ADM 4th-quarter profit falls on higher taxes

Archer Daniels Midland, with operations in southwest Cedar Rapids, on Tuesday posted lower fourth-quarter earnings primarily due to higher taxes.

The Decatur, Ill., agribusiness giant recorded net income of $381 million, or 58 cents per diluted share, for the quarter that ended June 30, down from $446 million, or 69 cents per diluted share, in the same quarter of fiscal 2010. Sales rose to $22.9 billion from $15.7 billion in the final quarter of fiscal 2010.

ADM attributed the lower fourth-quarter earnings to higher income tax expense of $ 280 million. This was partially offset by higher segment operating profit of $89 million and inventory valuation credits caused by lower agricultural commodity prices at the end of the quarter compared to the beginning of the period.

Fourth-quarter corn processing operating profit was $118 million, a decline of $22 million from the same quarter last year. While processed volumes were up 15 percent, net corn costs increased significantly from the fourth quarter of last year.

For the year ended June 30, ADM posted net income of $2 billion, or $3.13 per diluted share, up from $1.9 billion, or $3 per diluted share, in fiscal 2010. Sales rose to $80.7 billion in fiscal 2011 from $62.7 billion in fiscal 2010.

ADM said corn and soybean supplies are tight in the United States. Overall global crop supplies remain adequate following a good world wheat harvest and a record soybean harvest in South America.

ADM said it is monitoring crop progress and harvests in Europe, North America and China.

On a global basis, ADM said demand for crops and agricultural products remains strong. Global protein meal and vegetable oil demand continues to grow, while industry margins remain under pressure.

Export demand continues to drive strong U.S. corn sweetener volumes. With positive blending economics, ADM said ethanol consumption in the U.S. remains at maximum blendable levels.

ADM processes corn in Cedar Rapids for ethanol and high fructose corn syrup.