Adjusted EPS of $0.38, down from year-ago quarter
Segment operating profit declined on negative ethanol margins and weaker Ag Services results
For the full fiscal year, dividends and share repurchases of nearly $1 billion
DECATUR, Ill.--(BUSINESS WIRE)--Archer Daniels Midland Company (NYSE: ADM) today reported financial
results for the quarter ended June 30, 2012. The company reported net
earnings for the quarter of $284 million, or $0.43 per share, down from
$0.58 per share in the same period one year earlier. Adjusted earnings
per share1 were $0.38. Segment operating profit1
was $544 million.
For the fiscal year ended June 30, 2012, net earnings were $1.2 billion,
or $1.84 per share. Adjusted earnings per share were $2.25. Segment
operating profit was $2.5 billion.
“In a challenging fourth quarter, solid results from our global oilseeds
business, particularly in South America, were more than offset by
negative U.S. ethanol margins and weaker U.S. merchandising results,”
said ADM Chairman and CEO Patricia Woertz.
“As we look ahead, while drought has reduced the potential size of the
U.S. corn crop, we are tracking the development of other crops in North
America and Europe,” added Woertz. “While U.S. crop carryouts are
expected to be low, we have an experienced business team to manage
through this environment.
“Conditions like these demonstrate the vital role of our global
agribusiness. As weather has regional effects on crops, we respond by
working with our customers to provide the best alternatives to meet
their needs from all growing regions of the world.”
Fourth Quarter 2012 Highlights
-
Adjusted EPS of $0.38 excludes a LIFO credit of $0.05 per share.
-
Oilseeds Processing performed well; the decline of $118 million was
primarily due to the absence of significant favorable timing effects
and weaker results in cocoa and other.
-
Corn Processing results decreased $48 million as negative ethanol
margins more than offset improved results from sweeteners and starches.
-
Agricultural Services profit fell $222 million, as tight U.S. crop
supplies impacted both export volumes and U.S. merchandising results.
-
Other Financial results increased $11 million on lower insurance loss
reserves.
-
ADM returned $160 million to shareholders in the quarter. For the
fiscal year, ADM returned nearly $1 billion to shareholders.
Adjusted EPS of 38 Cents, down 31 Cents
Adjusted EPS decreased primarily due to lower segment operating profit,
partially offset by lower corporate expenses.
The effective tax rate for the quarter was 30 percent, resulting in an
annual rate of 30 percent.
Oilseeds Earnings Down on Absence of Year-Ago Timing Gains and
Weakness in Cocoa and Other
Oilseeds operating profit in the fourth quarter was $331 million, down
$118 million from the same period one year earlier.
Crushing and origination operating profit was $150 million, down $76
million from the year-ago quarter. Significantly improved South American
soybean and origination results were offset by lower North American
softseeds crushing margins, and the absence of favorable mark-to-market
timing effects in Europe that benefited the prior year. The net decrease
in results from timing effects was approximately $70 million.
Refining, packaging, biodiesel and other generated a profit of $84
million for the quarter, down $6 million mainly on weaker biodiesel
results from Europe.
Cocoa and other results declined $19 million, primarily due to weaker
cocoa press margins in the quarter.
Oilseeds results in Asia for the quarter were down $17 million from the
prior year’s fourth quarter, principally reflecting ADM’s share of the
results from its equity investee Wilmar International Limited.
Corn Processing Results Lower on Negative Ethanol Margins
Corn processing operating profit was $74 million, a decrease of $48
million from the same period one year earlier.
Sweeteners and starches operating profit increased $124 million to $135
million, amid continued good sweetener export demand and higher average
selling prices. The year-ago quarter’s results were negatively impacted
by higher net corn costs related to the timing effects of economic
hedges, whose mark-to-market gains were recognized earlier in the fiscal
year.
Bioproducts results in the quarter decreased $172 million to a loss of
$61 million. Significantly weaker ethanol results more than offset
improvements in other bioproducts businesses. Industry ethanol
replacement margins were negative throughout the quarter, as the
industry supply continued to exceed demand.
Agricultural Services Results Fall on Lower U.S. Exports
Agricultural Services operating profit was $123 million, down $222
million from the same period one year earlier.
Merchandising and handling earnings fell $152 million to $30 million due
to lower U.S. merchandising results and lower U.S. crop supplies, which
reduced North American export volumes. Results for the quarter also
reflected an increase in loss provisions of approximately $40 million.
