November 1, 2006

ADM 1Q earnings more than double, boosted by oilseed, corn results
 

Agricultural processing company Archer Daniels Midland said Tuesday, Oct 31, its first-quarter profit more than doubled, boosted by better oilseed and corn processing results.

The results beat Wall Street's expectations and ADM shares rose 25 cents to 38.79 in early trading on the New York Stock Exchange.

Net income was US$402.7 million, or 61 cents per share, up sharply from US$186.3 million, or 29 cents per share, during the same period last year.

Revenue grew 10 percent to US$9.45 billion from US $8.63 billion last year.

Polls by Thomson Financial expected a profit of 55 cents per share on revenue of US$8.94 billion.

ADM's oilseed processing profit grew due to better market conditions, while corn processing results improved on better ethanol and sweetener prices. Agricultural services earnings were helped by global merchandising and transportation results.

Profit fell in ADM's food, feed and industrial segments on lower net income from cocoa, wheat milling and natural health and nutrition operations.

The company delivered near-record performance in the first quarter, reported its president and CEO Patricia Woertz. The earnings reflected a strong momentum in the core businesses but would continue to experience the challenges of dealing with volatile commodity prices was what he added.

Though ADM used about a third of all the corn, wheat and soy processed in the US for making feed and food additives, analysts expected it to increase production of ethanol, a fuel additive produced from corn.

Woertz, a former Chevron Corp. executive was hired in April to affirm its priorities in energy.