ADM off to a good start in first quarter
earnings more than double in its first quarter, with performance
boosted by improved market conditions and price increases for some
of its primary products.
The US firm this week reported net earnings of $403m for the quarter ended September 30 2006, a massive 116 percent increase from last year's figure of $186m.
"ADM delivered near-record performance in the first quarter. Our earnings (…) reflect strong momentum in our core businesses," said ADM chief executive officer and president, Patricia Woertz, but she added that the firm will continue to experience challenges in dealing with volatile commodity prices.
Net sales for the period stood at $9.4bn, a 10 percent increase from last year's figure of $8.6bn.
The firm's oilseed processing segment saw profits increase $71m to $170m for the quarter, on the back of "improved market conditions" , said the firm.
Corn Processing operating profit increased $154m to $290m, with Sweetener and Starches earnings increased $20m to $113m. This was largely a result of increased pricing for products in this category.
Agricultural Services operating profits increased $91m to $111m, due principally to improved earnings of global grain merchandising operations and improved operating results of transportation operations, said ADM. However, the negative impact of hurricanes decreased North American origination and export operating results for the quarter.
The firm also saw a decline in other segment operating profit, which fell $19m to $76m for the quarter. This was mainly due to a $31m decline in Food, Feed and Industrial operating results.
"This decline was primarily due to reduced operating results of cocoa, wheat milling and natural health and nutrition operations, partially offset by a $12m improvement in operating profit of the financial operations," said ADM.