Archer Daniels Midland Co. reported quarterly profit higher than expected, but lower revenue.
The favorable profits — $493 million, or 77 cents per share, up from $267 million, or 40 cents per share — were credited to strong oilseed crushing margins and robust global demand for soybean meal.
Revenue was down 15 percent to $17.51 billion from $20.70 billion a year ago as the strong dollar limited U.S. grain exports and profit from corn processing fell on weak ethanol margins and lower biofuel production volumes.
Earnings, excluding one-time items, increased to 80 cents per share from 64 cents per share a year ago.
The company’s agricultural services business saw a net profit of $194 million, up from $142 million a year ago. Oilseeds processing profit rose 58 percent to $469 million from $297 million a year ago. Corn processing profit was down 39 percent to $113 million.
New feed plants in Minnesota, China
ADM said it is building a new feed premix plant in Zhangzhou, China, and a new feed plant in Glencoe, Minnesota.
The China plant will manufacture nutritional feed premixes that can be added to animal rations to promote good health and optimal growth. The plant is expected to be complete in the fourth quarter of 2016.
The Minnesota plant, expected to be complete in the first quarter of 2016, will be able to manufacture 80,000 metric tons of products per year to serve customers in Minnesota, Wisconsin and Iowa.
Full ownership of Black Sea terminals
Also this week, ADM said it will acquire complete ownership of North Star Shipping and Minmetal, which will enhance the company’s European origination and transportation network through the addition of export facilities at the Romanian Port of Constanta on the Black Sea.
UPDATE 1-ADM 1st-qtr profit jumps on strong oilseed processing results
ADM to Construct Feed Plants in China and Minnesota
ADM to Acquire Full Ownership of Black Sea Export Terminals