Archer Daniels Midland (ADM) reported 2020 second-quarter earnings of $469 million, double the earnings of $235 million reported in the same quarter of 2019. Earnings per share were 84 cents, up from 42 cents during the same period last year.

“This was another strong quarter for ADM. I am proud of our team’s excellent work, as their execution of our strategy continued to deliver results,” ADM chairman and chief executive officer Juan Luciano said. “Through good and challenging times alike, we have kept a strong and steady focus on transforming and improving our company. Thanks to that work, and thanks to the ADM colleagues who have gone above and beyond to support our customers and the global food supply chain, we are delivering on our purpose by providing high-quality nutrition around the world.”

He continued, “We’re also living up to our ideals. From our ambitious new sustainability goals to the continued expansion of products and services to meet evolving consumer needs to the critical efforts we are all making to protect our employees and support our communities during challenging times, our team is making a positive impact."

As the company advances its strategy, Luciano said the growing benefits are flowing to the bottom line.

“Our team is exceeding the targets we’ve set for those factors under our control, and as we look at the second half of the year, we’ll continue to advance our key focus areas: optimizing business performance, accelerating readiness – which has been critical to our resilience and agility this year – and harvesting the benefits of strategic growth investments, especially in our Nutrition segment. We are in a strong position, with great momentum, and we are confident in our ability to continue to deliver strong earnings and returns in 2020 and beyond,” he said.

Results of operations

The Ag Services & Oilseeds segment delivered higher results versus the second quarter of 2019. Ag Services results were substantially better year over year.

“Strong execution in South America helped deliver record quarterly origination and export volumes in a significantly improved margin environment, driven by a weaker Brazilian real and strong farmer selling,” the company reported.

Global trade delivered another strong quarter as countries looked to secure stable supplies of food amid the COVID-19 pandemic, while lower interior grain margins affected results in North America.

According to the company, crushing was lower versus the prior-year period. South America delivered significantly higher year-over-year results in an environment of solid domestic meal demand and the weaker Brazilian real. In EMEAI, crush volumes and margins remained solid. In North America, margins were affected by COVID-19 effects on customers.

Refined Products & Other was higher year over year, driven by improved biodiesel volumes and margins in North and South America as well as strong volumes and margins in refined and packaged oils in South America. Demand was lower for biodiesel in EMEAI and for edible oils in both EMEAI and North America.

Wilmar results were lower year over year, while Carbohydrate Solutions results were similar to the year-ago quarter.

Starches & Sweeteners results were lower year over year due to the impact of lower foodservice demand in North America and market-to-market losses on corn oil contracts, which was partially offset by lower net raw material costs and strong risk management results.

Wheat milling had another strong quarter as solid retail demand and footprint optimization initiatives continued to drive results.

Vantage Corn Processors results were higher than for the second quarter of 2019, driven by favorable risk management results on inventory positions and strong demand for industrial ethanol. While average industry ethanol margins were down versus the prior year, prices and margins improved throughout the quarter as lower production -- including two idled ADM dry mills -- and some recovery in driving miles led to falling industry stocks.

Nutrition continued to deliver significant year-over-year profit growth, the company reported.

Human Nutrition results were higher versus the prior-year quarter. Flavors continued to deliver solid results as a favorable sales mix and margin expansion in North America were offset by some softness in EMEAI. Strong execution to meet rising customer demand for plant-based proteins and edible beans drove higher results in Specialty Ingredients. Health & Wellness delivered higher performance on strong sales for probiotics, improved volumes and margins in fiber and additional fermentation income.

Animal Nutrition was again higher year over year. Despite COVID-19 impacts on demand in some regions, continued execution on Neovia synergies, robust demand for pet food and treats and improvement in amino acids drove better results.