ADM posts impressive quarter profit increases
quarter ended 31 March 31 2006 - a good platform for the new CEO to
build from.
Net earnings of $ 348m included a gain of $ 74 million, representing the company's gain upon the sale of its interest in Tate & Lyle.
In addition, third quarter operating profit increased 46 percent to $ 549 million from $ 377 million last year.
Oilseeds Processing operating profit increased on improved global market conditions, while Corn Processing operating profit increased principally due to improved ethanol and sweetener selling prices.
"This quarter's solid results across ADM's major business lines improve the outlook for fiscal 2006, " said G Allen Andreas, chairman of the board of directors.
Taken by segment, Oilseeds Processing operating profit increased $ 116 million to $ 177 million for the quarter and increased $ 133 million to $ 404 million for the nine months as improved global market conditions resulted in improved operating results in North American, South America, Europe and Asia.
Corn Processing operating profit increased $ 41 million to $ 219 million for the quarter and increased $ 179 million to $ 591 million for the nine months reflecting improved starch, sweetener and ethanol selling prices and lower net corn costs.
Sweeteners and Starches operating profits increased $ 33 million to $ 113 million for the quarter and increased $ 140 million to $ 320 million for the nine months due to lower net corn costs and increased sweetener and starch selling prices, partially offset by higher energy costs.
And Bioproducts operating profits increased $ 7 million to $ 105 million for the quarter and increased $ 38 million to $ 271 million for the nine months due to lower net corn costs and higher ethanol selling prices, partially offset by increased energy costs.
The solid quarter results follow ADM's recent appointment of Patricia A. Woertz as the firm's new chief executive. Woertz, who will succeed G. Allen Andreas, has extensive experience in the oil industry, suggesting that the ingredients giant plans to further diversify into this field.
"Pat Woertz is a proven executive with an exceptional blend of strategic, analytic, business and leadership skills," said Andreas.
"Her selection was endorsed unanimously by our Board of Directors, and we are confident that she is the ideal person to sustain ADM's strong performance and lead the Company into the next chapter of its history."
Woertz becomes only the 8th CEO in the 104-year history of ADM. Her appointment also makes ADM the largest publicly traded company, based on revenue, to have a female CEO.
ADM is one of the world's largest processors of cocoa, soybeans, corn and wheat, as well as a leader in the production of soybean oil and meal, ethanol, corn sweeteners and flour. The company, which owns over 250 processing plants, last year reported net sales of $35.9 billion.
