AIRLINK 194.83 Decreased By ▼ -3.14 (-1.59%)
BOP 9.81 Decreased By ▼ -0.23 (-2.29%)
CNERGY 7.36 Increased By ▲ 0.07 (0.96%)
FCCL 38.58 Increased By ▲ 2.58 (7.17%)
FFL 16.45 Decreased By ▼ -0.46 (-2.72%)
FLYNG 27.54 Increased By ▲ 2.50 (9.98%)
HUBC 131.75 Decreased By ▼ -2.28 (-1.7%)
HUMNL 13.86 Decreased By ▼ -0.28 (-1.98%)
KEL 4.66 Decreased By ▼ -0.12 (-2.51%)
KOSM 6.66 Decreased By ▼ -0.28 (-4.03%)
MLCF 45.39 Increased By ▲ 0.41 (0.91%)
OGDC 213.99 Decreased By ▼ -4.24 (-1.94%)
PACE 6.86 Decreased By ▼ -0.08 (-1.15%)
PAEL 40.06 Decreased By ▼ -1.36 (-3.28%)
PIAHCLA 16.79 Decreased By ▼ -0.07 (-0.42%)
PIBTL 8.32 Decreased By ▼ -0.14 (-1.65%)
POWER 9.43 Increased By ▲ 0.04 (0.43%)
PPL 182.19 Decreased By ▼ -3.74 (-2.01%)
PRL 41.83 Increased By ▲ 0.56 (1.36%)
PTC 24.56 Decreased By ▼ -0.21 (-0.85%)
SEARL 102.53 Decreased By ▼ -2.12 (-2.03%)
SILK 1.00 Decreased By ▼ -0.01 (-0.99%)
SSGC 39.44 Decreased By ▼ -1.47 (-3.59%)
SYM 17.33 Decreased By ▼ -0.72 (-3.99%)
TELE 8.76 Decreased By ▼ -0.15 (-1.68%)
TPLP 12.75 Decreased By ▼ -0.09 (-0.7%)
TRG 65.40 Decreased By ▼ -1.20 (-1.8%)
WAVESAPP 11.11 Decreased By ▼ -0.19 (-1.68%)
WTL 1.70 Decreased By ▼ -0.08 (-4.49%)
YOUW 3.94 Decreased By ▼ -0.06 (-1.5%)
BR100 11,988 Decreased By -121.3 (-1%)
BR30 36,198 Decreased By -400.2 (-1.09%)
KSE100 113,443 Decreased By -1598.8 (-1.39%)
KSE30 35,635 Decreased By -564.3 (-1.56%)

CHICAGO/BENGALURU: Global grain trader Archer-Daniels-Midland Co reported a jump of nearly 14% in fourth-quarter earnings on Tuesday as rising biofuel demand and strong ethanol margins helped to boost operating profit at its carbohydrate solutions division.

High energy and grain costs, however, clipped earnings at the corn-processing unit, as well as its core ag services and oilseeds segment where operating profit fell from the same quarter a year earlier.

Shares were flat in pre-margin trading.

ADM’s results offer a look into how the world’s biggest grain traders are weathering the shifts in food and fuel demand triggered by the pandemic and soaring inflation.

ADM and rival agribusinesses Bunge Ltd, Cargill Inc and Louis Dreyfus Co, together known as the ABCD quartet of grain trading giants, have benefited from rising demand for food and renewable fuel as economies reopen.

But surging prices for the grain and oilseeds ADM buys, sells, processes and ships around the globe have presented a challenge.

ADM said earnings in ag services and oilseeds, its largest unit by revenue, were propelled by strong demand for soyameal and vegetable oil. But the unit’s results were dented by about $250 million in net negative timing effects in crushing, which the company expects to recoup in the first half of 2022.

High corn and energy costs held back earnings in sweeteners and starches, but the resumption of ADM’s dry corn ethanol mills after pandemic closures helped its carbohydrate solutions unit more than double its operating profit.

ADM’s expanding nutrition unit posted stronger results.

ADM’s net earnings rose to $782 million, or $1.38 per share, in the quarter ended Dec. 31, from $687 million, or $1.22 per share, a year earlier.

Excluding one-time items, earnings of $1.50 a share topped the consensus analyst estimate of $1.37, according to Refinitiv Eikon data.

Comments

Comments are closed.