# ADM beats profit estimates as Ukraine crisis stokes crop shortages Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2022-04-26 Category: NEWS Category URL: https://financedigest.com/category/news Meta Title: ADM reports higher profit amid global grain supply concerns Meta Description: Archer-Daniels-Midland Co's quarterly profit beats expectations on high demand from importers due to reduced harvests. Tight grain supplies forecast. URL: https://financedigest.com/adm-beats-profit-estimates-as-ukraine-crisis-stokes-crop-shortageshtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/2022-04-26t111408z3lynxnpei3p0girtroptp4archer-daniels-results-1736815825254-compressed.jpg) By Karl Plume and Ruhi Soni (Reuters) -Global grain trader Archer-Daniels-Midland Co reported a higher-than-expected quarterly profit on Tuesday on higher demand from importing nations amid reduced harvests in key breadbasket regions and global food supply concerns after Russia’s invasion of Ukraine. Chicago-based ADM said tight grain inventories would persist “for the next few years” and forecast 2022 profit would top the company’s record performance last year. [Shares rose 3.5% in premarket trading](https://www.financedigest.com/social-trading-is-the-new-way-that-gen-z-are-getting-their-share-of-the-pie.html "Social Trading is The New Way That Gen Z Are Getting Their Share of The Pie"). ADM’s results highlighted how global grains [merchants have weathered](https://www.financedigest.com/how-digital-commerce-merchants-can-weather-the-economic-storm.html "How Digital Commerce Merchants Can Weather the Economic Storm") surging inflation and supply chain disruptions caused by the war. Ukraine and [Russia supply](https://www.financedigest.com/exclusive-kazakh-mcdonalds-shut-outlets-temporarily-after-halting-supplies-from-russia-sources.html "Exclusive-Kazakh McDonald’s shut outlets temporarily after halting supplies from Russia – sources") nearly a third of world wheat exports, a fifth of globally traded corn and 80% of sunflower oil. We expect reduced crop supplies – caused by the weak Canadian canola crop, the short South American crops, and now the disruptions in the Black Sea region – to drive continued tightness in [global grain markets for the next few years,” Chief Executive Officer](https://www.financedigest.com/black-panther-sequel-ignites-box-office-with-330-million-global-debut.html "‘Black Panther’ sequel ignites box office with 0 million global debut") Juan Luciano said. Grain supply chain middlemen like ADM and rivals Bunge Ltd, Cargill Inc and [Louis Dreyfus](https://www.financedigest.com/crop-merchant-louis-dreyfus-gets-profit-boost-in-volatile-year.html "Crop merchant Louis Dreyfus gets profit boost in volatile year") Co, known as the ABCDs of global grain, tend to thrive when crises such as droughts or war trigger shortages in parts of the world. Operating profit in ADM’s Ag Services and Oilseeds segment, its largest in terms of revenue, [jumped 30% in the quarter on strong](https://www.financedigest.com/indias-tata-motors-jumps-to-a-7-month-high-on-strong-q4-jlr-sales.html "India’s Tata Motors jumps to a 7-month high on strong Q4 JLR sales") trading results and improved oilseed processing margins in every geography apart from China. In Carbohydrate Solutions, which includes corn processing and ethanol, [operating profit was up 20%](https://www.financedigest.com/ubisoft-vows-to-get-back-to-operating-margin-above-20-in-medium-term.html "Ubisoft vows to get back to operating margin above 20% in medium term"). Nutrition unit [profit rose](https://www.financedigest.com/zur-rose-delays-profitability-break-even-to-2024.html "Zur Rose delays profitability break-even to 2024") 23%. Net earnings attributable to ADM jumped 53% to $1.05 billion, or $1.86 per share, in the first quarter [ended March](https://www.financedigest.com/tennis-panic-attack-ends-tsurenkos-indian-wells-as-raducanu-marches-on.html "Tennis-Panic attack ends Tsurenko’s Indian wells, as Raducanu marches on") 31, from a year ago. Excluding items, the company earned $1.90 per share, beating [Wall Street](https://www.financedigest.com/weary-wall-street-cheers-improved-consumer-confidence.html "Weary Wall Street cheers improved consumer confidence") expectations of $1.41, as per Refinitiv data. Revenue rose by about a [quarter to $23.65 billion](https://www.financedigest.com/rheinmetall-wins-quarter-billion-euro-order-for-e-vehicle-parts.html "Rheinmetall wins quarter-billion euro order for e-vehicle parts"), above analysts’ average estimate of $20.80 billion. (Reporting by Ruhi Soni in Bengaluru and Karl Plume in Chicago; Editing by Maju Samuel and Bernadette Baum) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---