Milling & Baking News - May 9, 2006 - (Page 1)

Theinewsweeklyiofigrain-basedifoods With profits up and new c.e.o., ADM bubbles with excitement DECATUR, ILL. - The share price of Archer Daniels Midland Co. surged last week, after the company announced sharply higher earnings and just days after a new chief executive officer was named. In New York Stock Exchange trading May 2, ADM shares closed at $41.96, a new 52-week high, up $3.96, or 10%, from the May 1 close. Over the past three years, since April 2003, ADM shares have essentially quadrupled, gaining 298%. While ADM's position as a leading ethanol producer has drawn considerable attention to the company, the earnings gain in the company's third quarter was driven principally by improvement LATE in oilseed processing profitability. Net income at ADM in the third quarter ended March 31 was $347,796,000, equal to 53c per share on the common stock, up 29% from $269,095,000, or 41c per share. Results in the year ago quarter included an after-tax gain of $74 million. Excluding this gain, third-quarter profits this year were up 78%. Sales were $9,122,841,000, up 8%. Oilseed Processing operating profit in the third quarter was $176,550,000, up 190%, from $60,734,000 in the same period last year. "Improved global market conditions Continued on Page 16 Kellogg to offer organic versions of popular cereals; earnings up BATTLE CREEK, MICH. - Organic versions of Mini-Wheats, Rice Krispies and Raisin Bran, new varieties of Special K snack bars and frozen entrees sold under the Kashi brand are among innovations planned for the months ahead that Kellogg Co. hopes will help sustain its sales and earnings momentum. Reflecting strong financial results, despite continuing cost pressures, Kellogg raised its earnings guidance for 2006. Net income at Kellogg in the first quarter ended April 1 was $274.1 million, equal to 69c per share on the common stock, up from $254.7 million, or 62c per share, in the same period of last year. Net sales were $2,726.5 million, up from $2,572.3 million a year ago. "The strong momentum we've built in Continued on Page 12 N E W S F E AT U R E ConAgra Foods sees role servicing ethanol and bio-diesel businesses Story on Page 30 inside MAY 9, 2006 / NEWS MINNEAPOLIS - General Mills, Inc. has named Kendall J. Powell as president and chief operating officer, a move that topped the list of several actions taken as part of a larger shift in organizational structure for the Minneapolis-based cereal maker's senior management team. The moves take effect June 1. In addition to being named president and c.o.o., Mr. Powell, 52, has been elected to the company's board of directors. Mr. Powell has been with General Mills for 26 years and was most recently executive vice-president and c.o.o. for the company's U.S. Retail unit. Earlier, he was president of the Yoplait Division from Continued on Page 8 Powell to president of General Mills Caravan Products to merge with American Ingredients Co. DIEMEN, THE NETHERLANDS - CSM Bakery Supplies North America last week unveiled plans to merge Caravan Products, Totowa, N.J., and American Ingredients Co., Kansas City, into a single operating company that will be known as Caravan AIC. The new company, which will be headquartered in Kansas City, is expected to be better focused and result in more cost savings. "We believe we will end up with a stronger company because of the merger," said Ron Ashton, chief executive officer of Continued on Page 9 THIS WEEK Flowers results merit ratings upgrades 10 W.F.C. eyes mothers in ad campaign 18 Ingredient Wide range of food aid issues at conference 24 Week sponsored by 38

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Milling & Baking News - May 9, 2006