ADM Q4 corn processing profit down 16%

31 July 2007 07:45  [Source: ICIS news]

SINGAPORE (ICIS news)--Archer Daniel Midlands (ADM), the US agricultural major, posted late on Monday a 16% fall in fourth quarter corn processing operating profit declined due primarily to lower ethanol sales volumes and higher net corn costs.

Operating profit for its corn processing segment fell to $241.3m (€176.1m) in the quarter ended 30 June from $285.9m in the same period a year ago, ADM said in a statement.

The segment includes profits from bioproducts which covers ethanol. Operating profit at its bioproducts segment fell 18% to $142.1m, ADM said.

For the full year, the bioproducts segment posted a 42.3% rise in operating profit to $634.1m.

The company is focusing on increasing its ethanol and biodiesel capacity and has plans to build a biodegradable plastic plant.

ADM is to bring on stream a 180,000 tonne/year biodiesel plant in Rondonopolis, Mato Grosso, Brazil, in August.

It has also scheduled to start up an ethanol plant in Columbus, Nebraska, US, in November 2008 and another in Cedar Rapids, Iowa in August 2009.

ADM plans to also build a propylene/ethylene glycol plant in Decatur, Illinois, to start up in January 2009.

($1=€0.73)

By: Florence Tan
+65 6780 4359

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