ADM’s Q2 Earnings Strong on Corn Ethanol, Sweeteners
After posting losses in three of the last six quarters, Archer Daniels Midland (ADM) posted strong results that exceeded expectations for Q2 due to healthy margins for corn ethanol and sweeteners, offsetting disappointing returns for soybean processing.
ADM’s corn processing segment profit was lifted by 37 percent for Q2 compared to soybean processing which fell by 12 percent.
ADM and its rival ABCD companies - Bunge, Cargill, and Louis Dreyfus - have been undertaking strategic maneuvers to weather ongoing negative market conditions brought about by multiple years of bumper grain crops and low commodity prices.
ADM also recently announced that it was re-configuring its ethanol dry mill in Peoria, Illinois, (one of seven plants that ADM placed on the market last year without a buyer) to produce industrial and beverage alcohols that would provide better margins while broadening the company’s export business.
The company also appointed Ian Pinner as the new chief growth officer. Pinner will be responsible for focusing on ADM’s portfolio of value-added products and ingredients segment.