Einen habe ich noch, von der Citigroup
, ... (der Ordnung halber angemerkt sei, dass sie 1 % in ADM halten).Im corn-processing & Ethanol war man übrigens ganz gut (bei niedrigerem Maispreis wäre es halt noch besser gewesen), weniger gut waren die agricultural services.
ADM ADM
Archer-Daniels-Midland Company NYSE
Updates with analyst comments, context about corn acreage, the latest share price and share prices of other ethanol producers.)
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 $36.29, down 6.2%, or $ 2.41, on heavy volume.
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.
Citigroup analyst David Driscoll said he's disappointed in the quarter's results, but he's not totally surprised given that his estimate was below the consensus and that ADM's business "always contains a good bit of volatility."
"However, despite today's results, we continue to see a solid long-term road ahead in ethanol, corn sweeteners and oilseed processing given strong, positive long-term trends," Driscoll said in a research note.
Corn, Ethanol Prospects
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.
Corn prices are up year over year, but they've been falling recently given that ethanol demand is expected to push acreage higher. Recent wet weather has delayed plantings, but dry weather this week should allow farmers to catch up. The USDA reported that 23% of the U.S. corn crop was planted as of April 29, well below the 48% seeded in 2006 and the five-year average of 42%. Traders and analysts had expected planting 27% to 35% complete.
On March 30, the Agriculture Department said in its prospective plantings report that farmers intend to sow 90.5 million acres of corn this growing season, the highest U.S. corn acreage since 1944.
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.
Shares of other ethanol producers were also in the red Wednesday. Shares of VeraSun Energy Corp. (VSE) were recently trading at $19.76, down 17 cents, or 0.9%, and shares of Andersons Inc. (ANDE) were recently at $45.29, down $1.16, or 2.5%.
Citigroup owns 1% or more of ADM's stock and it has received investment banking compensation from the company in the last 12 months.
-By Desiree J. Hanford, Dow Jones Newswires; 312-750-4135; desiree.hanford@ dowjones.com
(Jonathan Vuocolo and Joe Poncer contributed to this report.)
(END) Dow Jones Newswires
05-01-071159ET
Copyright (c) 2007 Dow Jones & Company, Inc.