On Aug. 1, Archer Daniels Midland Co. released second quarter financial results, reporting improved ethanol margins. During an investor call, the company also announced plans to reconfigure an ethanol plant in Illinois.

Juan Luciano, president and CEO of ADM, said ethanol margins improved significantly during the quarter due to lower production costs and increased industry exports. Moving into the third quarter, Luciano said ethanol margins are expected to continue to improve when compared to the second quarter due to seasonal demand. With high industry inventory entering the third quarter, he said the company will probably run its plants to maximize yield.

Luciano also briefly discussed plans to reconfigure ADM’s ethanol complex in Peoria, Illinois, “to focus on the more profitable higher-grade industrial and beverage alcohol and also export fuel.” He said the change will reduce the company’s ethanol capacity by more than 100 million gallons. “We will also have a more simplified production process for the Peoria complex,” he said.

Overall, ADM reported net earnings of $276 million, with adjusted earnings per share up 39 percent over the same quarter of last year. The bioproducts segment reported $26 million in operating profit, compared to an operating loss of $19 million during the same period of last year.