US ADM’s fiscal Q3 net earnings fall 31% to $399m on poor margins

01 May 2012 13:01  [Source: ICIS news]

LONDON (ICIS)--Archer Daniels Midland's (ADM) fiscal third-quarter net earnings fell 31% year on year to $399m on poor margins, particularly in ethanol and European oilseeds, the US-based agribusiness group said on Tuesday.

ADM's net sales rose 5.4% year on year to $21.2bn.

The group’s segment operating profit for the quarter ended 31 March fell 12% year on year to $887m (€674m), following a fall in profit from the group’s Oilseeds Processing and Corn Processing businesses.

ADM’s Oilseeds Processing profit in its fiscal third quarter declined 23% year on year to $395m, primarily due to the absence of significant, favourable timing effects which benefited year-ago results, the company said.

“Improved results in North and South America [in ADM’s Oilseeds Processing segment] significantly offset weakness in Europe,” ADM added.

The group’s Corn Processing profit during the quarter decreased $74m year on year to $130m as improved sweetener results were offset by poor ethanol margins, ADM said.

ADM’s Agricultural Services profit rose $8m year on year to $179m, as lower North American grain exports were offset by improved international merchandising margins and volumes.

“This quarter, we delivered very good results despite difficult margin environments, particularly in ethanol and European oilseeds,” said ADM chairman and CEO Patricia Woertz.

“The strong third quarter last year set a high bar, and this quarter represents a solid performance by the team,” Woertz added.

“Looking ahead, planting is underway in North America, and we’re encouraged by the projected corn and soybean acreage,” Woertz said.

($1 = €0.76)

By: Franco Capaldo
+44 (0)20 8652 3214

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