ADM Boasts Strong First Quarter
Oilseeds Processing operating profit increased $71 million to $170 million for the quarter as improved market conditions resulted in increased operating profits in all geographic regions.
01/11/06 Archer Daniels Midland (ADM) has reported that net earnings for the quarter ended September 30, 2006 more than doubled to $403 million - $.61 per share from $186 million - $.29 per share last year. Segment operating profit for the quarter increased 85% to $648 million from $351 million last year.
Oilseeds Processing operating profit increased $71 million to $170 million for the quarter as improved market conditions resulted in increased operating profits in all geographic regions.
Corn Processing operating profit increased $154 million to $290 million for the quarter as Sweetener and Starches earnings increased $20 million to $113 million and Bioproducts earnings increased $134 million to $177 million. Increased starch, sweetener and ethanol selling prices contributed to the earnings improvement.
Agricultural Services operating profits increased $91 million to $111 million due principally to improved earnings of global grain merchandising operations and improved operating results of transportation operations. In the first quarter of fiscal year 2006, the negative impact of hurricanes decreased North American origination and export operating results.
Other segment operating profit declined $19 million to $76 million for the quarter due principally to a $31 million decline in Food, Feed and Industrial operating results. This decline was primarily due to reduced operating results of cocoa, wheat milling and natural health and nutrition operations, partially offset by a $12 million improvement in operating profit of the financial operations.
"ADM delivered near-record performance in the first quarter," said ADM Chief Executive Officer and President, Patricia A. Woertz. "Our earnings, more than double those of a year ago, reflect strong momentum in our core businesses. However, we will continue to experience the challenges of dealing with volatile commodity prices."
