ADM Get Through "Challenging Quarter"
Net earnings for the quarter ended March 31, 2007 were $ 363 million, or $ .56 per share, compared to $ 348 million, or $ .53 per share, last year. Net earnings for the nine months ended March 31, 2007 were $ 1.2 billion, or $ 1.83 per share.
02/05/07 Archer Daniels Midland (ADM) has said that net earnings for the quarter ended March 31, 2007 increased 4% to $ 363 million - $ .56 per share from $ 348 million - $ .53 per share last year. Net earnings for the quarter ended March 31, 2007 includes a gain of $ 33 million realized on the sale of the Company’s Arkady food ingredient business.
“We performed well in a challenging quarter,” said ADM Chairman and CEO Patricia A. Woertz. “We are particularly pleased with continued strong performance in our corn processing segment. Our results also benefited from actions to strategically align our portfolio and our outlook on future opportunities remains quite strong.”
Third quarter segment operating profit increased 8 % to $ 593 million from $ 549 million last year.
Net earnings for the quarter ended March 31, 2007 were $ 363 million, or $ .56 per share, compared to $ 348 million, or $ .53 per share, last year. Net earnings for the nine months ended March 31, 2007 were $ 1.2 billion, or $ 1.83 per share, compared to $ 902 million, or $ 1.38 per share, last year.
Segment operating profit increased $ 44 million to $ 593 million for the quarter and increased $ 584 million to $ 2 billion for the nine months.
Oilseeds Processing operating profits decreased $ 8 million to $ 169 million for the quarter and increased $ 126 million to $ 530 million for the nine months. Improved gross margins in all geographic regions for the nine months contributed to the increase although the current quarter declined on reduced softseed and biodiesel processing margins. Results for the quarter and nine months ended March 31, 2006 included a $4 million charge for abandonment and write down of long lived assets.
Corn Processing operating profits increased $ 33 million to $ 252 million for the quarter and increased $ 286 million to $ 878 million for the nine months. Lower operating costs and increased starch, sweetener and ethanol selling prices contributed to the earnings improvement and were partially offset by increasing net corn costs. Fiscal 2006 third quarter results included a gain of $ 8 million upon the sale of a citric acid plant. Fiscal 2006 nine months included a charge of $ 14 million (net of the $ 8 million gain) related to the closure of this citric acid plant.
Agricultural Services operating profits decreased $ 38 million to $ 41 million for the quarter due to a $ 39 million decrease in global merchandising and handling results. For the nine months, operating profits increased $ 82 million to $ 275 million due principally to improved earnings of global merchandising and handling operations and improved operating results of transportation operations.
Other segment operating profit increased $ 57 million to $ 132 million for the quarter and increased $ 89 million to $ 325 million for the nine months principally due to a gain of $ 53 million realized upon the sale of the Company’s Arkady food ingredient business. Fiscal 2006 third quarter and nine month results included $ 15 million of cost related to the sale and discontinuance of the Irish feed business. Results for the nine months ended March 31, 2006 also included a $ 32 million asset impairment charge.