Transportation results increased $5 million to $17 million.
Excluding last year’s $78 million gain related to ADM’s share of Gruma
S.A.B. de C.V.’s sale of assets, Milling and other results were steady.
Other Financial Results Slightly Up
In the fourth quarter, operating profit from ADM’s Other Financial
businesses was $16 million, up $11 million from the same period one year
earlier. The improvement was primarily a result of lower captive
insurance loss reserves, and better results at ADM Investor Services.
Current Landscape Assessment
The smaller South American spring harvest means that the U.S. is
currently the primary global supplier of soybeans and meal. U.S. corn
and soybean yields have been reduced by drought; wheat was less
affected. Generally high crop prices will encourage large planted
acreage in South America. Global protein meal demand remains good. Poor
margins have lowered U.S. ethanol industry production which is reducing
inventories. Demand for corn sweeteners remains solid, supported by
exports.
Conference Call Information
ADM will host a conference call and audio webcast Tuesday, July 31,
2012, at 8 a.m. Central Time to discuss financial results and provide a
company update. A financial summary slide presentation will be available
to download approximately 60 minutes prior to the call.
To listen to the call via the Internet or to download the slide
presentation, go to www.adm.com/webcast.
To listen by telephone, dial (888) 522-5398 in the U.S. or (706)
902-2121 if calling from outside the U.S. The access code is 95403712.
A replay of the call will be available from Aug. 1, 2012 to Aug. 6,
2012. To listen to the replay by telephone, dial (855) 859-2056 in the
U.S. or (404) 537-3406 if calling from outside the U.S. The access code
is 95403712. To listen to the replay online, visit www.adm.com/webcast.
About ADM
For more than a century, the people of Archer Daniels Midland Company
(NYSE: ADM) have transformed crops into products that serve vital needs.
Today, 30,000 ADM employees around the globe convert oilseeds, corn,
wheat and cocoa into products for food, animal feed, industrial and
energy uses. With more than 270 processing plants, 420 crop procurement
facilities, and the world’s premier crop transportation network, ADM
helps connect the harvest to the home in more than 160 countries. For
more information about ADM and its products, visit www.adm.com.
1 Non-GAAP financial measures, see pages 5 and 12 for
explanations and reconciliations
|
|
|
Segment Operating Profit and Corporate Results(1)
|
|
A non-GAAP financial measure (unaudited)
|
|
|
|
|
|
|
Quarter ended
|
|
|
Year ended
|
|
|
|
|
June 30
|
|
|
June 30
|
|
|
|
|
2012
|
|
|
2011
|
|
|
Change
|
|
|
2012
|
|
|
2011
|
|
|
Change
|
|
|
|
|
(in millions)
|
|
Oilseeds Processing Operating Profit
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Crushing and origination
|
|
|
$
|
150
|
|
|
|
$
|
226
|
|
|
|
$
|
(76
|
)
|
|
|
$
|
641
|
|
|
|
$
|
925
|
|
|
|
$
|
(284
|
)
|
|
Refining, packaging, biodiesel
and other
|
|
|
|
84
|
|
|
|
|
90
|
|
|
|
|
(6
|
)
|
|
|
|
295
|
|
|
|
|
342
|
|
|
|
|
(47
|
)
|
|
Cocoa and other
|
|
|
|
52
|
|
|
|
|
71
|
|
|
|
|
(19
|
)
|
|
|
|
183
|
|
|
|
|
240
|
|
|
|
|
(57
|
)
|
|
Asia
|
|
|
|
45
|
|
|
|
|
62
|
|
|
|
|
(17
|
)
|
|
|
|
183
|
|
|
|
|
183
|
|
|
|
|
-
|
|
|
Total Oilseeds Processing
|
|
|
$
|
331
|
|
|
|
$
|
449
|
|
|
|
$
|
(118
|
)
|
|
|
$
|
1,302
|
|
|
|
$
|
1,690
|
|
|
|
$
|
(388
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corn Processing Operating Profit
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sweeteners and starches
