ADM Reports Q2 Profit

NEW YORK - Aug 4/15 - SNS -- ADM reported net earnings of U.S. $386 million on sales of $17,186 million for the second qurter ending June 30, compared to $533 million on sales of $21,494 million during the same three-month period last year.

This lifted fiscal year to date net earnings to $879 million on sales of $34,692 million, compared to net earnings of $800 million on sales of $42,192 million during the oprevious fiscal year.

Commenting on the results, ADM Chief Executive Officer Juan Luciano sad, "Good meal demand supported strong North American soybean crushing results. And South American origination and export volumes were up, leading to good throughput at our expanded origination and port network. These, combined with the flexibility of our global crush plants, helped the Oilseeds team deliver another strong performance.

"Ag Services earnings were impacted by lower margins and volumes of North American exports, as they were less competitive globally, and by a sharp upward move in commodity prices at the end of the quarter. But, within our Ag Services segment, the milling business had record second-quarter results."

ADM reported that Agricultural Services operating profit was $127 million, down $57 million from the year-ago period. Merchandising and handling earnings declined $74 million to $41 million.

Strong South American exports that benefited the Oilseeds business segment reduced margins and volumes of North American exports reflected in Agricultural Services. In addition, Global Trade Desk profits were negatively impacted by the significant end-of-quarter increase in certain commodity prices as well as reduced volumes and margins.

Transportation results declined $8 million to $19 million, amid lower barge freight demand and increased costs related to high-water conditions in the U.S.

Milling and other results improved $25 million to $67 million, due mainly to higher product margins and strong merchandising results. ADM's global milling operations had record second-quarter results.