Biofuels Make Very Good Year For ADM

Cindy Zimmerman

ADM 2007 has been a pretty good year for Archer Daniels Midland Company, with investors looking at gains of over 30 percent thanks in a large part to increased demand for ethanol.

ADM earnings skyrocketed this year, according to an AP report, more than doubling in its fiscal first quarter ended Sept. 30 to easily beat Wall Street estimates.

In the first half of the year, the stock surged close to 90 percent. But investor enthusiasm has waned in recent months, mostly as oil prices continue to cool and drive down spot prices for ethanol. Since the summer driving season ended, the price of crude has declined to the $60/barrel range and shares of Archer-Daniels have shed about 23 percent of their value.

ADM shares traded at $32 Friday on the New York Stock Exchange where the stock has ranged between $24.05 and $46.71 over the past 52 weeks.


Read more.

Ethanol, News