ADM profit rises, new Cedar Rapids ethanol plant operating

Higher fourth-quarter and annual earnings were reported Tuesday by Archer Daniels Midland, which operates corn processing plants in Cedar Rapids and Clinton.

The Decatur, Ill.-based agribusiness giant also reported that its new $540 million dry mill ethanol plant in southwest Cedar Rapids has begun production and should be fully operational by the end of this month. In addition to ethanol, the plant also will produce a large quantity of dried distillers grains.

ADM posted fourth-quarter net income of $446 million, or 69 cents per diluted share, up sharply from $58 million, or 9 cents per diluted share, in the fourth quarter of fiscal 2009.  Net sales slipped to $15.7 billion from $16.5 billion in the fourth quarter of fiscal 2009.

For all of fiscal 2010, ADM recorded net income of $1.9 billion, or $3 per diluted share, up from $1.7 billion, or $2.62 per share, in fiscal 2009. Net sales fell to $61.7 billion from $69.2 billion in fiscal 2009.

Net earnings for the fourth quarter increased $388 million due to a $591 million pretax increase in segment operating profit, partially offset by higher corporate expense and a $111 million increase in income tax expense. Income tax expense increased due primarily to higher pretax earnings.

For the full fiscal year, net earnings increased $246 million due to a $786 million pretax increase in segment operating profit. That was partially offset by higher corporate expense, which included a $ 296 million after-tax negative impact from changing inventory valuations.

Profit from ADM's corn processing operations increased $151 million on stronger bioproducts results. ADM's oilseeds processing operations increased profit by $132 million due to improved margins and higher volumes.

Patricia Woertz, ADM chairwoman and chief executive officer, said the company finished fiscal 2010 with very good fourth-quarter earnings.

“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,” Woertz said.