ADM reports a 53 per cent increase in operating profit

By Karen Willmer

- Last updated on GMT

Related tags: Operating profit, Archer daniels midland

Operating profit for the year ended 30 June increased by 53 per
cent to $3.16bn for Archer Daniels Midland, mainly due to
streamlining operations, the company said yesteday.

The company said this was due to its realignment and sale of assets in order to streamline its operations and focus on its core areas of expertise. As part of this, the company sold its Arkady business to Dutch bakery ingredients firm CSM for $55m. "Our realignment and sale of assets are on target,"​ said ADM's chairman Patricia Woertz yesterday. "Our strategic capital projects are all on schedule, and we see adequate global crops to meet all needs." ​In November, ADM announced a global growth strategy, focusing on the global increase in demand for biofuels. This is reflected in the increase in operating profit for the oilseeds processing segment from $598m to $1.1bn for the year. The company said this included a gain of $440m from the acquisition of Wilmar International, the largest agricultural processing business in Asia, earlier in the year. Total operating profit for total corn processing increased from $877m to $1.1bn for the year, and increased from $275m to $515m for the agricultural services segment. The increase in profit for the agricultural services segment included a gain in $153m from the sale of Agricore United, as well as improved global merchandising and transportation operating results, ADM said. The increase in corn processing operating profit for the year was due to higher average selling prices of sweetener and ethanol products. However, the segment's operating profit declined $45m to $241m for the final quarter due to higher net corn costs and lower ethanol sales volumes during these three months.

Related topics: Markets

Related news

Show more

Follow us

Products

View more

Webinars