ADM earns up on accounting gain, adj profit falls (AP)
NEW YORK ? Agricultural processor Archer Daniels Midland Co. said Tuesday its fiscal first-quarter earnings rose 33 percent mostly due to an accounting gain. Without the gain, its adjusted profit fell from a year earlier on weak margins in its oilseeds business and high corn costs.
Shares slipped 17 cents to $28.77 in premarket trading.
The Decatur, Ill., company reported net income of $460 million, or 68 cents per share, compared with $345 million, or 54 cents per share, a year earlier.
Adjusted for the accounting issue and other items, ADM earned 58 cents per share, down from 67 cents a year earlier.
The company recorded a so-called "LIFO" gain of 11 cents per share in the most recent quarter, and a penny per share in debt exchange costs. LIFO, or last-in, first-out, assumes that a company sells its newest products first. If a product is sold for more than it was bought for, the difference is taken as a gain.
Net revenue rose to $21.9 billion from $16.8 billion.
Analysts expected adjusted earnings of 67 cents per share on lower revenue of $19.12 billion.
Operating profit in the company's oilseeds business fell to $221 million from $308 million a year earlier. Its corn processing operating profit fell to $179 million from $341 million in last year's fiscal first quarter. ADM's unit that provides agricultural services posted an improved operating profit of $244 million, up from $132 million a year ago.
ADM says it offset some cost pressures through hedging. It's seeing a smaller U.S. harvest than last year, but says global demand for crops remains solid.
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