ADM Quarterly Earnings Per Share Double

OMAHA (DTN) -- Global commodity giant ADM on Tuesday reported third-quarter profits of $1.56 billion, up nearly 56% from the same quarter a year ago, with earnings per nearly doubled from last year.

Earnings per share came in at $1.83 compared to 93 cents for the same quarter in 2021.

On an adjusted basis related to gains of certain assets, ADM reported adjusted segment profit at $1.58 billion and earnings per share at $1.86. The earnings were based on the quarter ending Sept. 30.

"I'm proud of our team for delivering yet another quarter of strong results by supporting the global food system and providing needed nutrition to billions," said Chairman and CEO Juan Luciano. "Global demand remains robust, and our adjusted EPS of $1.86 is a reflection of our team's expertise in managing dynamic market conditions, as well as the unique benefits of our integrated global value chain and our product portfolio"

Luciano pointed to the company's global footprint and "array of innovative capabilities" that led to higher financial performance. Luciano said, "We're well positioned to end 2022 strong, and carry that momentum into 2023."

Profits on the agricultural side "were significantly higher than the third quarter of 2021. Ag Services and Oilseed profits came in at $1.075 billion, a $475 million bump compared to 2021. ADM cited, "The short crops in South America supported U.S. exports, driving improved volumes and margins in North American origination," compared to last year when the end of the quarter was negatively impacted by Hurricane Ida hitting the Gulf region in August 2021.

ADM also cited, "Better margins in global ocean freight, driven by good execution amid dynamic global trade flows, powered better results in global trade." South America also saw improved volumes and margins and farmers increases selling and ADM saw higher volumes running through its South American export facilities as well."

For the first three quarters of the year, ADM's Ag Services and Oilseeds generated $3.2 billion in profit, an increase of $1.237 billion from the first three quarters of 2021.

CRUSH MARGINS HIGHER

ADM pointed to "resilient global demand for both meal and oil" driving its crush margins higher. North American soy crush margins continued to benefit from renewable diesel demand. Rapeseed margins were also higher in Europe, the Middle East and Africa. ADM also stated, "Positive results were partially offset by lower crush volumes, including impacts from idled facilities in Ukraine and Paraguay."

ETHANOL MARGINS LOWER

ADM cited that Vantage Corn Processors -- its ethanol subsidiary -- saw margins pressured by lower domestic demand and higher corn costs. Vantage Corn Processors also saw lower numbers because of a facility sold in Peoria. Vantage came in at an $18 million loss for the quarter.

Still, ADM saw robust demand for corn co-products, including coil oil. Wheat milling also had a strong quarter with higher volumes and margins with a healthy demand for flour.

In total, ADM's Carbohydrates segments generated $309 million in profit for the quarter, a $96 million increase over 2021.

PLANT-BASED PROTEINS

In its Human Nutrition area, ADM reported strong demand for plant-based proteins, as well as texturants, that increased growth in areas such as special ingredients. Strong demand in Europe, the Middle East and Africa offset "adverse currency translation" in those regions. Demand was lower in the Asian Pacific areas "driven partly by lockdowns in China," ADM stated.

Human nutrition profits were up $7 million for the quarter to $146 million.

Animal nutrition saw a quarterly profit of $31 million, but that was a $6 million decline from 2021. Pet results were lower in Latin America, but ADM still saw strong volumes and margins in North America.

TOTAL REVENUE

ADM Generated $24.68 billion in revenue for the quarter, up $4.34 billion from 2021. For the first nine months of the year, revenues topped $75.617 billion, up $13.458 over the same nine-month stretch of 2021.

Chris Clayton can be reached at Chris.Clayton@dtn.com

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