ADM 2Q Profit Up 20 Pct; Stock Soars
Thursday February 1, 10:14 am ET
By David Mercer, Associated Press Writer
Archer Daniels Midland 2Q Profit Jumps 20 Percent on Corn-Processing Growth; Stock Soars
CHAMPAIGN, Ill. (AP) -- Archer Daniels Midland Co., the nation's largest food processor, said Thursday its second-quarter profit rose 20 percent, driven in large part by a jump in corn-processing profit. ADM shares jumped 10 percent in early trading.
For the quarter ended Dec. 31, earned $441.3 million, or 67 cents per share, compared with $367.7 million, or 56 cents per share, a year earlier.
Revenue rose to $10.98 billion from $9.3 billion in the year-ago period.
The results topped Wall Street's expectations. Analysts polled by Thomson Financial had expected a profit of 60 cents per share on $9.52 billion in revenue.
ADM shares rose $3.19 to $35.19 in morning trading on the New York Stock Exchange.
"We are particularly pleased with the strong performance from all segments," ADM Chief Executive Officer and President Patricia Woertz said.
The Decatur-based company is also the country's largest producer of the fuel additive ethanol, made from corn.
ADM's corn-processing business, which includes its ethanol production, had a particularly strong quarter. Operating profit increased 42 percent from a year earlier to $335 million.
Strong prices for both ethanol and corn-based sweetener helped those results, according to ADM, but they were somewhat offset by high corn prices. Demand for ethanol has driven corn prices up in recent months.
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