Archer Daniels Midlands Co. released first quarter financial results on April 25, reporting its ethanol operations were impacted by low margins during the three-month period. Despite continued volatility, the outlook for ethanol may be improved later in the year.
ADM&rsquo;s Carbohydrate Solutions business segment reported $273 million in operating profit for the first quarter, down from $317 million during the same period of last year. The Starches and Sweeteners subsegment reported $307 million in operating profit, down slightly from $316 million during the first quarter of last year. Vantage Corn Processors reported a $34 million loss, compared to a $1 million in operating profit during the first quarter of 2022.
According the company, ethanol margins for the first quarter, pressured by high industry stock levels, were down relative to the first quarter of 2022. The impact of those low margins primarily impacted the Vantage Corn Processors subsegment, which includes ADM&rsquo;s dry mill facilities.
Vikram Luthar, chief financial officer of ADM, said the company expects ethanol margins to improve during the second quarter, but continue to remain below last year&rsquo;s margin levels.
Luthar also noted that ethanol remains the most volatile part of ADM&rsquo;s portfolio. Despite continued low margins during the first half of 2023, Luthar said the company is more constructive about the outlook for ethanol during the remainder of the year. He cited falling ethanol stock levels, high export demand for ethanol, higher blending rates, and strong gasoline demand as some factors contributing to this outlook.
Overall, ADM reported $1.72 billion in segment operating profit for the first quarter, up from $1.54 billion during the same period of 2022. Net earnings attributable to ADM reached $1.17 billion, up from $1.05 billion. Earnings per share reached $2.12, up from $1.86, with adjusted earnings per share at $2.09, up from $1.90.
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Archer Daniels Midlands Co. released Q1 financial results on April 25, reporting its ethanol operations were impacted by low margins during the period. Despite continued volatility, the outlook for ethanol may be improved later in the year. 

ADM expects improved outlook for ethanol in late 2023

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