Happy hour came early on Tuesday for Archer Daniels Midland with an epic 4th quarter earnings announcement.
The U.S. agrigiant noted revenue jumping 10.1% to nearly $17.98 billion while profits soared +36%. A shaky 2020 ended on a high note for the company despite lingering pandemic market dynamics, volatile commodity prices, and a mischievous Mother Nature.
So what led to the big gains?
→ Record-speed soybean processing crushed volume expectations while margins flexed.
→ Record-large U.S. crop exports [China wants all the corn] were very positive for the grain trader.
→ Record-high hand sanitizer sales plus the quarantine baking trend boosted the carbohydrate segment.
Talk about record-setting…
What’s ahead: ADM sees more green in its future. CEO Juan Luciano feels bullish, noting, “Based on the continued delivery of drivers under our control and improving market conditions as the year progresses, we expect strong growth in segment profit and another record year of earnings per share in 2021.”