ADM’s second quarter profit jumps
ASSOCIATED PRESS February 5, 2013 8:36AM
Archer Daniels Midland’s net income soared during the second quarter, unburdened by the same costs of restructuring the company that occurred during the same period last year.
The Decatur-based company also more than doubled its operating profit for oilseeds on strong global demand.
For the period ended Dec. 31, the agribusiness company earned $510 million, or 77 cents per share. That’s up sharply from $80 million, or 12 cents per share, a year earlier.
Removing an accounting gain and other items, earnings were 60 cents per share compared with 51 cents per share a year ago. The prior-year period included $352 million in impairment, exit and restructuring costs.
Revenue rose 7 percent to $24.92 billion from $23.31 billion.
Shares of Archer Daniels Midland Co. rose 3 percent, or 86 cents, to $29.30 before the opening bell.
ADM’s corn processing profit fell during the quarter, however, when stripping out the year-ago period’s charge. The company cited continued softness in ethanol margins.
Refining, packaging biodiesel and other reported a profit of $50 million, which was $27 million less than a year ago because of weakness in biodiesel margins in the U.S. and Europe.
Oilseeds operating profit was $411 million, up $202 million from the same period one year earlier.
Merchandising and handling earnings climbed to $129 million when taking out a gain related to the company’s investment in Australian grain handler GrainCorp. ADM said that U.S. soybean exports were solid in the quarter and that its international merchandising results improved.