Archer Daniels Midland Company
) adjusted earnings of 60 cents per share for the second-quarter
ended Dec 31, 2012 rose 17.6% from the year-ago period's adjusted
earnings of 51 cents, primarily due to improved segment operating
profits. Quarterly earnings also beat the Zacks Consensus
Estimate by a penny.
ARCHER DANIELS (ADM): Free Stock Analysis
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On a reported basis, the company reported earnings of 77 cents
per share, a substantial increase from 12 cents earned in the
Archer Daniels' quarterly net sales increased 6.9% year over year
to $24,921 million, significantly above the Zacks Consensus
Estimate of $21,957 million. The year-over-year growth in sales
was mainly attributable to improved performances at Oilseeds and
Agricultural Services segments, partially offset by weak results
at the company's Corn Processing segment.
Segment-wise, the company's Oilseeds Processing segment revenues
increased 1.2% year over year to $8,364 million and Agricultural
Services revenues grew 13.8% to $13,485 million. However,
revenues for the Corn Processing segment declined 3.7% to $3,041
Archer Daniels reported total segment adjusted operating profit
of $808 million, up approximately 136.3% from the year-ago
quarter, primarily due to improved operating income in all three
On a segmental basis,
segment recorded second-quarter operating profit of $411 million
compared with an operating profit of $209 million in the year-ago
period. The $202 million increase was driven by strong
performance delivered by the crushing and origination categories
across all regions.
Adjusted operating profit for
segment rose $77 million to $317 million driven by improved
soybean exports in the U.S., better international merchandising
results and synergies from investment in GrainCorp.
segment's operating profit came in at $3 million compared to an
operating loss of $129 million in the year-ago quarter. This was
primarily attributable to improved results of sweeteners and
starches offset by weak ethanol margins.
Operating profit from the
segment came in at $77 million, up $55 million from the last-year
quarter. The upside was driven by improvement in captive
insurance loss reserve adjustment and asset sale gains.
Archer Daniels ended the quarter with $1,714 million in cash and
cash equivalents compared with $864 million at the end of the
prior-year quarter. At quarter-end, long-term debt was $6,724
million. Shareholder's equity as of Dec 31, 2012 was $19,131
Besides Archer Daniels that currently carries a Zacks Rank # 4
(Sell), stocks performing well in the farm products industry are
Smithfield Foods Inc.
), both of which hold a Zacks Rank #1 (Strong Buy) and
Tyson Foods Inc.
), which has a Zacks Rank #2 (Buy).