Archer Daniels Midland Co. doubled its net profit in the second quarter and beat analysts’ expectations, partly because of the U.S.–China trade war, says a report at The Epoch Times.
ADM is among the companies that have strongly opposed President Donald Trump’s tariffs. Yet in the second quarter, the operating profit for ADM’s origination business, which includes grain trading, more than tripled from a year ago, reaching $189 million.
ADM’s shares rose by 5% in three days after the earnings release, to reach a three-year high.
“I sort of think this tariff is good for you,” Morgan Stanley analyst Vincent Andrews told ADM’s executives during an earnings call.
ADM’s biggest rival, Cargill Inc., also has benefited from trade tensions.
Cargill, America’s largest privately held company, saw its profit more than double in the most recent quarter. Its yearly net income also grew for the third consecutive year.
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