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ADM
Reports Third-Quarter Net Earnings of $517 Million, Up 42% From Third-Quarter
2007
Decatur, IL—Archer
Daniels Midland reported April 29 net
earnings for the quarter ended March 31, 2008 increased 42% to $517
million from $363 million last year.
"ADM's third-quarter
performance demonstrates the ability of our balanced operations, global
network and solid balance sheet to deliver strong results amid fluid
markets," said Patricia Woertz, Chairman and CEO.
"Volatility in commodity
markets presented unprecedented opportunities. Once again, our team
leveraged our financial flexibility and global asset base to capture
those opportunities to deliver shareholder value."
• Net sales and other
operating income increased 64% to $18.7 billion for the quarter ended
March 31, 2008.
• Selling prices increased
due principally to sharp rises in commodity prices.
• Third quarter segment
operating profit increased 54% to $913 million from $593 million last
year.
• Oilseeds Processing
operating profit increased as global demand for protein and oil improved.
• Corn Processing operating
profit decreased due principally to higher net corn costs.
• Agricultural Services
operating profit increased as highly volatile market conditions provided
exceptional merchandising opportunities.
• Other segment operating
profit increased due to improved margins and increased financial services
income.
Discussion of Operations
Net sales and other operating
income increased 64% to $18.7 billion for the quarter and 51% or $16.2
billion for the nine months.
Increased selling prices
resulting primarily from sharp rises in commodity prices accounted for
approximately 85% of the increase while higher sales volumes, principally
vegetable oil and meal, feed grains and wheat, accounted for the remaining
15% increase.
A summary of segment
operating profit and net earnings
Net earnings increased $154
million for the quarter and $223 million for the nine months due principally
to increased segment operating profit of $320 million for the quarter
and $657 million for the nine months partially offset by increased corporate
expenses for LIFO inventory valuations and minority interest elimination
for both the quarter and nine months.
Income taxes increased $45
million for the quarter and $103 million for the nine months due principally
to increased pretax earnings for both the quarter and nine months partially
offset by a lower effective tax rate for the quarter due to changes
in the geographic mix of earnings.
For more information, call
217-424-5413.
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