World Grain - March 2009 - 14

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ADM earnings rise in second quarter
DECATUR, ILLINOIS, U.S. - Net income of Archer Daniels Midland Co. (ADM) in the second quarter ended Dec. 31 was $585 million, equal to 91¢ per share on the common stock, up 24% from $473
million, or 73¢ per share in the second quarter of fiscal 2008. Net sales
were $16.673 billion, up 1%.
The company attributed the higher net income "principally to the
positive impact on corporate results of the changes in LIFO (last in/
first out) inventory valuations." Operating income was down during
the quarter.
While overall operating income was lower during the second quarter, the company's Oilseeds Processing and Agricultural Services segments enjoyed strong results.
Operating profits of Oilseeds Processing were $319 million in the
second quarter, up 46% from $219 million in the same period in fiscal
2008. The company said profit was up in all geographic regions except
South America. The gains reflected improved crushing and origination
margins, offset by lower fertilizer profitability. Refining, packaging
and biodiesel results were up. For the six months ended Dec. 31, operating earnings were $829 million, up 94%.
Corn Processing operating earnings in the second quarter plunged

to $29 million, down 89% from $275 million in the second quarter last
year. The decline reflected weaker ethanol operating conditions. For
the six months, operating profits were $147 million in Corn Processing, down 72%.
In a Feb. 3 conference call, Woertz elaborated on quarterly results,
including the difficulties faced by ADM's Corn Processing segment.
"We saw losses in our ethanol business as we experienced declining market prices, declining demand, and we wrote down our ethanol inventories," said Patricia Woertz, chairman, president and chief
executive officer. "The ethanol business is still challenging. While
we did foresee the overbuilding of some supply a while ago, we did
not foresee the depth of this current economic crisis or the decline
in gasoline demand. Incremental blending, which in the past above
the mandate had been increasing nicely, substantially stopped. We
do have good reason to believe in the longer-term opportunities for
ethanol as we work our way through this oversupply situation."
Steven R. Mills, chief financial officer and executive vice-president, said in wheat flour milling ADM sees "steady demand, and the
large North American wheat crop has provided ample milling quality
wheat for the industry."

Income for The Andersons down 52% in year
MAUMEE, OHIO, U.S. - For the year ended Dec. 31, income for
The Andersons was $32,900,000, equal to $1.82 per share on the
common stock, down 52% from $68,784,000, or $3.86 per share,
during the previous year.
Sales and revenue for the year were $3,489,478,000, up 47%
from $2,379,059,000 during the previous year.
For the year, the grain and ethanol segment had an operating income of $43.6 million, down 34% from $65.9 million during the
previous year. Revenue for the segment was $2.4 billion, up 60%
from $1.5 billion during the previous year.
"Although our full-year earnings could be viewed as respectable

versus history since they are our third best historical performance,
this is overshadowed by the fact that I am deeply disappointed
in our fourth-quarter results - we could have done better," said
Mike Anderson, president and chief executive officer. "The decline in our results was largely a result of inventory and contract
adjustments within our Plant Nutrient Group."
For the fourth quarter, the company had a loss of $33,389,000,
which compared with income of $23,492,000 during the same
quarter of the previous year. Sales and revenue for the quarter were
$770,065,000, down 2% from $784,634,000 during the same quarter
of the previous year.

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World Grain - March 2009

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