01 November 2011 13:45 [Source: ICIS news]
HOUSTON (ICIS)--US-based agribusiness Archer Daniels Midland (ADM) reported on Tuesday first-quarter 2012 net earnings of $460m (€331m), an increase of 33% from the same period a year earlier.
For the quarter ended 30 September, ADM reported segment profits of $699m on total net sales and other income of $21.9bn.
“During the first quarter, margin conditions for our global oilseeds segment were generally weak and net corn costs were high,” said ADM chief executive Patricia Woertz.
During the quarter, ADM acquired oilseeds facilities in Poland and India and expanded agricultural service operations to support exports, Woertz said.
ADM reported that oilseeds operating profit declined $87m for the quarter year on year while corn processing profit decreased $162m. Net corn costs more than doubled from the prior year, the company said.
Refining, packaging, biodiesel and other operations generated a profit of $49m, down $27m year on year, as good North American biodiesel demand and strong volumes and margins of protein specialty products offset lower results from South America and Europe, ADM said.
Operating profits from sweeteners and starches decreased $118m, to $28m, as higher corn costs more than offset higher average selling prices and sale volumes, the company said.
Bioproducts profit in the quarter decreased $44m, to $151m. Lysine and spot ethanol margins in the quarter were good, the company said.
“Ethanol margins should continue to be good in the near term,” Woertz said.
“In the future, more of the world's demand for agricultural commodities will be met with non-US supply, and ADM will leverage its global asset base to help meet this demand,” said Woertz.
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