Archer Daniels Midland Co’s (ADM.N) quarterly profit beat Wall Street estimates by a wide margin, driven by higher returns from its oilseeds processing business.
Profit in the business jumped 70 percent to $341 million in the second-quarter due to strong demand for soybean meal.
With roughly half of its $14.1 billion global oilseed crushing business based in North America, ADM has also been benefiting from strong processing margins at home.
Nutrition business profit rose about 21 percent to $114 million.
Net profit attributable to ADM rose to $566 million, or $1 per share, in the second quarter ended June 30, from $276 million, or 48 cents, a year earlier.
Excluding items, the company earned $1.02 per share, beating analysts’ estimates of 77 cents per share, according to Thomson Reuters I/B/E/S.
Total revenue rose 14.2 percent to $17.07 billion.
The company’s shares were up 2.4 percent in light premarket trading on Tuesday.
Source: Reuters
