ADM Fiscal 4Q Profit More Than Doubles

Agricultural processor Archer Daniels Midland Co. {ADM} said Monday its fiscal fourth-quarter profit more than doubled, pushed up by more than $600 million in asset sales.

Earnings from continuing operations, however, were hurt by declines in both oilseed- and corn-processing businesses.

Profit for the quarter ended June 30 totaled $954.8 million, or $1.47 per share, from $410.3 million, or 62 cents per share, during the same period a year earlier. Results include $616 million in one-time gains on asset sales.

Net sales rose 28 percent to $12.21 billion from $9.55 billion a year earlier.

Analysts polled by Thomson Financial expected a profit of 59 cents per share on revenue of $10.13 billion. The earnings estimates typically exclude one-time items.

Its shares rose 50 cents to $35.55 in morning trading Monday.

"Our realignment and sale of assets are on target," ADM Chief Executive Officer Patricia Woertz said in a news release. "Our strategic capital projects are all on schedule, and we see adequate global crops to meet all needs."

ADM's one-time gains included $616 million after taxes from the swap of its interest in a number of Chinese joint ventures for shares in Wilmar International Ltd., a Singapore-based agricultural processor with operations across Asia. ADM also booked a $153 million gain on the sale of its interest in Agricore United, a Canadian agricultural processor.

For the fiscal year, ADM's net income rose 65 percent to $2.16 billion, or $3.30 per share, from $1.31 billion, or $2 per share, last year.

Revenue rose 20 percent to $44.02 billion from $36.6 billion last year.

Corn processing operating results fell 16 percent for the quarter to $241 million, due to higher net corn costs and lower ethanol sales volume. Excluding one-time gains, oilseed processing profit fell $48 million for the quarter to $147 million.