Milling & Baking News - May 15, 2012 - 31

Financial Results

ADM earnings down on ethanol and European oilseeds businesses
DECATUR, ILL. — Weak ethanol and European oilseeds markets weighed on earnings at Archer Daniels Midland Co. in the third quarter. Net income in the period ended March 31 was $399 million, equal to 60c per share on the common stock, down 31% from $578 million, or 86c per share, in the third quarter of fiscal 2011. ADM’s adjusted earnings per share, which excludes the impact of LIFO, restructuring costs and other adjustments, was 78c, down 12% from a year ago. Segment operating profit for the first quarter was $887 million, down 12% from $1,006 million in the same period a year ago. Net sales in the first quarter were $21,155 million, up 5% from $20,077 million in the same period a year ago. “This quarter, we delivered very good results despite difficult margin environments, particularly in ethanol and European oilseeds,” said Patricia Woertz, chairman and chief executive officer. “The strong third quarter last year set a high bar, and this quarter represents a solid performance by the team. “Looking ahead, planting is under way in North America, and we’re encouraged by the projected corn and soybean acreage.” In the company’s Corn Processing segment, operating profit fell 36% to $130 million from $204 million. Net sales and other operating income in the segment rose 15%, to $2,835 million from $2,463 million. Within the segment, sweeteners and starches profit rose 102% to $93 million while bioproducts profit decreased 77% to $23 million. ADM’s Oilseeds Processing segment profit eased 23% in the quarter, falling to $395 million from $512 million. Sales and other operating income in the segment rose 14% to $7,044 million. The company’s Agricultural Services segment posted a 5% increase in operating profit during the third quarter of fiscal 2012, climbing to $179 million from $171 million in fiscal 2011. Sales and other operating income in the segment fell 1% to $9,825 million from $9,876 million. The ADM Other segment posted operating income of $183 million, up 54% from $119 million, while sales and other operating income fell 8% to $1,451 million from $1,582 million. “Wheat milling results, including ADM’s share of Gruma S.A.B. de C.V., were essentially flat,” ADM said. For the nine months ended March 31, net income at ADM was $939 million, or $1.41 per share, down 43% from $1,655 million, or $2.55 per share, in the same period a year ago. Net sales and other operating income increased 15% to $66,363 million from $57,806 million. MBN

BAKER GIVES “STARTING FROM SCRATCH” A NEW MEANING

Income rises 11% for Seaboad’s trading, milling unit
SHAWNEE MISSION, KAS. — Operating income of the Commodity Trading and Milling Division of Seaboard Corp. in the first quarter ended March 31 increased 11% to $25,693,000 from $23,072,000, reflecting higher margins on commodity sales, especially wheat sales to non-consolidated affiliates, partially offset by mark-to-market adjustments. Excluding mark-to-market adjustments, operating income in the quarter increased 75% to $19,400,000 from $11,100,000. Division sales totaled $724,538,000 in the first quarter, up 2% from $712,231,000. In the company’s Sugar segment, operating income totaled $16,977,000 in the first quarter, down 24% from $22,439,000
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in the same period of fiscal 2011. Seaboard said the decrease reflected higher costs of sugar purchased from third parties for resale in excess of increased selling prices, and, to a lesser extent, higher selling and administrative personnel costs. Net sales for the Sugar segment in the first quarter rose 10% to $73,619,000 from $67,003,000. Overall, Seaboard Corp. net income in the first quarter was $82,209,000, equal to $68 per share on the common stock, down 30% from $116,864,000, or $96.11 per share, in the first quarter of fiscal 2011. Net sales for the quarter totaled $1,471,113,000, up narrowly from $1,468,179,000 in the same period last year. MBN

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ndependent baker Fred Piechocki comes from a proud family of bakers. However, during the Great Depression, his grandfather, Stanley, and father, Edward, lost their bakery. As a result, this third generation baker had no recipes or business to carry on. So what did Fred do? He started his bakery from scratch. In 1979, Fred opened The Cakery Bakery in Philadelphia, Pennsylvania. Ten years later, he moved to Warrington, Pennsylvania, where he and longtime friend, Henry Stoughton, opened the Warrington Pastry Shop. Fred describes his business as a European style, traditional bakery where products are baked from scratch every day. Best known for the 60 to 100 decorated cakes it produces a week, Warrington Pastry Shop also turns out 10 to 15 wedding cakes a weekend during prime wedding season. It is also well known for Danish, regular cakes, cupcakes, butter cakes, cinnamon buns and donuts. “My greatest accomplishment is to consistently produce a high-quality product,” said Fred. International® Bakers Services has played a key role in maintaining this quality. “When I started out, I received a sample of International® Bakers Services B&V® and I have used IBS flavors ever since,” Fred recalled. His bakery also uses chocolate, banana, rum, coconut and hazelnut flavors. “I am very happy with IBS products,” Fred stated. “They are easy to use, very consistent and economical. Most importantly, the flavors hold up.” “Using ingredients that will keep product quality high will make you proud to be an independent baker,” Fred advised. If you value consistent quality, you should get to know International® Bakers Services. Contact us toll-free at (800) 3457175, by fax at (574) 287-7161, or in writing at 1902 North Sheridan Ave., South Bend, Indiana 46628. We have the flavors your customers deserve.
Milling & Baking News May 15, 2012 / 31

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Milling & Baking News - May 15, 2012

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