GO
Loading...

Archer-Daniels Profits Rise 20%, Helped By Ethanol Demand

CNBC.com
Friday, 2 Feb 2007 | 10:31 AM ET

Archer-Daniels Midland , the nation's largest food processor, said its second-quarter profit rose 20%, driven in large part by a jump in corn-processing profit.

Net income in the second quarter ended Dec. 31 climbed to $441.3 million, or 67 cents a share, from $367.7 million, or 56 cents a share, a year earlier.

Revenue rose 18% to $10.98 billion from $9.3 billion a year ago.

The results topped Wall Street's expectations. Analysts polled by Thomson Financial had expected a profit of 60 cents per share on $9.52 billion in revenue.

"We are particularly pleased with the strong performance from all segments," ADM Chief Executive Officer and President Patricia Woertz said.

The Decatur-based company is also the country's largest producer of the fuel additive ethanol, made from corn.

ADM's corn-processing business, which includes its ethanol production, had a particularly strong quarter. Operating profit increased 42% from a year earlier to $335 million.

Strong prices for both ethanol and corn-based sweetener helped those results, according to ADM, but they were somewhat offset by high corn prices. Demand for ethanol has driven corn prices up in recent months.

The company held a conference call at 9am New York time.

  Price   Change %Change
ADM
---

Featured

Contact U.S. News

  • CNBC NEWSLETTERS

    Get the best of CNBC in your inbox

    › Learn More

Don't Miss

U.S. Video

  • Rob Sanderson, MKM Partners analyst, breaks down the Internet giant's first quarter results. It's slight growth but far from what we need to see, says Sanderson.

  • China's economy grew an annual 7.4 percent in the first quarter, beating expectations, reports CNBC's Eunice Yoon.

  • Bitcoin. Digital gold rush or a shadowy tool empowering criminals on the dark web? What is really driving The Bitcoin Uprising? CNBC's Mary Thompson takes an in-depth look at this emerging digital currency by speaking to the bitcoin faithful, who believe the open source currency will upend the global financial system, as well as those who believe bitcoin is an easily manipulated tool that empowers criminals, hackers and drug barons in the dark online underworld. Although the future of bitcoin is uncertain, The Bitcoin Uprising sheds much needed light on the speculative currency and the future of money.