Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 
OFFON

4-Traders Homepage  >  Equities  >  Nyse  >  Archer Daniels Midland Company    ADM

SummaryQuotesChartsNewsAnalysisCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsSector newsTweets 

Archer Daniels Midland Company : ADM 3Q Net Down 31% On Ethanol, European Oilseeds

share with twitter share with LinkedIn share with facebook
share via e-mail
0
05/01/2012 | 06:14pm CEST

--ADM reports 3Q profit declines on ethanol, Europe oilseed processing

--Shares jump as results beat expectations

--Excess ethanol supplies weigh on margins

--Global grain trading profits have stabilized

(Recasts, adds information on share price movement, comments from conference call.)

 
    By Ian Berry 
    Of  
 

Archer Daniels Midland Co.'s (ADM) fiscal third-quarter earnings fell 31% amid an ethanol supply glut and weak European oilseed processing results, but shares jumped as the results beat expectations and the company reported bigger-than-expected savings from recent job cuts.

The company, one of the world's largest grain traders and processors, has struggled in recent quarters as high market volatility has cut into trading profits, but it reported Tuesday that its global grain trading business has stabilized. Profits in its North American oilseed processing business, another source of problems for ADM, have also improved, the company said.

Shares were up 6.7% in recent trading to $32.88 a share.

The company's recent restructuring efforts, which included more than 1,200 job cuts, or more than 3% of the global workforce, will save the company $150 million, up from prior forecasts of $125 million, Chief Executive Patricia Woertz told investors in a conference call.

Woertz added that the decline in quarterly earnings was due in part to a particularly strong third quarter a year ago.

"We delivered very good results this quarter despite difficult margin environments particularly in ethanol and European oilseeds," Woertz said.

Ethanol profits fell sharply as expected, as excess production and stockpiles continues to weigh on the market. ADM reported earnings in its bioproducts division, which includes ethanol, fell 69% to $37 million.

Poor ethanol margins "have slowed industry production, improving alignment of supply and demand," the Decatur, Ill.-based company said. ADM has said it would maintain production while waiting for poor margins to cause smaller companies to cut back, and Chief Operating Officer Juan Luciano said Tuesday that scarce corn supplies could prompt some ethanol plants to halt production as early as this month, hastening the production cuts.

ADM and other ethanol companies are also counting on a summer increase in gasoline demand to help draw down ethanol supplies.

ADM's oilseeds processing segment's operating profit sank to $395 million from $512 million, even as sales rose 14%. Margins in Europe remained weak, the company said, but were "significantly offset" by improved results in North and South America.

Meanwhile, ADM's global grain trading business has stabilized. The company reported earnings of $179 million in its agricultural services segment, up $8 million from the prior year and within the company's historical range of $150 million to $200 million.

ADM's profits in the segment had tumbled previously amid poor international trading results. Extreme volatility in grains prices, which had made ADM and competitors cautious in trading, has since abated.

For the quarter ended March 31, the company posted a profit of $399 million, or 60 cents a share, down from $578 million, or 86 cents a share, a year earlier. Revenue increased 5.4% to $21.16 billion.

Analysts surveyed by Thomson Reuters were looking for earnings of $337.8 million, or 59 cents a share, on revenue of $21.38 billion.

Adjusted earnings excluding restructuring charges, an accounting method called LIFO and other items fell to 78 cents from 89 cents.

--By Ian Berry, Dow Jones Newswires; 312-750-4072; [email protected]

--Kristin Jones contributed to this report.

share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news on ARCHER DANIELS MIDLAND COM
04/27ARCHER DANIELS MIDLAND COMPANY : quaterly earnings release
04/27 ARCHER DANIELS MIDLAND : to Present at BMO Capital Markets 2017 Farm to Market C..
04/26 ARCHER DANIELS MIDLAND : ADM to Present at BMO Capital Markets 2017 Farm to Mark..
04/26 ARCHER DANIELS MIDLAND : meets diverse customer needs with innovative health-foc..
04/25 ARCHER DANIELS MIDLAND : ADM meets diverse customer needs with innovative health..
04/21 ARCHER DANIELS MIDLAND : ADM HR Chief Says EEOC Can Help Address National Shorta..
04/21 ARCHER DANIELS MIDLAND : ADM - Golden Peanut and Tree Nuts to Upgrade, Modernize..
04/21 ARCHER DANIELS MIDLAND : Golden Peanut and Tree Nuts to Upgrade, Modernize Argen..
04/20 ARCHER DANIELS MIDLAND : ADM to Release First Quarter Financial Results May 2, 2..
04/20 ARCHER DANIELS MIDLAND : Golden Peanut and Tree Nuts to Upgrade, Modernize Argen..
More news
Sector news : Food Processing - NEC
04/28DJMONDELEZ INTERNATIONAL : How BuzzFeed and Mondelez Brought Healthy Food Videos t..
04/27DJFrom Diapers to Soda, Big Brands Feel Pinch as Consumers Pull Back
04/26DJFrom Diapers to Soda, Big Brands Feel Pinch as Consumers Pull Back
04/26DJFrom Diapers to Soda, Big Brands Feel Pinch as Consumers Pull Back
04/26DJFrom Diaper to Soda Makers, Big Brands Feel the Pinch of a Consumer Pullback
More sector news : Food Processing - NEC
News from SeekingAlpha
04/27 WALL STREET BREAKFAST : Markets Prepare For ECB Meeting
04/27 ADM replaces top trader amid shakeup
04/25 Paying My Bills With Dividends - 2017 Q1 Update
04/15 The Market Is Going To Fall - My Dividend Growth Shopping List
04/15 Lessons In The Long Term Consumer Staples Data
Advertisement
Financials ($)
Sales 2017 64 032 M
EBIT 2017 2 250 M
Net income 2017 1 604 M
Debt 2017 4 185 M
Yield 2017 2,59%
P/E ratio 2017 16,06
P/E ratio 2018 14,89
EV / Sales 2017 0,47x
EV / Sales 2018 0,46x
Capitalization 26 108 M
More Financials
Chart ARCHER DANIELS MIDLAND COM
Duration : Period :
Archer Daniels Midland Com Technical Analysis Chart | ADM | US0394831020 | 4-Traders
Full-screen chart
Technical analysis trends ARCHER DANIELS MI...
Short TermMid-TermLong Term
TrendsNeutralNeutralNeutral
Technical analysis
Income Statement Evolution
More Financials
Consensus
Sell
Buy
Mean consensus HOLD
Number of Analysts 15
Average target price 44,2 $
Spread / Average Target -3,3%
Consensus details
EPS Revisions
More Estimates Revisions
Managers
NameTitle
Juan Ricardo Luciano Chairman, President & Chief Executive Officer
Ray G. Young Chief Financial Officer & Executive Vice President
Todd A. Werpy Chief Technology Officer & Senior Vice President
Patrick J. Moore Independent Director
Mollie Hale Carter Independent Director
More about the company
Sector and Competitors
1st jan.Capitalization (M$)
ARCHER DANIELS MIDLAND..0.22%26 108
NESTLE SA4.93%239 549
KRAFT HEINZ CO3.52%110 017
MONDELEZ INTERNATIONAL..1.58%68 648
DANONE6.61%45 855
GENERAL MILLS, INC.-6.90%33 134
More Results