ADM Crushes Estimates

The company's shares rise nearly 10%.
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Agricultural giant

Archer Daniels Midland

(ADM) - Get Report

said overall net income rose 17% for the fiscal second quarter as operating profits improved in its sweeteners and starches, oilseeds and corn-processing operations.

The Decatur, Ill., company said revenue for the quarter ended Dec. 31 rose 3% to $9.3 billion from about $9.1 billion in the same period a year ago. ADM earned $367.7 million, or 56 cents a share, compared with $313.5 million and 48 cents a share last year.

Earnings for the latest quarter include a $36 million tax credit related to the adjustment of state and federal income taxes. The year-ago second quarter had a gain of $45 million. Analysts surveyed by Thomson First Call expected earnings of 42 cents a share and sales of $9.2 billion.

Shares of ADM were jumping $2.79, or 9.7%, to $31.53. Volume was heavier than normal.

ADM said oilseeds processing had an operating profit of $128 million, up $9 million. The corn-processing segment's operating profit increased $105 million to $237 million, while sweeteners and starches posted an operating profit of $114 million, up $69 million.