May 24, 2024

Profit Rises 37% at Archer Daniels

The company posted earnings of $578 million, or 86 cents a share, compared with $421 million, or 65 cents a share, a year earlier. The performance met analysts’ expectations.

Revenue climbed 33 percent, to $20.08 billion, topping Wall Street expectations for $16.88 billion.

The health of Archer Daniels Midland provides a snapshot for agribusiness as a whole because it operates in almost every sector of the business as both a buyer and seller of commodities.

The company reported higher operating profit across its segments. Its corn processing unit includes its network of ethanol plants, while its agricultural services unit includes grain trading.

Archer Daniels does not break out its ethanol results but said its profit climbed $99 million, to $158 million, for its bioproducts division, which includes ethanol and food additives like lysine.

Operating profit in the agricultural services segment rose $6 million, to $171 million, amid volatile commodity markets, regional instability in the Middle East and Japan’s earthquake and tsunami.

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