May 2, 2007

 

ADM fiscal third-quarter net profit up 4.3 percent

 

 

Archer Daniels Midland Co's (ADM) fiscal third-quarter net income rose 4.3 percent, boosted by its corn-processing business and food, feed and industrial operations.

 

The Decatur, Illinois, agricultural-processing company said net income increased to US$362.9 million, or 56 cents a share, from US$347.8 million, or 53 cents a share, a year earlier.

 

Revenue for the quarter ended March 31 rose 25 percent to US$11.38 billion from US$9.12 billion a year earlier.

 

Analysts polled by Thomson Financial expected, on average, earnings of 62 cents a share on revenue of US$9.65 billion.

 

Corn processing operating profit rose 15 percent to US$251.8 million. ADM said lower operating costs and increased starch, sweetener and ethanol selling prices boosted results, but were partially offset by an increase in corn costs during the quarter.

 

High corn prices affect both ADM's ethanol business and its high-fructose corn-syrup operations. Corn for May delivery closed Monday at US$3.58 a bushel, down 6 1/4 cents. May 2006 corn settled at US$2.38 on May 1, 2006. While corn prices are up year-over-year, they have been falling recently because of favourable weather for planting the US corn crop.

 

Agricultural services operating profit fell 48 percent to US$40.5 million, while oilseeds processing fell 4.6 percent to USUS$168.5 million.

 

Other segment results, which include the food, feed and industrial business as well as financial operations, rose 75 percent to US$132.3 million, boosted by a US$33 million gain from the sale of the Arkady food-ingredient business.

 

"We performed well in a challenging quarter," said ADM Chairman and CEO Patricia A. Woertz. "We are particularly pleased with continued strong performance in our corn processing segment. Our results also benefited from actions to strategically align our portfolio and our outlook on future opportunities remains quite strong."