ADM Profit Doubles on Ethanol, Oilseeds
Published: October 31, 2006 10:50 AM Dow Jones
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ADM
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By Desiree J. Hanford
Of DOW JONES NEWSWIRES
CHICAGO -(Dow Jones)- Archer-Daniels-Midland Co.'s (ADM) first-quarter net income more than doubled as operating profit rose in three of its four business segments.
The agricultural-processing company earned $402.7 million, or 61 cents a share, for the quarter ended Sept. 30. That compares with $186.3 million, or 29 cents a share, in the year-earlier period.
ADM's sales rose 10% to $9.45 billion from $8.63 billion.
Results from the Decatur, Ill., company easily beat Wall Street's expectations. Analysts polled by Thomson First Call expected, on average, for ADM to earn $396.4 million, or 55 cents a share, on sales of $8.94 billion.
"Our earnings, more than double those of a year ago, reflect strong momentum in our core business," President and Chief Executive Patricia A. Woertz said in the company's press release. "However, we will continue to experience the challenges of dealing with volatile commodity prices."
ADM's shares were recently trading at $39.90 in pre-market trading. That's up 3.5% from its Monday close of $38.54.
ADM's segment operating profit rose 85% to $648 million from $351 million in the year-earlier period.
Corn processing, the largest segment by dollars, posted operating profit of $290.5 million, more than doubling from the year-earlier period. The segment was helped by increased starch, sweetener and ethanol selling prices.
Operating profit for oilseeds processing rose 71% million to $169.6 million, as improved market conditions led to better operating profits in all geographic regions.
Agricultural services operating profits were $111.3 million, a $91 million increase.
Operating profit in ADM's other segment, which includes food, feed and industrial, declined nearly 20% to $76 million mainly because of reduced operating results in cocoa, wheat milling and natural health and nutrition operations. That was partially offset by an improvement in operating profit of the financial operations.
-By Desiree J. Hanford, Dow Jones Newswires; 312-750-4135; desiree.hanford@dowjones.com
(END) Dow Jones Newswires
10-31-06 0924ET
Copyright (c) 2006 Dow Jones & Company, Inc.
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