(Reuters) – Archer-Daniels-Midland Co on Thursday reported upbeat fourth-quarter profit and said it will raise its dividend payments, as the global grains merchant benefited from tight global supply and hefty demand for grain and oilseeds.
The strong quarterly performance followed record third-quarter earnings as tight supply and strong demand for food, feed and biofuel propelled results for the Chicago-based agribusiness.
ADM and agribusiness rivals including Bunge Ltd, Cargill Inc and Louis Dreyfus Co make money processing, trading, and shipping crops around the world. Supply chain middlemen such as ADM tend to thrive when crises such as droughts or war trigger shortages in parts of the world.
ADM said the adjusted operating profit from its Ag Services and Oilseeds segment, its largest in terms of revenue and volumes, rose to $1.18 billion from last year’s $810 million.
It also raised its quarterly dividend by 12.5% to 45 cents.
The company’s adjusted net earnings stood at $1.1 billion, or $1.93 per share, for the three-month period ended Dec. 31, compared with analysts’ estimate of $1.65 per share, according to Refinitiv data.
(Reporting by Sourasis Bose in Bengaluru and Karl Plume in Chicago; Editing by Sherry Jacob-Phillips)
