|
Hier die Erwartungen für die morgigen Quartalszahlen: NEW YORK (AP) - Agribusiness company Archer Daniels Midland reports earnings for the fiscal fourth quarter on Tuesday. The following is a summary of key developments and analyst opinion related to the period. OVERVIEW: Archer Daniels Midland is the world's largest processors of oilseeds, corn and wheat, producing and selling soybean, peanut and other oilseed products. Ethanol production is a hot trend lately, as the federal government is pushing alternatives to gas and oil. But it remains to be seen whether profit from ethanol production will really materialize, or if the race to build ethanol plants will end up causing a glut in the market. Related newsStocks Finish Week With Solid AdvancesBig Movers in the Stock MarketPremarket Movers: Massey Shares PlungeU.S. Farmers Expects Weak Peanut CropWall Street's Happy Mood Based on News In June, the Decatur, Ill.-based company said it will double capital spending to between $3.5 billion to $4 billion over the next few years over investments in new ethanol and biodiesel plants. The company also said it would market all ethanol produced by Millennium Ethanol LLC at its 100 million gallon Marion, S.D. plant, currently under construction. In May, the European Union's Court of Justice upheld a $56.6 million EU fine against the company for price-fixing on animal feed ingredients in the EU, stemming from a 1996 case. Also in May, the company said t will add a palm oil refinery to its Hamburg, Germany plant and build a new dry-mill ethanol plant in Cedar Rapids, Iowa. Meanwhile, competitor Bunge Ltd., a global soybean processor, in July reported a 73 percent second-quarter profit drop, hurt by farmer protests in Brazil, excess capacity in Argentina and reduced volumes and margins in international marketing. Additionally, the year-ago quarter benefited from a large gain. BY THE NUMBERS: Analysts expect a profit of 52 cents on revenue of $9.78 billion, according to a Thomson Financial poll. ANALYST TAKE: "We believe that ADM's expertise in agricultural processing positions the company as the leader in biofuels production," wrote ThinkEquity Partners analyst David Edwards in a note to clients. "We also think that worldwide economic growth should lead to higher protein diets, driving ADM's livestock-related businesses." The company has advantages over others in terms of alternative fuels, including leading market share, cost-efficient production and "unmatched" logistics capabilities. "In addition, we believe that ADM has the advantages of being strategically located and having superior hedging capabilities and strong technology assets," he added. Edwards initiated ADM with a "Buy" rating and $50 price target on July 24. His quarterly profit estimate of 52 cents per share is in line with the consensus. WHATS AHEAD: Archer Daniels Midland in July announced plans to build a biodiesel production plan using soybean oil in Brazil, which will be operational by the first half of 2007. The company plans to take advantage of a mandate in that country that diesel producers begin blending alternative fuel with their products. Biodiesel is an alternative fuel made from vegetable oils. It burns cleaner than petroleum-based diesel. |
|
| aus der Diskussion: | Lohnt sich ein Investment in Archer-Daniels-Midland Co. zum jetzigen Zeitpunkt noch? |
| Autor (Datum des Eintrages): | neimax (31.07.06 21:17:42) |
| Beitrag: | 6 von 186 (ID:23260126) |
| Alle Angaben ohne Gewähr © wallstreetONLINE | |