This quarter’s effective tax rate was 38 percent and included special factors. Excluding these items, the effective tax rate was 30 percent, in line with last year’s first quarter.
Oilseeds Earnings Improve Across All Three Regions
Oilseeds operating profit in the first quarter was $336 million, up $116 million from the same period one year earlier.
Crushing and origination operating profit was $256 million, up $150 million from the year-ago quarter on strong improvements by all three geographies. ADM’s U.S. soybean operations delivered very strong results amid good U.S. demand and meal exports. In Europe, soybean and rapeseed crushing earnings improved significantly.
Refining, packaging, biodiesel and other generated a profit of $28 million for the quarter, down $27 million, with steady results in North and South America offset by weaker European biodiesel results.
Cocoa and other results increased $27 million. Weaker cocoa press margins were offset by the absence of last year’s significant negative mark-to-market impacts.
Oilseeds results in Asia for the quarter were down $34 million from the prior year’s first quarter, principally reflecting ADM’s share of the results from its equity investee Wilmar International Limited.
Corn Processing Results Weak on Continued Ethanol Industry Challenges
Corn processing operating profit was $68 million, a decrease of $115 million from the same period one year earlier.
Sweeteners and starches operating profit increased $64 million to $94 million, as tight sweetener industry capacity supported higher year-over-year selling prices. The year-ago quarter’s results were negatively impacted by higher net corn costs related to the timing effects of economic hedges.
Bioproducts results in the quarter decreased $179 million to a loss of $26 million. Weak U.S. ethanol exports, strong Brazilian imports and slow E15 implementation kept industry margins negative.
Agricultural Services Down From Strong Prior-Year Results
Agricultural Services operating profit excluding the Gruma charge was $224 million, down $99 million from the same period one year earlier.