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Investing.com – Archer-Daniels-Midland (NYSE:ADM) stock fell 1% Tuesday as strong demand for corn in China and a robust performance in crushing boosted total revenue by 41%, to $22.93 billion, and the company forecast a “very strong full-year outlook.”
The world’s most populous country imported more corn to cool down local prices.
China has long restricted the import of corn via a system of low-tariff quotas, historically totaling around 7 million tons annually, according to Reuters.
The surge in benchmark Dalian corn prices last year, however, outstripped international prices so much that traders could still import, pay the full tariff and make a profit, Reuters said.
Crushing had substantially higher year-over-year sales. The business executed well in an environment of strong vegetable oil demand to deliver higher execution margins in North American soy and EU softseeds, the company said.
Sales of refined products were significantly higher than the same period last year, driven by continued recovery in foodservice as economies reopened. Sweetener volumes were higher, reflecting the beginnings of a recovery in demand from the foodservice channel.
In North America and EMEA, the flavors business delivered strong volumes and improved product mix, particularly in the beverage segment. In health and wellness, probiotics saw stronger sales and margins.
Adjusted earnings per share rose to $1.33 from 85 cents in the same quarter a year ago, surpassing the estimate of $1.02.
