ADM profit increases in second quarter due to strong demand for grains

ADM profit increases in second quarter due to strong demand for grains

Jul 27 (Reuters) – Archer-Daniels-Midland Co reported a nearly 52% rise in profits on Tuesday as high grain export volumes and oilseed processing margins boosted the US operator’s core agro-industrial business.

The lifting of restrictions due to the pandemic should benefit companies such as ADM and its rivals Bunge Ltd, Cargill Inc and Louis Dreyfus Co, the four largest grain intermediaries in the world.

Net earnings attributable to ADM rose to $ 712 million, or $ 1.26 per share, in the three months ended June 30. That compares with a profit of $ 469 million, or 84 cents per share, reported in the same period last year.

ADM’s revenue in the second quarter climbed 40.5% to $ 22.92 billion, above Wall Street estimates of $ 18.64 billion, according to Refinitiv IBES.

(Report by Arunima Kumar in Bengaluru. Edited in Spanish by Marion Giraldo)

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