|
|
|
$
|
135
|
|
|
|
$
|
11
|
|
|
|
$
|
124
|
|
|
|
$
|
335
|
|
|
|
$
|
330
|
|
|
|
$
|
5
|
|
|
Bioproducts
|
|
|
|
(61
|
)
|
|
|
|
111
|
|
|
|
|
(172
|
)
|
|
|
|
(74
|
)
|
|
|
|
749
|
|
|
|
|
(823
|
)
|
|
Total Corn Processing
|
|
|
$
|
74
|
|
|
|
$
|
122
|
|
|
|
$
|
(48
|
)
|
|
|
$
|
261
|
|
|
|
$
|
1,079
|
|
|
|
$
|
(818
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Agricultural Services Operating Profit
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Merchandising and handling
|
|
|
$
|
30
|
|
|
|
$
|
182
|
|
|
|
$
|
(152
|
)
|
|
|
$
|
493
|
|
|
|
$
|
807
|
|
|
|
$
|
(314
|
)
|
|
Transportation
|
|
|
|
17
|
|
|
|
|
12
|
|
|
|
|
5
|
|
|
|
|
125
|
|
|
|
|
117
|
|
|
|
|
8
|
|
|
Milling and other
|
|
|
|
76
|
|
|
|
|
151
|
|
|
|
|
(75
|
)
|
|
|
|
329
|
|
|
|
|
399
|
|
|
|
|
(70
|
)
|
|
Total Agricultural Services
|
|
|
$
|
123
|
|
|
|
$
|
345
|
|
|
|
$
|
(222
|
)
|
|
|
$
|
947
|
|
|
|
$
|
1,323
|
|
|
|
$
|
(376
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Operating Profit
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial
|
|
|
|
16
|
|
|
|
|
5
|
|
|
|
|
11
|
|
|
|
|
15
|
|
|
|
|
39
|
|
|
|
|
(24
|
)
|
|
Total Other
|
|
|
$
|
16
|
|
|
|
$
|
5
|
|
|
|
$
|
11
|
|
|
|
$
|
15
|
|
|
|
$
|
39
|
|
|
|
$
|
(24
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment Operating Profit
|
|
|
$
|
544
|
|
|
|
$
|
921
|
|
|
|
$
|
(377
|
)
|
|
|
$
|
2,525
|
|
|
|
$
|
4,131
|
|
|
|
$
|
(1,606
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate Results
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIFO credit (charge)
|
|
|
$
|
50
|
|
|
|
$
|
52
|
|
|
|
$
|
(2
|
)
|
|
|
$
|
10
|
|
|
|
$
|
(368
|
)
|
|
|
$
|
378
|
|
|
Interest expense - net
|
|
|
|
(112
|
)
|
|
|
|
(115
|
)
|
|
|
|
3
|
|
|
|
|
(423
|
)
|
|
|
|
(445
|
)
|
|
|
|
22
|
|
|
Unallocated corporate costs
|
|
|
|
(67
|
)
|
|
|
|
(94
|
)
|
|
|
|
27
|
|
|
|
|
(360
|
)
|
|
|
|
(326
|
)
|
|
|
|
(34
|
)
|
|
Gains on interest rate swaps
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
30
|
|
|
|
|
(30
|
)
|
|
Other
|
|
|
|
1
|
|
|
|
|
-
|
|
|
|
|
1
|
|
|
|
|
13
|
|
|
|
|
(7
|
)
|
|
|
|
20
|
|
|
Total Corporate
|
|
|
$
|
(128
|
)
|
|
|
$
|
(157
|
)
|
|
|
$
|
29
|
|
|
|
$
|
(760
|
)
|
|
|
$
|
(1,116
|
)
|
|
|
$
|
356
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings Before Income Taxes
|
|
|
$
|
416
|
|
|
|
$
|
764
|
|
|
|
$
|
(348
|
)
|
|
|
$
|
1,765
|
|
|
|
$
|
3,015
|
|
|
|
$
|
(1,250
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total segment operating profit is ADM’s consolidated income from
operations before income tax that excludes certain corporate items.
Management believes that segment operating profit is a useful measure of
ADM’s performance because it provides investors information about ADM’s
business unit performance excluding certain corporate overhead costs.
Total segment operating profit is a non-GAAP financial measure and is
not intended to replace earnings before income tax, the most directly
comparable GAAP financial measure. Total segment operating profit is not
a measure of consolidated operating results under U.S. GAAP and should
not be considered as an alternative to income before income taxes or any
other measure of consolidated operating results under U.S. GAAP.
(1) Beginning fourth quarter fiscal 2012, ADM realigned segment
operating profit to reflect a change in how the company manages its
businesses. As a result, ADM now reports Cocoa processing results as
part of a new category in Oilseeds called “Cocoa and Other” and Milling
results in an Agricultural Services category called “Milling and Other”.
