August 4, 2010

ADM's net income shows increase amid higher Asian grain demand

Archer Daniels Midland Co. (ADM), the world's largest grain processor, reported an increase in its fourth-quarter profit after demand rose in Asia and earnings from bio-products such as ethanol improved.

Net income increased to US$446 million, or 69 cents a share, in the three months through June, from US$58 million, or 9 cents, a year earlier, the Decatur, Illinois-based company said in a statement.

ADM, led by CEO Patricia Woertz, said agricultural services benefited from modestly improving demand, particularly from Asia, and the oilseeds-processing unit saw higher volumes in South America and Europe. The agricultural-services unit had an operating profit of US$178 million, compared with a US$17 million loss a year earlier.

Corn-processing operating profit was US$140 million as ethanol and lysine margins increased, compared with a loss of US$11 million a year earlier, ADM said. Oilseed processing- operating profit rose 58% to US$359 million on higher volume in South America and Europe, beating the US$148 million estimate by Vincent Andrews, an analyst at Morgan Stanley in New York.