ADM earnings rise 65% in year

by Eric Schroeder
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DECATUR, ILL. — Net income of Archer Daniels Midland Co. in the year ended June 30 was $2,161,668,000, equal to $3.30 per share on the common stock, up 65% from $1,312,070,000, or $2 per share in fiscal 2006.

Net sales were $44,018,309,000, up 20% from $36,596,111,000.

"ADM delivered its third consecutive year of record earnings," said Patricia A. Woertz, ADM chairman and chief executive officer. "Credit goes to the people of ADM, who delivered strong results in all our major business segments and beat both our return and cost targets.

"We are building out the long-term potential of this company. Our realignment and sale of assets are on target. Our strategic capital projects are all on schedule, and we see adequate global crops to meet all needs. We remain very confident in our strategic direction."

For the fourth quarter, net income was $954,764,000, or $1.47 per share, up sharply from $410,259,000, or 62c per share. Sales totaled $12,214,198,000, up 28% from $9,547,336,000.

Operating profit of the ADM Oilseeds Processing segment was $1,117,343,000 in the full year and $587,177,000 in the fourth quarter, up 87% and 202%, respectively, from similar periods in fiscal 2006. The total included a $440 million gain upon the exchange of the company’s interest in certain Chinese joint ventures for shares in Wilmar International, Ltd., the largest agriculture processing business in Asia.

Corn Processing operating profits were $1,119,087,000 for the year and $241,318,000 for the fourth quarter, up 28% and down 16%, respectively. Fourth-quarter results were dragged down by higher net corn costs and lower ethanol sales volumes, but for the year, higher average selling prices of sweetener and ethanol products proved enough to offset higher net corn costs.

Operating profit in the Agricultural Services segment soared 87% in the year to $515,508,000. For the fourth quarter, profit was $240,833,000, up 189% behind a gain of $153 million resulting from the company’s sale of its interest in Agricore United.

In the "Other" segment, operating profit rose 53% to $3,160,596 for the full year and climbed 81% to $1,152,491,000 for the fourth quarter. The full-year increase was primarily due to a gain of $53 million realized upon the sale of the company’s Arkady food ingredient business and to improved financial operating results.

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