ADM Net Earnings Up
Segment operating profit for the quarter increased 23% to $ 797 million from $ 648 million last year. Oilseeds Processing operating profit increased on improved margin conditions, due to strong global protein and oil demand.
07/11/07 Archer Daniels Midland has said that net earnings for the quarter ended September 30, 2007 increased $ 38 million to $ 441 million - $ .68 per share from $ 403 million - $ .61 per share last year. “ADM delivered record first quarter earnings,” said Chairman and CEO Patricia A. Woertz. “These exceptional results demonstrate the strength of ADM’s diversified asset and product portfolio. Where excellent first quarter earnings of a year ago reflected steep growth in the ethanol market, our record first quarter earnings this year demonstrate our strengths in sweeteners & starches, oilseed processing and our global capabilities in grain merchandising and handling. With our unique business model, spanning diverse markets, we are capturing value from changing market conditions.”
Segment operating profit for the quarter increased 23% to $ 797 million from $ 648 million last year. Oilseeds Processing operating profit increased on improved margin conditions, due to strong global protein and oil demand. Corn Processing operating profit declined due to lower ethanol sales prices and volumes and higher net corn costs. Last year’s Bioproducts results reflect the positive impact on ethanol volumes and prices of the phase out of MTBE. Agricultural Services operating profit increased due to improved global grain merchandising and handling results.
Net sales and other operating income increased 36 % to $ 12.8 billion. Increased selling prices resulting from sharp rises in commodity prices accounted for approximately 75 % of the increase while higher sales volumes, principally vegetable oil and wheat, accounted for the remaining 25 % increase.
Net earnings increased $ 38 million due principally to a $ 149 million increase in segment operating profits partially offset by increased corporate charges related principally to LIFO inventory valuations and costs associated with the realignment of our organizational structure. In addition, income taxes increased due primarily to the increased pretax earnings and to a higher effective tax rate resulting from changes in the geographic mix of earnings.
Oilseeds Processing operating profit increased $ 39 million to $ 209 million from $ 170 million last year due principally to strong global demand for protein meal and oil. Worldwide crush volumes increased 2.4% to 7.2 million metric tons. Crushing and origination results increased $ 27 million due principally to better crush margins in North America and improved origination results in South America partially offset by a reduction in crush margins in Europe. Value added refining, packaging and biodiesel results increased $ 13 million principally from improved refining volumes and margins. Fiscal year 2008 results include asset abandonment charges of $ 3 million.
Corn Processing operating profit decreased $ 36 million to $ 253 million from $ 289 million last year due principally to lower ethanol sales prices and volumes and higher net corn costs which were partially offset by favorable risk management results. Sweeteners and Starches operating profit increased $ 45 million to $ 164 million on higher average sweetener and starch selling prices partially offset by higher net corn costs. Bioproducts results declined $ 81 million to $ 89 million due principally to higher net corn costs and lower ethanol selling prices and volumes. Last year’s Bioproducts results reflect the positive impact on ethanol volumes and prices of the phase out of MTBE.
