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UPDATE: Archer Daniels Midland Stock Falls After Profit Misses Target

By Steve Gelsi

NEW YORK (Dow Jones) -- Archer Daniels Midland shares fell more than 6% Tuesday after the corn and soy bean processing giant's earnings missed Wall Street targets on lower ethanol margins and other factors.

ADM (ADM) said fiscal third-quarter net earnings rose 4.3% to $362.9 million, or 56 cents a share, from $347.8 million, or 53 cents a share, a year earlier.

The latest period includes a gain of $33 million, mostly from the sale of its Arkady food ingredient business. Sales increased 25% to $11.38 billion from $ 9.12 billion.

Analysts surveyed by Thomson Financial expected Archer Daniels Midland to earn 62 cents a share on sales of $9.65 billion for the third quarter ended March 31.

Prudential Equity Group analyst John M. McMillin said in a note to clients Tuesday the results were "a little disappointing...but we would still buy into any weakness."

Earnings from operations were 51 cents a share, not including a capital gain of 5 cents a share, below Prudential's estimate of 58 cents a share and well below the consensus of 61 cents a share.

A higher tax rate ate up 3 cents a share of ADM's earnings, and a last-in, first-out accounting charge cost 2 cents a share.

Bioproducts, which is mostly ethanol, had a sequential earnings drop to $125 million from $189 million.

Prudential cut its 200 profit estimate to $2.40 a share from $2.47 a share.

Archer Daniels Midland stock fell 6% to $36.27.


(END) Dow Jones Newswires
05-01-071618ET
Copyright (c) 2007 Dow Jones & Company, Inc.

 
aus der Diskussion: Lohnt sich ein Investment in Archer-Daniels-Midland Co. zum jetzigen Zeitpunkt noch?
Autor (Datum des Eintrages): ambodenstaendig  (02.05.07 00:56:33)
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