Ag Services, Corn units boost ADM's earnings
Feb. 1, 2011
by Keith Nunes
DECATUR, ILL. – Strong results from its Agricultural Services and Corn Processing business units supported an increase in net earnings for the Archer Daniels Midland Co. during the second quarter of fiscal 2010, ended Dec. 31. For the quarter net income was $732 million, equal to $1.14 per share on the common stock, which compared favorably to $567 million, equal to 88c per share, in the same period of the previous year.
Sales for the quarter were $20,930 million compared to $15,913 million during the second quarter of fiscal 2009.
Agricultural Services operating profit during the second quarter was $426 million, a $276 million increase from $150 million in the second quarter of 2009. The company said it was well-positioned to meet strong global grain demand and shipped record volumes through its U.S. origination and export network.
Sales for the Agricultural Services business unit were $10,757 million during the quarter as compared with $7,640 during the previous year’s second quarter.
The Oilseeds Processing unit saw its second-quarter operating profit decline to $325 million from $298 million due to mark-to-market timing effects, according to the company. Business segment sales increased to $6,220 million from $4,880 million during the same quarter of the previous year.
The company’s Corn Processing business generated operating profit of $399 million during the quarter, a $109 million increase compared to the previous year’s $290 million in the second quarter. The company attributed the improved results to favorable corn ownership positions and improved ethanol margins. Sales for the Corn Processing business were $2,485 million during the quarter, an increase from $2,029 million in the previous year’s second quarter.
"The ADM team delivered outstanding performance across the board, resulting in record operating profit," said Patricia Woertz, chairman and chief executive officer of ADM. "Amid strong demand and regional dislocations, we used our vast global network to deliver for our customers and shareholders.
"Looking ahead, global markets remain dynamic. In this environment, we use ADM’s exceptional capabilities, our unique global asset base and the insights of our team to drive value and to serve vital needs."