ADM Reports Drop in Profits
For both the quarter and year, higher selling prices resulting primarily from sharp rises in underlying commodity costs accounted for approximately 90 % of the increase while higher sales volumes.
11/08/08 ADM has reported that net earnings for the fourth quarter decreased $ 583 million to $ 372 million - $ .58 per share from $ 955 million - $ 1.47 per share last year. Net earnings for the quarter ended June 30, 2007 includes after-tax gains on asset sales of $ 616 million - $ .95 per share. Net sales and other operating income increased 78 % to $ 21.8 billion for the quarter ended June 30, 2008, due principally to higher average selling prices resulting primarily from increases in underlying commodity costs. Segment operating profit for the quarter decreased 33 % to $ 777 million. This decrease was due primarily to gains on asset sales in the prior year fourth quarter.
Oilseeds Processing operating profit decreased as fourth quarter 2007 results included a $ 440 million gain related to the exchange of the Company’s interests in certain Chinese joint ventures for shares in Wilmar International Ltd. Global demand for vegetable oil and protein meal continued to be strong. Corn Processing operating profit increased due primarily to increased ethanol sales volumes and higher average selling prices of Sweeteners and Starches. Agricultural Services operating profit decreased due principally to the $ 153 million gain on the sale of the Company’s investment in Agricore United recognized in the fourth quarter of 2007 partially offset by increased sales volumes and margins.
Net sales and other operating income increased 78 % to $ 21.8 billion for the quarter and 59 % to $ 69.8 billion for the twelve months. For both the quarter and year, higher selling prices resulting primarily from sharp rises in underlying commodity costs accounted for approximately 90 % of the increase while higher sales volumes, principally ethanol and merchandised oilseeds and grains, accounted for the remaining 10 % increase.
