ADM Profits Jump

NEW YORK - Feb 1/07 - SNS -- Archer Daniels Midland (ADM) reported pretax earnings of U.S. $628.7 million on sales of $10,976 million for the second quarter ending December 31, compared to earnings of $506.7 million on sales of $9,299 million during the same three month period the previous year.

Discussing the latest results, ADM noted oilseeds Processing operating profits increased $64 million to $192 million for the quarter and increased $134 million to $362 million for the six months due principally to improved gross margins in all geographic regions.

Corn Processing operating profits increased $99 million to $335 million for the quarter and increased $253 million to $626 million for the six months. Increased starch, sweetener and ethanol selling prices contributed to the earnings improvement and were partially offset by increasing net corn costs. Results for the quarter and six months ended December 31, 2005 included $15 million of employee severance costs associated with the closure of a citric acid plant.

Agricultural Services operating profits increased $29 million to $123 million for the quarter and increased $121 million to $234 million for the six months due principally to improved earnings of global grain merchandising operations and improved operating results of transportation operations.

Other segment operating profit increased $51 million to $117 million for the quarter and increased $32 million to $193 million for the six months principally due to increased earnings of Financial operations. Results for the quarter and six months ended December 31, 2005 included a $31 million asset impairment charge.

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