Milling & Baking News - November 16, 2010 - 15

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ADM wheat milling business better;
gains in corn, oilseeds divisions
DECATUR, ILL. - Improved results
in the company's flour milling business were more than offset by lower
results in the remaining parts of the
Other division of Archer Daniels
Midland Co. in the first quarter ended
Sept. 30. Quarterly operating income
was up for the ADM Corn Processing
and Oilseeds Processing segments.
ADM net income in the quarter
totaled $345 million, equal to 54c
per share on the common stock,
down 30% from $496 million, or
77c per share, in the first quarter of
fiscal 2010.
Net sales were $16,799 million, up
13%.
Patricia Woertz, ADM chairman
and chief executive officer, said strong
global demand makes her confident
about the company's prospects.
"The ADM team performed solidly
in both corn and oilseeds with both
businesses well positioned to meet
demand," she said. "Agricultural Services results were impacted by crop
supply shifts early in the quarter.
As we look at markets today, global
demand is generally strong. This
presents ADM with the opportunity
to grow shareholder value by doing

what we do best: use our assets and
our acumen to connect crops from regions where they're available to markets where they're needed."
The Other segment, which includes
wheat milling, cocoa
processing and the company's minority interest
in Gruma S.A.B. de C.V.,
sustained a first-quarter
operating loss of $16 million, versus a $127 million
profit in the same period
last year.
Processing alone saw
an $81 million decrease in
profits. Results included
mark-to-market losses of $59 million,
versus gains of $17 million in the first
quarter last year. The change reflected
"certain forward purchase and sales
commitments accounted for as derivatives," ADM said.
ADM attributed the remaining $62
million in operating earnings decline
to higher captive insurance loss provisions, principally due to a settlement
in connection with a 2008 fire and explosion at the company's export elevator located in Destrehan, La.
The company is in the process of

Funnel cake fries sales boost J&J Snack profit
PENNSAUKEN, N.J. - Strong results across the food service, retail
supermarket and frozen beverage
businesses of J&J Snack Foods Corp.
helped drive a 17% earnings gain in
fiscal 2010. Net income in the year
ended Sept. 25 totaled $48,409,000,
equal to $2.61 per share on the common stock, up from $41,312,000, or
$2.23 per share, in fiscal 2009.
Sales in fiscal 2010 were
$696,703,000,
up
7%
from
$653,047,000 a year ago.
For the fourth quarter ended Sept.
25, net income was $16,457,000,
or 89c per share, up 11% from
$14,820,000, or 80c per share, in the
same period a year ago. Net sales
totaled $200,511,000, up 10% from
$182,792,000.
"We had another successful year,"
said Gerald B. Shreiber, president
and chief executive officer. "Each of
our major businesses contributed to
our record sales and earnings."
Operating income in the food service segment totaled $50,255,000,

bakingbusiness.com / world-grain.com

up 12% from $45,024,000 in fiscal
2009. Sales to food service customers increased $19,206,000, or 5%,
in fiscal 2010, to $436,959,000. During the year, sales of funnel cake
fries to Burger King accounted for
more than 66% of the food service
sales increase. Soft pretzel sales to
the food service segment rose 1% to
$100,694,000.
Bakery product sales, excluding
biscuit and dumpling sales and
fruit and fig bar sales, increased
$5,606,000, or 3%. Biscuit and
dumpling sales increased 1% to
$33,326,000 in the year, while fig
and fruit bar sales decreased 4% to
$31,715,000 due primarily to lower
sales to one customer who discontinued a particular product.
J&J Snack said sales of new products in the first 12 months since their
introduction were approximately
$29 million in fiscal 2010.
Frozen beverage and related
product sales increased 8% to
$182,778,000. MBN

Financial Results

working with its reinsurers and expects to recover a significant part of
these losses over the next 12 months.
Wheat and cocoa processing volumes were 1,885,000 tonnes in the
first quarter, down 1% from the first
quarter last year. Sales were $1,627
million, up 23%.
Corn Processing operating income in the first quarter was $341 million, up
81% from $188 million.
Volume was 5,834,000
tonnes, up 26%. Sales
were $2,178 million,
up 14%.
Operating profits for
sweeteners and starches
were down $48 million
from the prior year to
$146 million. Average
selling prices were lower, and the decline was not fully offset by lower net
corn costs. Sales volumes grew, boosted by strong export demand and better domestic demand for industrial
starches.
Bioproducts profits were strong,
in contrast with the loss last year.
Improved ethanol and lysine margins and favorable corn ownership
position and higher ethanol volumes
boosted profits. The company recorded a $32 million charge from costs
related to the start-up of new plants.
Oilseeds Processing operating income
was $308 million, up 8% from $284 in
the first quarter of fiscal 2010. Processing volume was 6,794,000 tonnes, up
7%. Sales were $6,460 million, up 2%.
In Oilseeds Processing, crushing
volumes rose more than 6% from the
first quarter last year. Margins improved.
Agricultural Services operating
income was $132 million, down 25%
from $175 million in July-September
2010. Net sales were $6,534 million,
up 23%.
"Merchandising and handling
profit decreased from last year, due
primarily to negative impacts from
supply shifts early in the quarter as
a result of drought conditions and
government actions in the Black Sea
region," ADM said. "These negative
impacts were only partially offset
by a $65 million insurance settlement related to ADM's Destrehan,
La., export elevator and by increased
volumes driven by the early U.S.
harvest. Earnings from transportation operations improved on higher
barge-freight rates and volumes
which were also driven by the early
U.S. harvest." MBN
Milling & Baking News November 16, 2010 / 15

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Milling & Baking News - November 16, 2010

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