Archer Daniels Midland Q1 Profit Falls on Weak Demand

ST. LOUIS – Archer Daniels Midland Co. (ADM) said Tuesday that its first-quarter profit tumbled 53 percent as the global recession dragged down demand for crops and ethanol, but demand is improving in some key markets.

CEO Patricia Woertz said sales improved from the first half of 2009, and the company was seeing some stronger demand as the U.S. economy pulls out of recession. "Earnings were significantly better than the second half of fiscal 2009," Woertz said in a statement.

The company said it earned $496 million, or 77 cents per share, compared with $1.04 billion, or $1.62 per share, last year.

The results widely beat Wall Street expectations, with analysts surveyed by Thomson Reuters forecasting a profit of 57 cents per share.

Revenue fell 29 percent, to $14.92 billion, from $21.16 billion, dragged down by declines in commodity costs. But sales volumes remained steady. Analyst expected revenue of $17.92 billion.

Crop and ingredient prices have fallen significantly from this time last year when a global food shortage had pushed commodity prices to record highs.

Source: AP

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