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Ethanol demand spurs Archer Daniels profit

Archer Daniels Midland, a processor of oilseeds, corn and wheat, said Tuesday its fourth-quarter profit more than doubled, helped in part by a corn-processing profit jump on better ethanol prices.
/ Source: The Associated Press

Archer Daniels Midland, a processor of oilseeds, corn and wheat, said Tuesday its fourth-quarter profit more than doubled, helped in part by a corn-processing profit jump on better ethanol prices.

Quarterly profit totaled $410.3 million, or 62 cents per share, compared with a profit of $195.5 million, or 30 cents per share, during the same period last year.

Results include an $8 million security gain, an $11 million gain from the sale of long-lived assets, a Brazilian tax credit of $18 million, a $28 million charge relating to asset impairment and a $9 million charge relating to asset retirement.

Revenue edged up 1 percent to $9.55 billion from $9.42 billion last year.

Analysts, on average, predicted a profit of 52 cents on revenue of $9.78 billion, according to a Thomson Financial poll.

ADM said oilseeds processing operating profit grew 61 percent to $195 million, helped by market conditions. Corn processing operating profit increased 69 percent to $286 million due to better ethanol and sweetener selling prices and volumes.

For the year, profit climbed 25 percent to $1.31 billion, or $2 per share, from $1.04 billion, or $1.59 per share, during the same period last year.

Revenue rose 2 percent to $36.6 billion, from $35.9 billion last year.