October 25, 2022
BY Erin Voegele
Archer Daniels Midland Co. released third quarter financial results on Oct. 25, reporting significantly higher results for its Carbohydrate Solutions business segment despite reduced ethanol margins.
The Carbohydrate Solutions segment, which includes both the Starches and Sweeteners and Vantage Corn Processors subsegments, reported $309 million in operating profit for the three-month period, up from $213 million reported for the third quarter of 2021.
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ADM’s Starches and Sweeteners subsegment includes ethanol production from the company’s wet mills. The subsegment reported $327 million in operating profit for the third quarter, up from $178 million last year. ADM said steady global demand for sweeteners and starches contributed to the improved results, along with continued robust demand for corn oil.
Vantage Corn Processors, which includes ADM’s dry mill facilities, reported a $18 million loss for the third quarter, compared to $35 million in operating profit reported for the same period of 2021. The company said ethanol margins during the three-month period were pressured by lower domestic demand and elevated corn costs. Third quarter 2021 results also included contributions from the now-sold facility in Peoria, Illinois.
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Moving into the fourth quarter, ADM Chief Financial Officer Vikram Luthar said the company expects results for the Carbohydrate Solutions business segment to be down significantly when compared to last year. While demand for sweeteners and starches is expected to remain healthy, ethanol margins are expected to be substantially lower than last year’s historic highs, he said.
Overall, ADM reported $1.56 billion in segment operating profit for the third quarter, up from $1 billion during the same period of last year. Earnings per share were at $1.83, up from 93 cents during the third quarter of 2021.
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