ADM oilseed business boosts Q1 sales
Archer Daniels Midland Co. (ADM) demonstrated its strength in oilseeds processing and agricultural services, despite a slowing of the ethanol boom. First-quarter earnings of US$441 million were 9% more than in the same period a year ago.
year earlier, far above the $10.64 billion expected by analysts. Profit in ADM’s
oilseeds processing business rose nearly 23% to $209 million from $170 million a
year ago, due to strong demand worldwide for protein meal and oil. Corn
processing operating profit declined 12% to $253 million due to lower ethanol
sales prices and volumes and higher net corn costs. Ethanol income declined 52%
before taxes.
Operating profit from sweeteners and starches jumped 38%
to $164 million on higher average sweetener and starch selling prices.
Agricultural services results nearly doubled to $229 million.
“Where excellent first-quarter earnings of a year ago
reflected steep growth in the ethanol market, our record first-quarter earnings
this year demonstrate our strengths in sweeteners and starches, oilseed
processing and our global capabilities in grain merchandising and handling,”
said chief executive Patricia Woertz.
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