ADM releases 2017 results, expects increased ethanol exports

By Erin Voegele | February 07, 2018

On Feb. 6, Archer Daniels Midland Co. released fourth quarter financial results, reporting segment operating profit of $733 million, down from $803 million during the same quarter of 2016. Earnings per share reached $$1.39, up from 73 cents during the fourth quarter of last year.

The corn processing segment reported profit of $261 million, up from $255 during the same period of last year. ADM said that sweeteners and starches had a strong quarter with solid earnings growth. Bioproducts, however, experienced lower year-of-year results due to lower ethanol margins, which were partially mitigated by favorable risk management. Bioproduct profits fell to $76 million, down from $99 million during the same period of last year.

For the full year, ADM reported segment operating profit of $2.536 billion, down from $2.704 billion in 2016. The corn processing segment reported profit of $909 million, up from $761 million, with bioproducts reaching $163 million, up from $106 million.

During an investor call, Juan Luciano, president and CEO of ADM, noted the company sees some uncertainty for 2018 with regard to ethanol margins. He also stressed that ADM is encouraged about the demand side of ethanol, particularly from exports, and expects to see increased exports to China and Brazil this year.