(RTTNews) - Agricultural commodities and products processor Archer Daniels Midland Co. (ADM: News ) reported Tuesday a sharp fall in profit for the first quarter, reflecting lower processing volumes and average selling prices, as well as foreign exchange translation impacts. Quarterly earnings per share, however, topped market projections, while net sales missed Street view. Looking ahead, the Decatur, Illinois-based company said it sees demand improving in some key markets.

First-quarter net earnings attributable to the company were $496 million, down 53% from last year's $1.05 billion. On a per share basis, earnings fell 52% to $0.77 from $1.62 in the same quarter a year ago.

On average, ten analysts polled by Thomson Reuters expected the company to report earnings of $0.56 per share for the quarter. Analysts' estimates typically exclude special items.

Net sales for the quarter plunged 29% to $14.92 billion from $21.16 billion a year ago, and missed four Wall Street analysts' consensus revenue estimate of $17.22 billion.

The company attributed the fall in net sales primarily to decreased average selling prices and, to a lesser extent, foreign exchange translation impacts. The company said that average selling prices decreased in line with year-over-year declines in underlying commodity costs, and there were no material changes in overall sales quantities.

Total processing volumes in the quarter fell to 12.90 million metric tons from 13.49 million metric tons in the previous year. Segment operating profit declined 34% to $774 million from $1.18 billion last year.
Archer Daniels, one of the largest agricultural processors in the world, operates processing and manufacturing facilities, and processes crops to make food ingredients, animal feed ingredients, renewable fuels and naturally derived alternatives to industrial chemicals.

Segment-wise, Oilseeds Processing sales totaled $6.36 billion in the quarter, down from prior year's $7.77 billion, and processing volumes fell to 6.37 million metric tons from 7.02 million metric tons in the previous year. Operating profit for the segment declined to $284 million from last year's $510 million, on lower margins and production.

In the Corn Processing segment, sales for the quarter declined to $1.92 billion from $2.24 billion last year, while processing volumes grew to 4.62 million metric tons from 4.59 million metric tons in 2009. The segmental operating profit rose to $188 million from prior year's $118 million on lower net corn and manufacturing costs.

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