NEW YORK, Nov 3 (Reuters) - U.S. agricultural processor
Archer Daniels Midland Co reported much-higher-than-expected
quarterly earnings on Tuesday as lower corn costs bolstered
profit in its corn processing segment.
ADM is the second-largest producer of ethanol, made from
corn, in the United States and will be the largest once two new
plants currently under construction come on line.
Government forecasts for the second-largest corn crop ever
helped drag corn prices to their lowest level of 2009 in the
quarter.
For the fiscal first quarter that ended Sept. 30, ADM
reported a net profit of $496 million, or 77 cents per share,
compared with last year's record-large first-quarter profit of
$1.05 billion, or $1.62 per share.
Analysts on average were expecting 57 cents per share,
according to Thomson Reuters I/B/E/S.
Net sales fell 29 percent to $14.92 billion, hurt by lower
selling prices and the impact of foreign exchange translation.
The company said average selling prices decreased in line
with drops in underlying commodity costs. It said there were no
material changes in overall sales quantities.
Profit in ADM's oilseeds processing unit tumbled 44 percent
due to lower margins and production volumes, resulting from a
short global soybean supply. Profit in its agricultural
services division fell 59 percent on reduced demand and less
volatile commodity market conditions.
Profit in the corn processing unit rose 59 percent on lower
corn and manufacturing costs.
ADM shares rose 2 cents to $30.54 in light premarket
trade.
(Reporting by Martinne Geller; Editing by Derek Caney and John
Wallace)
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