Risk management tools for commodities bring strong gains to ADM 3Q

By Lindsey Partos

- Last updated on GMT

Related tags: Profit, Maize, Wheat, Adm

Risk management tools benefiting from volatile commodity markets
bring strong gains to US ingredients giant ADM in the latest
quarter, but profit for starch and sweeteners impacted by higher
corn prices.

The Illinois-based firm, that sells a range of ingredients from vegetable oils to starches, said earnings rose to $517 million, or 80 cents per share, in the third quarter ended March 31, from $362.9 million, or 56 cents per share, a year earlier. ADM's agricultural services unit, that trades, stores and transports grain, saw results soaring to a triple digit $320 million, rising from $46 million for the same period in 2007. Volatile markets, that have sent prices for wheat, soybean and corn commodities spiralling upwards in recent months, created "unprecedented'" profit opportunities, Chief Executive Officer Patricia Woertz said in the statement. "Once again, our team leveraged our financial flexibility and global asset base to capture those opportunities," she added. Such gains offset the impact of higher costs for the firm's corn processing unit, that produces sweeteners, starches and bioproducts: a unit affected by "increased net corn and manufacturing costs, principally energy," said ADM. Operating profit for sweeteners and starches fell $34 million to $98million for the three months ended March 31. Confirmation that price rises continue to be passed down the supply chain in light of unprecedented costs for food evident with ADM reporting "sweeteners and starches selling prices increased for the quarter." The firm added that the rise in price had helped to negate and 'partially offset' some of the higher costs in the unit. Operating profit at ADM's oilseed processing business profits grew by $52 million, to $237 million, on the back of greater demand for protein meal and vegetable oil, reported the food processor. In addition, 'favorable risk management results' in wheat and malt boosted figures for wheat, cocoa and malt operations, the company reported, with operating profit for the unit increasing $8 million for the quarter to $90 million.

Related news

Related products

show more

Boundary-pushing beverages

Boundary-pushing beverages

Cargill | 20-Apr-2021 | Sponsored Link

Increasingly, consumers are relying on beverages to satisfy needs beyond thirst – resulting in an omnipresence that's pushing boundaries in beverage...

Sustainably sourced. Naturally versatile.

Sustainably sourced. Naturally versatile.

DuPont Tate & Lyle | 13-Apr-2021 | Insight Guide

Zemea® USP-FCC propanediol is a 100% plant-based alternative to petroleum-based glycols. Used as a flavor carrier, processing aid and humectant, this ingredient...

Quinoa syrup, a refreshing option to rice syrup

Quinoa syrup, a refreshing option to rice syrup

Faravelli Inc, food ingredients distributor - North America | 24-Mar-2021 | Product Catalog

Quinoa syrup by Naturis is a 100% natural alternative to rice syrup, ideal for balanced vegan diets.

low in fructose
with lysine...

Related suppliers

Follow us

Products

View more

Webinars