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Shares jumped 3% in pre-market trading.
Grain supply-chain middlemen like ADM and its peers have seen
increased demand for crops they ship around the world as the
Ukraine war cut off shipments from the breadbasket region around
the Black Sea. The war exacerbated already thin supplies of
grain and oilseeds after weather-reduced crops in South America
and other key production areas.
"We expect the combination of our strategic actions and
continued good demand for our products to propel very strong
earnings in the second half of 2022," Chief Executive Officer
Juan Luciano said.
Adjusted operating profit in ADM's core agricultural services
and oilseeds unit rose to $1.12 billion from $570 million last
year. The unit's North American results fell from last year,
though ADM said export volumes were strong. South American
results were higher.
"Global trade had an outstanding quarter," the company said.
ADM has predicted that global supplies of key crop staples will
remain tight for at least two years amid shipping disruptions
from the war.
The first shipments of Ukrainian grain could leave Black Sea
ports within days under a U.N.-brokered deal, though, the United
Nations and Ukraine said on Monday, raising some expectations
for supply increases.
Net quarterly earnings attributable to ADM were $1.24 billion,
or $2.18 per share, in the three months ended June 30, compared
with $712 million, or $1.26 per share, a year earlier.
The company said robust demand for alternative proteins helped
drive a 19% rise in operating profit in its nutrition business.
(Reporting by Rithika Krishna in Bengaluru and Tom Polansek in
Chicago; Editing by Vinay Dwivedi and Mark Potter)
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