ADM Profits Soar in Q4, Expands Oilseed Crushing in Paraguay

For the quarter ended June 30, 2010, net earnings increased $ 388 million to $ 446 million, and segment operating profit increased $ 591 million to $ 799 million from the Company’s totals for the same period one year earlier.

Aug 4 2010 --- Archer Daniels Midland Company has reported net earnings of $ 1.9 billion and segment operating profit of $ 3.2 billion for the year ended June 30, 2010, up $ 246 million and $ 786 million, respectively, from the prior year. For fiscal year 2010, ADM earned $ 3.00 diluted EPS, versus $ 2.62 for the year prior.

For the quarter ended June 30, 2010, net earnings increased $ 388 million to $ 446 million, and segment operating profit increased $ 591 million to $ 799 million from the Company’s totals for the same period one year earlier.

ADM earned $ 0.69 diluted EPS for the fourth quarter, versus last year’s $ 0.09 fourth quarter.  Profit in ADM’s Oilseeds Processing segment increased $ 132 million due to improved margins and higher volumes. Corn Processing profit increased $ 151 million on stronger bioproducts results.

In the Agricultural Services segment, profit increased $ 195 million as ADM saw a good global supply of grains and oilseeds and modestly improving demand, particularly in Asia.

Other business units’ operating profit increased $ 113 million, reflecting improved results of ADM’s cocoa and flour milling operations and of equity investee Gruma S.A.B. de C.V.

“The ADM team finished strong, capping a very good year with very good fourth-quarter performance,” said Chairman of the Board and Chief Executive Officer Patricia Woertz. “As we begin our new fiscal year, our large projects are nearly finished, and we commit to use our strong balance sheet and cash flow to deliver shareholder value.”

Meanwhile ADM announced that it will increase its South American oilseed crush capacity by more than 25 percent with the construction of a major new soybean plant in Paraguay.

The new plant, with an anticipated daily crush capacity of 3,300 metric tons, will be located adjacent to an ADM fertilizer-blending plant in Villeta, near the capital city of Asuncion, and will benefit from proximity to a nearby port facility on the Paraguay River. This location will increase local crop-origination and export capacity and enable the company to import fertilizer components more cost-effectively. Construction began in June and is expected to be complete in 2012.

The project will create more than 150 permanent jobs, as well as an estimated 500 jobs at peak construction.

The plant is part of ADM’s strategy to increase crop-sourcing and processing capacity in South America’s key growing regions.  Soybean production in Paraguay has been growing at an annual rate of 13 percent for the past 10 years.

“This plant will link South America’s productive farmers with the world’s growing demand for food and energy,” said John Rice, executive vice president, Commercial and Production. “ADM will grow oilseed crush volumes over the next five years at about double predicted market rate. We will achieve a compound annual growth rate of 7 to 10 percent through both organic growth and acquisitions.”