05 February 2013 13:03 [Source: ICIS news]
LONDON (ICIS)--Archer Daniels Midland's (ADM) fiscal second-quarter net earnings rose sharply to $510m (€377m) from $80m in the same period the year before, on the back of improved profits from the group's Oilseeds Processing segment, the US-based agribusiness group said on Tuesday.
ADM's net sales in the quarter ended 31 December 2012 rose 6.9% year on year to $24.9bn, while the group’s segment operating profit was $808m, up from $342m in the same period a year before.
“The ADM team managed well despite challenges from the US drought and from persistent, negative margins in the ethanol industry,” said ADM chairman and CEO Patricia Woertz.
“In North America, we fully utilised our oilseeds crushing capacity to meet strong global demand, and we adjusted our transportation and origination network to move goods efficiently despite constrained river traffic and a smaller corn crop.
"In South America, we leveraged our origination, transportation and export facilities to move the record corn crop to world markets. And, in Europe, we made some operational changes, and the market responded to reduced imports,” he added.
The group’s Oilseeds Processing operating profit increased $202m to $411m for the quarter, with year-over-year improvements in crushing and origination results in all regions.
The group’s Corn Processing operating profit swung to $3m from a loss of $129m in the year-before quarter. However, when excluding the year-ago quarter's $339m asset impairment charge, the Corn Processing’s operating profit decreased $207m, due to ongoing weakness in industry ethanol margins.
Operating profit from ADM’s Agricultural Services business rose $77m to $317m, as solid US soybean exports, improved international merchandising and a $62m gain on ADM’s investment in GrainCorp benefitted results, it said.
($1 = €0.74)
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