In addition, beginning fourth quarter fiscal 2012, the company
discontinued the allocation of working capital interest to the operating
segments. Prior periods have been restated to conform to the current
period presentation.
|
|
|
Quarterly Segment Operating Profit and Corporate Results (1)
|
|
A non-GAAP financial measure (unaudited)
|
|
|
|
|
|
|
|
|
|
Fiscal
|
|
|
|
|
|
Fiscal
|
|
|
|
|
Quarter ended
|
|
|
Year
|
|
|
Quarter ended
|
|
|
Year
|
|
|
|
|
Sept'11
|
|
|
Dec'11
|
|
|
Mar'12
|
|
|
June'12
|
|
|
2012
|
|
|
Sept'10
|
|
|
Dec'10
|
|
|
Mar'11
|
|
|
June'11
|
|
|
2011
|
|
|
|
|
(in millions)
|
|
Oilseeds Processing Operating Profit
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Crushing and origination
|
|
|
$
|
106
|
|
|
|
$
|
121
|
|
|
|
$
|
264
|
|
|
|
$
|
150
|
|
|
|
$
|
641
|
|
|
|
$
|
170
|
|
|
|
$
|
127
|
|
|
|
$
|
402
|
|
|
|
$
|
226
|
|
|
|
$
|
925
|
|
|
Refining, packaging, biodiesel, and other
|
|
|
|
55
|
|
|
|
|
77
|
|
|
|
|
79
|
|
|
|
|
84
|
|
|
|
|
295
|
|
|
|
|
78
|
|
|
|
|
81
|
|
|
|
|
93
|
|
|
|
|
90
|
|
|
|
|
342
|
|
|
Cocoa and other
|
|
|
|
2
|
|
|
|
|
(30
|
)
|
|
|
|
159
|
|
|
|
|
52
|
|
|
|
|
183
|
|
|
|
|
(32
|
)
|
|
|
|
156
|
|
|
|
|
45
|
|
|
|
|
71
|
|
|
|
|
240
|
|
|
Asia
|
|
|
|
57
|
|
|
|
|
41
|
|
|
|
|
40
|
|
|
|
|
45
|
|
|
|
|
183
|
|
|
|
|
57
|
|
|
|
|
46
|
|
|
|
|
18
|
|
|
|
|
62
|
|
|
|
|
183
|
|
|
Total Oilseeds Processing
|
|
|
$
|
220
|
|
|
|
$
|
209
|
|
|
|
$
|
542
|
|
|
|
$
|
331
|
|
|
|
$
|
1,302
|
|
|
|
$
|
273
|
|
|
|
$
|
410
|
|
|
|
$
|
558
|
|
|
|
$
|
449
|
|
|
|
$
|
1,690
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corn Processing Operating Profit
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sweeteners and starches
|
|
|
$
|
30
|
|
|
|
$
|
75
|
|
|
|
$
|
95
|
|
|
|
$
|
135
|
|
|
|
$
|
335
|
|
|
|
$
|
148
|
|
|
|
$
|
122
|
|
|
|
$
|
49
|
|
|
|
$
|
11
|
|
|
|
$
|
330
|
|
|
Bioproducts
|
|
|
|
153
|
|
|
|
|
(204
|
)
|
|
|
|
38
|
|
|
|
|
(61
|
)
|
|
|
|
(74
|
)
|
|
|
|
197
|
|
|
|
|
281
|
|
|
|
|
160
|
|
|
|
|
111
|
|
|
|
|
749
|
|
|
Total Corn Processing
|
|
|
$
|
183
|
|
|
|
$
|
(129
|
)
|
|
|
$
|
133
|
|
|
|
$
|
74
|
|
|
|
$
|
261
|
|
|
|
$
|
345
|
|
|
|
$
|
403
|
|
|
|
$
|
209
|
|
|
|
$
|
122
|
|
|
|
$
|
1,079
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Agricultural Services Operating Profit
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Merchandising and handling
|
|
|
$
|
209
|
|
|
|
$
|
106
|
|
|
|
$
|
148
|
|
|
|
$
|
30
|
|
|
|
$
|
493
|
|
|
|
$
|
102
|
|
|
|
$
|
366
|
|
|
|
$
|
157
|
|
|
|
$
|
182
|
|
|
|
$
|
807
|
|
|
