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ADM Reports
4Q Net Earnings of $372 Million; Annual Net Earnings of $1.8 Billion
Decatur, IL—Archer
Daniels Midland Company reported
August 5 net earnings for the year ended June 30 of $1.8 billion,
down from $2.2 billion for the year ended June 30, 2007.
4Q 2008 net earnings
were $372 million, compared to net earnings of $583 in 4Q 2007.
Annual
Overview
• Net earnings for the year ended June 30, 2008
decreased 17 % to $ 1.8 billion - $ 2.79 per share from $ 2.2 billion
- $ 3.30 per share.
Net earnings for the year ended June 30, 2007 include
after-tax gains on asset sales of $ 665 million - $ 1.01 per share.
• Net sales and other operating income for the
year ended June 30, 2008 increased 59 % to $ 69.8 billion from $ 44.0
billion last year due principally to higher average selling prices resulting
primarily from increases in underlying commodity costs.
• Segment operating profit hit a new record of
$ 3.4 billion for the year, up $ 280 million from fiscal 2007 due principally
to improved operating results of Agricultural Services and crushing
and origination earnings in Oilseeds Processing.
CEO Comments
“ADM’s 2008 results demonstrate the ability
of our people to leverage our global assets against an exceptional set
of opportunities” said Patricia Woertz, Chairman and CEO.
“We had an outstanding year, highlighted by record
segment operating profit.
"ADM met the needs of food, feed, fuel and industrial
customers even as strong demand for crops and commodities challenged
the global supply chain.”
4Q Overview
• Net earnings for the fourth quarter decreased
$ 583 million to $ 372 million - $ .58 per share from $ 955 million
- $ 1.47 per share last year.
Net earnings for the quarter ended June 30, 2007 includes
after-tax gains on asset sales of $ 616 million - $ .95 per share.
• Net sales and other operating income increased
78 % to $ 21.8 billion for the quarter ended June 30, 2008, due principally
to higher average selling prices resulting primarily from increases
in underlying commodity costs.
• Segment operating profit for the quarter decreased
33 % to $ 777 million.
This decrease was due primarily to gains on asset sales
in the prior year fourth quarter.
Oilseeds
Processing operating profit decreased as fourth quarter 2007
results included a $ 440 million gain related to the exchange of the
Company’s interests in certain Chinese joint ventures for shares
in Wilmar International Ltd. Global demand for vegetable oil and protein
meal continued to be strong.
Corn Processing
operating profit increased due primarily to increased ethanol sales
volumes and higher average selling prices of Sweeteners and Starches.
Agricultural
Services operating profit decreased due principally to the
$ 153 million gain on the sale of the Company’s investment in
Agricore United recognized in the fourth quarter of 2007 partially offset
by increased sales volumes and margins.
Discussion
of Operations
Net sales and other operating income increased 78 %
to $ 21.8 billion for the quarter and 59 % to $ 69.8 billion for the
twelve months.
For both the quarter and year, higher selling prices
resulting primarily from sharp rises in underlying commodity costs accounted
for approximately 90 % of the increase while higher sales volumes, principally
ethanol and merchandised oilseeds and grains, accounted for the remaining
10 % increase.
For more information,
call 217-424-5413.
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