LONDON (ICIS)--Archer Daniels Midland (ADM) net income for the second quarter of 2014 more than doubled year on year to $533m on the back of strong ethanol demand, a recovery of US grain exports and good demand for oilseeds products, the US commodities firm said on Tuesday.
The jump in net income is also related to the base it was coming from. In the second quarter of 2013, ADM reported a 21% fall in net income on the back of an inventory charge and foreign currency hedging losses related to its acquisition of Australia’s GrainCorp.
The company's second-quarter 2014 sales fell by 4.6% to $21.5bn year on year.
ADM’s shareholders will receive diluted earnings per share (EPS) of $0.81, compared to $0.34 in the second quarter of 2013.
The company is optimistic about the remaining months of 2014 and said it expects large harvests both in North America and Europe.
“[In Q2] We capitalised on robust ethanol demand, a recovery of US grain export volumes and continuing strong demand for oilseeds products,” said ADM CEO Patricia Woertz.
“Today, the crops in North America and Europe are developing nicely, so we are preparing for what could be very large harvests,” she added.