However, Vantage Corn Processors results were much improved year over year, supported by the resumption of production at ADM's two dry mills and improved fuel ethanol margins, particularly late in the quarter.
Vantage corn processors rebounded this year with $35 million on the plus side after losing $11 million in the third quarter of 2020.
ADM has made a series of strategic growth and portfolio announcements in recent months, including significantly enhancing its growing pet business with a 75% ownership stake in PetDine, and continuing to advance its evolution to higher-value sustainable solutions in Carbohydrate Solutions with the sale of the Peoria ethanol complex; an memorandum of understanding with Gevo, Inc. for the production of sustainable aviation fuel; and an agreement with LG Chem to explore U.S.-based production of plant-based biosolutions.
"As we look ahead, we remain optimistic in sustainable earnings growth in the medium term as we continue to execute our strategy, including the dynamic positioning of our business portfolio," Luciano said.
To read the full third-quarter report, click here.