Weaker corn results weigh on ADM income

by Staff
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DECATUR, ILL. — Weakness in global oilseed margins as well as disappointing results in corn and international merchandising led to an 88% decline in earnings during the second quarter for Archer Daniels Midland Co.

For the quarter ended Dec. 31, 2011, the company had earnings of $80 million, equal to 12c per share on the common stock, which compared with earnings of $732 million, or $1.14 per share, during the same quarter of the previous year. Adjusted earnings per share, which excludes the impact of LIFO, PHA-related impairment charges and other adjustments, was 51c per share, down 58% from the prior year’s second quarter. Segment operating profit, after excluding the impact of the PHA-related charge, was $648 million, down 52% from a year ago.

Sales and other operating income during the quarter was $23,306 million, up 11% from $20,930 million during the same quarter of the previous year.

“It was a tough quarter,” said Patricia Woertz, chairman and chief executive officer. “The operating environment was challenging. Ongoing weakness in global oilseeds margins, lower results in corn and poor international merchandising results hurt our second-quarter profits.

“We remain optimistic about the long-term fundamentals of our business and the growing earnings power of our company. We continue to execute our plan to drive shareholder value: prioritizing capital projects, implementing productivity measures and returning capital to shareholders through increased dividends and share buybacks.”

Overall, Corn Processing results were down $532 million, including $339 million in asset impairment charges. Additionally, Agricultural Services profit was down $268 million, and Oilseeds Processing profit was down $72 million.

For the six months ended Dec. 31, the company had earnings of $540 million, or 81c per share, down 50% from $1,077 million, or $1.68 per share, during the same period of the previous year. Sales and other operating income for the period was $45,208 million, up 20% from $37,729 million.

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