World Grain - September 2010 - 15

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ADM fourth-quarter earnings up $388 million
DECATUR, ILLINOIS, U.S. - Archer Daniels Midland Company
(ADM) on Aug. 3 reported net earnings of $1.9 billion and segment operating profit of $3.2 billion for the year ended June 30, up $246 million
and $786 million, respectively, from the prior year. For fiscal year 2010,
ADM earned $3 diluted EPS, versus $2.62 for the year prior.
For the quarter ended June 30, net earnings increased $388 million
to $446 million, and segment operating profit increased $591 million
to $799 million from the company's totals for the same period one
year earlier.
ADM earned 69¢ diluted EPS for the fourth quarter, versus last year's
9¢ in the fourth quarter.
Profit in ADM's oilseeds processing segment increased $132 million
due to improved margins and higher volumes.
Corn processing profit increased $151 million on stronger bioproducts results.
In the agricultural services segment, profit increased $195 million as
ADM saw a good global supply of grains and oilseeds and modestly
improving demand, particularly in Asia.
Other business units' operating profit increased $113 million, reflecting improved results of ADM's cocoa and flour milling operations and
of equity investee Gruma S.A.B. de C.V.
"The ADM team finished strong, capping a very good year with very
good fourth-quarter performance," said Chairman of the Board and
Chief Executive Officer Patricia Woertz. "As we begin our new fiscal
year, our large projects are nearly finished and we commit to use our
strong balance sheet and cash flow to deliver shareholder value."
Profit in ADM's oilseeds processing segment increased $132 million
for the quarter and $120 million for the 12 months.
Crushing and origination results increased $77 million to $218 million for the quarter. Year-over-year crushing volumes increased in the
quarter, with decreased North American volumes more than offset by
increases in South America and Europe. Good positioning favorably im-

pacted North American and European soybean and
softseed crushing margins.
Refining, packaging, biodiesel and other results increased $58 million to $79 million for the
quarter. Recently expanded biodiesel production
capacity at Rondonopolis, Brazil allowed ADM to
capture good margins and volumes amidst strong
demand. Last year's quarter also included charges
related to the formation of the Stratas Foods packWoertz
aged-oil joint venture.
Asia results of $62 million for the quarter reflect ADM's share of Wilmar International, Ltd. earnings.
Corn Processing results increased $151 million for the quarter and
$537 million for the 12 months.
Sweeteners and starches operating profit decreased $30 million from
the prior year to $119 million. This decrease reflects lower average selling prices that were only partially offset by lower net corn costs. Sales
volumes increased due to strong export demand.
Bioproducts profit in the quarter was up significantly from last year's
loss due to better ethanol and lysine margins.
At present, ADM has begun production at its Cedar Rapids, Iowa,
U.S., ethanol dry mill, which was expected to be operational by the end
of August. In Decatur, Illinois, U.S., the company is working through
start-up issues at its propylene glycol plant, which should be fully operational by end of the calendar year.
In the quarter, ADM saw a good global supply of grains and oilseeds
and modestly improving demand, especially from Asia.
Other processing businesses were up $108 million for the quarter, reflecting improved results of ADM's cocoa and flour milling operations
and from equity investee Gruma S.A.B. de C.V. Other processing earnings for the quarter include mark-to-market gains of $63 million related
to certain forward sales commitments accounted for as derivatives.

Cargill to rebuild Pennsylvania feed manufacturing facility
CHAMBERSBURG, PENNSYLVANIA, U.S. - Cargill announced on Sept. 3 that the company will rebuild its feed mill
that was destroyed by a fire on Feb. 12. The mill, known as the
Letterkenny Feed Depot, burned to the ground in the early morning hours that day. According to Cargill officials, the rebuild will
include many upgrades to the mill's capabilities.

Construction of the new mill was expected to commence in September, with feed manufacturing production going online by next spring.
The new mill will possess an annual production capacity in excess of
100,000 tonnes and will be equipped with upgraded features, including
a computerized batch-mixing system and fully automated grinding and
receiving systems.

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Fabric Belt
Driers/Coolers
AMANDUS KAHL GmbH & Co. KG
Dieselstrasse 5-9, D-21465 Reinbek / Germany
Phone: +49 40 727 71 0, Fax: +49 40 727 71 100
info@amandus-kahl-group.de

COIKAHL

www.akahl.de
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World Grain - September 2010

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