ADM reports profits bolstered by ethanol
October 14, 2010
BY Holly Jessen
Posted Nov. 3, 2010
Profit from ethanol production was a bright spot for Archer Daniels Midland Co. in the company's first quarter, which ended Sept. 30.
Overall, the company reported net earnings of $345 million for the first quarter. That's down $151 million from the same period a year ago. Diluted earnings per share were 54 cents, down from last year's 77 cents.
Corn processing went from 4.6 million metric tons in the first quarter of last year to 5.8 million metric tons this year. That increase reflects the added capacity of the company's two new dry mill ethanol plants, said CFO Steven Mills, who will take over as senior executive vice president of performance and growth Dec. 1. Construction wrapped up this summer on ADM's 300 MMgy plants in Columbus, Neb., and Cedar Rapids, Iowa.
Corn processing profit increased $153 million when compared to the first quarter of last year, to a total of $341 million. "Bioproducts profits in the quarter was up significantly from last year's loss, on improved ethanol and lysine margins, a more favorable corn ownership position and increased ethanol sales volumes," Mills said during the quarterly conference call on Nov. 2.
Corn processing profit was offset somewhat by a $48 million decrease in profit on the sweeteners and starches side. Although sales volumes were up, prices were down, the company said.
The company's oilseeds processing business showed increased profits of $24 million. ADM announced it plans to build a second biodiesel plant in Brazil, adjacent to its soybean crushing and refining facilities. The plant will more than double ADM's biodiesel capacity in Brazil when completed in the first half of 2012.
In contrast, ADM's agricultural services segment experienced a decrease in profit of $43 million. That was due to shifts in crop supplies early in the first quarter, the company said.
"The ADM team performed solidly in both corn and oilseeds with both businesses well positioned to meet demand," said Patricia Woertz, CEO and chairperson of the board. "As we look at markets today, global demand is generally strong. This presents ADM with the opportunity to grow shareholder value by doing what we do best: use our assets and our acumen to connect crops from regions where they're available to markets where they're needed."
Profit from ethanol production was a bright spot for Archer Daniels Midland Co. in the company's first quarter, which ended Sept. 30.
Overall, the company reported net earnings of $345 million for the first quarter. That's down $151 million from the same period a year ago. Diluted earnings per share were 54 cents, down from last year's 77 cents.
Corn processing went from 4.6 million metric tons in the first quarter of last year to 5.8 million metric tons this year. That increase reflects the added capacity of the company's two new dry mill ethanol plants, said CFO Steven Mills, who will take over as senior executive vice president of performance and growth Dec. 1. Construction wrapped up this summer on ADM's 300 MMgy plants in Columbus, Neb., and Cedar Rapids, Iowa.
Corn processing profit increased $153 million when compared to the first quarter of last year, to a total of $341 million. "Bioproducts profits in the quarter was up significantly from last year's loss, on improved ethanol and lysine margins, a more favorable corn ownership position and increased ethanol sales volumes," Mills said during the quarterly conference call on Nov. 2.
Corn processing profit was offset somewhat by a $48 million decrease in profit on the sweeteners and starches side. Although sales volumes were up, prices were down, the company said.
The company's oilseeds processing business showed increased profits of $24 million. ADM announced it plans to build a second biodiesel plant in Brazil, adjacent to its soybean crushing and refining facilities. The plant will more than double ADM's biodiesel capacity in Brazil when completed in the first half of 2012.
In contrast, ADM's agricultural services segment experienced a decrease in profit of $43 million. That was due to shifts in crop supplies early in the first quarter, the company said.
"The ADM team performed solidly in both corn and oilseeds with both businesses well positioned to meet demand," said Patricia Woertz, CEO and chairperson of the board. "As we look at markets today, global demand is generally strong. This presents ADM with the opportunity to grow shareholder value by doing what we do best: use our assets and our acumen to connect crops from regions where they're available to markets where they're needed."
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