(Reuters) - U.S. grains merchant Archer Daniels Midland Co (ADM.N) on Tuesday reported a 16 percent increase in quarterly profit on higher margins from soybean processing and a significant boost in global trade volumes, sending its stock price to a 52-week high in premarket trading.
ADM has been trying to diversify into higher-margin sectors, such as food ingredients and aquaculture feed, to compensate for the poor returns on their traditional grain handling businesses.
Revenue from its oilseed business, which makes up 36 percent of its overall revenue, rose 7.8 percent to $5.63 billion.
This is the first quarter to reflect the new business segments since ADM completed the restructuring of its business units in March.
Net profit attributable to ADM rose to $393 million, or 70 cents per share, in the first quarter, from $339 million, or 59 cents, a year earlier.
Total revenue rose 3.6 percent to $15.53 billion.
Reporting by Akshara P in Bengaluru and P.J. Huffstutter in Chicago; Editing by Amrutha Gayathri and Steve Orlofsky
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