Archer Daniels Midland 1Q profit doubles!
Posted on 2:44 PM, under Earnings, economy, oil prices, Stocks
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By JEREMY HERRON, AP Business Write
NEW YORK – Archer Daniels Midland Co. said Tuesday its fiscal first-quarter earnings more than doubled, beating Wall Street estimates as the company benefited from lower commodity prices and higher selling prices.
Its shares rose $3.41, or 16.2 percent, to $24.52 in afternoon trading.
The Decatur, Ill., based food processor and ethanol producer said profit in the quarter ended Sept. 30 rose to $1.05 billion, or $1.63 per share, up from $441 million, or 68 cents per share, last year.
The result beat the 69 cents per share expected by analysts in a Thomson Reuters poll.
Sales rose 65 percent to $21.16 billion, easily surpassing Wall Street's estimate of $15.98 billion. The gain came mostly from higher average selling prices, which ADM said arose from increases in underlying commodity costs.
Higher corn prices and energy costs sent ADM's corn-processing unit's operating profit lower by more than half. That was more than offset by the oilseeds-processing unit, where the company realized higher selling prices because it was one of the few suppliers of soy-bean crush when the U.S. harvest was delayed.
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NEW YORK – Archer Daniels Midland Co. said Tuesday its fiscal first-quarter earnings more than doubled, beating Wall Street estimates as the company benefited from lower commodity prices and higher selling prices.Its shares rose $3.41, or 16.2 percent, to $24.52 in afternoon trading.
The Decatur, Ill., based food processor and ethanol producer said profit in the quarter ended Sept. 30 rose to $1.05 billion, or $1.63 per share, up from $441 million, or 68 cents per share, last year.
The result beat the 69 cents per share expected by analysts in a Thomson Reuters poll.
Sales rose 65 percent to $21.16 billion, easily surpassing Wall Street's estimate of $15.98 billion. The gain came mostly from higher average selling prices, which ADM said arose from increases in underlying commodity costs.
Higher corn prices and energy costs sent ADM's corn-processing unit's operating profit lower by more than half. That was more than offset by the oilseeds-processing unit, where the company realized higher selling prices because it was one of the few suppliers of soy-bean crush when the U.S. harvest was delayed.
Read the rest of the story.....
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