Ethanol aids ADM results
Net earnings for the quarter more than doubled to $ 410 million - $ .62 per share from $ 195 million - $ .30 per share last year. Segment operating profit for the quarter increased 82% to $ 637 million from $ 351 million last year.
03/08/06 Archer Daniels Midland has reported that net earnings for the year ended June 30, 2006 increased 26% to $ 1.312 billion - $ 2.00 per share from $ 1.044 billion - $ 1.59 per share last year. Segment operating profit for the year increased 33% to $ 2.061 billion from $ 1.551 billion last year.
“ADM delivered its second consecutive year of record earnings” said CEO and President Patricia Woertz. “Credit goes to the people of ADM and the alignment of our strategy, global portfolio of assets and strong management team. We have good momentum going forward and are well positioned to capitalize on our opportunities for continued growth.”
Net earnings for the quarter more than doubled to $ 410 million - $ .62 per share from $ 195 million - $ .30 per share last year. Segment operating profit for the quarter increased 82% to $ 637 million from $ 351 million last year.
Oilseeds Processing operating profit increased on improved market conditions in all geographic areas. Corn Processing operating profit increased due to improved ethanol and sweetener selling prices and volumes. Agricultural Services operating profit increased principally due to improved transportation results. Other segment operating profit declined primarily due to decreased results of Food & Feed Ingredients.
Corn Processing operating profit increased $ 169 million to $ 286 million for the quarter as Sweeteners and Starches earnings increased $ 20 million to $ 112 million and Bioproducts earnings increased $ 149 million to $ 174 million. For the fiscal year, Corn Processing operating profit increased $ 347 million to $ 877 million as Sweeteners and Starches earnings increased $ 160 million to $ 432 million and Bioproducts increased $ 187 million to $ 446 million. Increased starch, sweetener and ethanol selling prices and volumes contributed to the earnings improvements for both the quarter and fiscal year. Lower lysine selling prices negatively impacted Bioproducts results for the fiscal year.
For the quarter, average net corn costs increased. For the year, net corn costs decreased, but were partially offset by higher energy costs. Agricultural Services operating profits increased $ 15 million to $ 83 million for the quarter and increased $ 14 million to $ 275 million for the year principally due to improved operating results of transportation operations partially offset by a decline in global grain merchandising operations. In addition, fiscal year operating profits of the North American origination and export operations declined due to the negative impact of the hurricanes in the first half of the fiscal year.
Other segment operating profit declined $ 18 million to $ 73 million for the quarter due principally to a $ 40 million decline in Food and Feed Ingredients operating results, primarily due to reduced operating profits of the natural health and nutrition, wheat milling and cocoa operations, partially offset by a $ 21 million improvement in operating profit of the financial operations. For the year, Other segment operating profit declined $ 104 million to $ 310 million due to a decline in operating profit of the Food and Feed Ingredient businesses due principally to asset abandonment charges and reduced operating results of the natural health and nutrition, wheat milling and cocoa operations.