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ADM ADM Archer-Daniels-Midland Company NYSE 2nd UPDATE: ADM 3Q Net Up But Misses Street Views; Stock Down (Updates throughout including comments from conference call, context and latest share price.) By Desiree J. Hanford Of DOW JONES NEWSWIRES Archer Daniels Midland Co.'s (ADM) fiscal third-quarter net income rose 4.3%, boosted by its corn-processing business but hurt by its agricultural services segment. Earnings came in below Wall Street's expectations, causing a steep decline in ADM's share price. The stock was recently trading at $36.39, down 6%, or $2.31. Still, executives said during a conference call that they remain optimistic about opportunities both in the short term and long term. "We are particularly pleased with these results during a particularly challenging quarter," ADM Chairman and Chief Executive Patricia A. Woertz said during a conference call with analysts. "We continue to take actions to align our portfolio with the company's strategic direction. Our view going forward is quite optimistic." The Decatur, Ill., agricultural-processing company has been a primary beneficiary over the past few years of increased interest in ethanol, as demand increases and the U.S. government promotes its use as an alternative to traditional fuels. ADM is the largest ethanol producer in the U.S. In the latest quarter, ADM's net income increased to $362.9 million, or 56 cents a share, from $347.8 million, or 53 cents a share, in the year-earlier period. Revenue for the quarter that ended March 31 rose 25% to $11.38 billion from $9.12 billion a year earlier. Analysts polled by Thomson Financial expected, on average, for ADM to earn $ 403 million, or 62 cents a share, on revenue of $9.65 billion. Corn processing operating profit rose 15% to $251.8 million. ADM said lower operating costs and increased starch, sweetener and ethanol selling prices boosted results, but were partially offset by an increase in corn costs during the quarter. As for current market conditions, sweetener selling prices will be up during the calendar year, Chief Financial Officer Douglas Schmalz said. Ethanol prices during the fourth quarter of April through June should increase from the price levels that were seen during the third quarter, he said. Oilseeds processing operating profit fell 4.6% to $168.5 million, hurt by reduced softseed and biodiesel processing margins. Those declines were partially offset by better fertilizer improved fertilizer margins in South America, Schmalz said. Currently, crop availability in the segment looks good, Schmalz said. North American industry levels are high, and the expected growing biodiesel demand is supporting price levels, he said. Agricultural services operating profit fell 48% to $40.5 million, which ADM attributed to a decline in global merchandising and handling results. The results also show the effect of weather, inventory handling costs and logistics, Schmalz said. ADM continues to see "solid demand" for storage and handling, Schmalz said. In addition, there are regional imbalances in the global grain markets and that could present some opportunities to the company, he said. Other segment results, which include the food, feed and industrial business as well as financial operations, rose 75% to $132.3 million, boosted by a $33 million gain from the sale of the Arkady food-ingredient business. -By Desiree J. Hanford, Dow Jones Newswires; 312-750-4135; desiree.hanford@ dowjones.com (Jonathan Vuocolo contributed to this report.) (END) Dow Jones Newswires 05-01-071105ET Copyright (c) 2007 Dow Jones & Company, Inc. |
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| Autor (Datum des Eintrages): | ambodenstaendig (01.05.07 17:58:10) |
| Beitrag: | 87 von 186 (ID:29083460) |
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