Archer Daniels Midland (ADM) is in the middle of a winning streak. This week the agricultural commodities giant reported its financial results for the second quarter of its 2014 fiscal year, boasting net earnings of $533 million and adjusting its earnings per share to $0.77, up 67 percent compared to its $0.46 EPS during its second quarter last year.
ADM also reported an adjusted segment operating profit of $819 million, a 32 percent increase compared to last year’s adjusted operating profit of $621 million.
While ADM has a hand in several processing industries, its progress in this quarter can be attributed to the food production industry in no small part. According to ADM’s report, income from corn processing increased by $69 million this year due to increased demand for both ethanol and sweeteners like high fructose corn syrup. Profit from oilseeds also saw an $18 million increase due to impressive soybean and canola production and margins, particularly in North America. If these crops increase, as experts predict that they could, ADM could see even stronger returns on its year-end report.
“In the second quarter, the ADM Team continued to execute very well and delivered strong results. We capitalized on robust ethanol demand, a recovery of U.S. grain export volumes and continuing strong demand for oilseeds products,” said ADM Chairman and CEO Patricia Woertz in a statement from the business. “The Team also continues to drive improved returns, with this quarter’s ROIC showing a 200-basis-point improvement over last year. Today, the crops in North America are developing nicely, so we are preparing for what could be very large harvests.”
Check out the full report here: http://www.adm.com/LISTS/PRESSRELEASE/ATTACHMENTS/595/ADM%20Q214%20EARNINGS%20RELEASE.PDF