Transportation
|
|
|
|
28
|
|
|
|
|
53
|
|
|
|
|
27
|
|
|
|
|
17
|
|
|
|
|
125
|
|
|
|
|
33
|
|
|
|
|
53
|
|
|
|
|
19
|
|
|
|
|
12
|
|
|
|
|
117
|
|
|
Milling and other
|
|
|
|
86
|
|
|
|
|
81
|
|
|
|
|
86
|
|
|
|
|
76
|
|
|
|
|
329
|
|
|
|
|
78
|
|
|
|
|
96
|
|
|
|
|
74
|
|
|
|
|
151
|
|
|
|
|
399
|
|
|
Total Agricultural Services
|
|
|
$
|
323
|
|
|
|
$
|
240
|
|
|
|
$
|
261
|
|
|
|
$
|
123
|
|
|
|
$
|
947
|
|
|
|
$
|
213
|
|
|
|
$
|
515
|
|
|
|
$
|
250
|
|
|
|
$
|
345
|
|
|
|
$
|
1,323
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Operating Profit
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial
|
|
|
$
|
(5
|
)
|
|
|
$
|
22
|
|
|
|
$
|
(18
|
)
|
|
|
$
|
16
|
|
|
|
$
|
15
|
|
|
|
$
|
(42
|
)
|
|
|
$
|
52
|
|
|
|
$
|
24
|
|
|
|
$
|
5
|
|
|
|
$
|
39
|
|
|
Total Other
|
|
|
$
|
(5
|
)
|
|
|
$
|
22
|
|
|
|
$
|
(18
|
)
|
|
|
$
|
16
|
|
|
|
$
|
15
|
|
|
|
$
|
(42
|
)
|
|
|
$
|
52
|
|
|
|
$
|
24
|
|
|
|
$
|
5
|
|
|
|
$
|
39
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment Operating Profit
|
|
|
$
|
721
|
|
|
|
$
|
342
|
|
|
|
$
|
918
|
|
|
|
$
|
544
|
|
|
|
$
|
2,525
|
|
|
|
$
|
789
|
|
|
|
$
|
1,380
|
|
|
|
$
|
1,041
|
|
|
|
$
|
921
|
|
|
|
$
|
4,131
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate Results
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIFO credit (charge)
|
|
|
$
|
126
|
|
|
|
$
|
(59
|
)
|
|
|
$
|
(107
|
)
|
|
|
$
|
50
|
|
|
|
$
|
10
|
|
|
|
$
|
(123
|
)
|
|
|
$
|
(254
|
)
|
|
|
$
|
(43
|
)
|
|
|
$
|
52
|
|
|
|
$
|
(368
|
)
|
|
Interest expense - net
|
|
|
|
(98
|
)
|
|
|
|
(99
|
)
|
|
|
|
(114
|
)
|
|
|
|
(112
|
)
|
|
|
|
(423
|
)
|
|
|
|
(113
|
)
|
|
|
|
(101
|
)
|
|
|
|
(116
|
)
|
|
|
|
(115
|
)
|
|
|
|
(445
|
)
|
|
Unallocated corporate costs
|
|
|
|
(84
|
)
|
|
|
|
(71
|
)
|
|
|
|
(138
|
)
|
|
|
|
(67
|
)
|
|
|
|
(360
|
)
|
|
|
|
(73
|
)
|
|
|
|
(66
|
)
|
|
|
|
(93
|
)
|
|
|
|
(94
|
)
|
|
|
|
(326
|
)
|
|
Gains (losses) on interest rate swaps
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
(31
|
)
|
|
|
|
55
|
|
|
|
|
6
|
|
|
|
|
-
|
|
|
|
|
30
|
|
|
Debt buyback/exchange
|
|
|
|
(4
|
)
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
(4
|
)
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
(8
|
)
|
|
|
|
(8
|
)
|
|
Other
|
|
|
|
(1
|
)
|
|
|
|
8
|
|
|
|
|
9
|
|
|
|
|
1
|
|
|
|
|
17
|
|
|
|
|
13
|
|
|
|
|
(16
|
)
|
|
|
|
(4
|
)
|
|
|
|
8
|
|
|
|
|
1
|
|
|
Total Corporate
|
|
|
$
|
(61
|
)
|
|
|
$
|
(221
|
)
|
|
|
$
|
(350
|
)
|
|
|
$
|
(128
|
)
|
|
|
$
|
(760
|
)
|
|
|
$
|
(327
|
)
|
|
|
$
|
(382
|
)
|
|
|
$
|
(250
|
)
|
|
|
$
|
(157
|
)
|
|
|
$
|
(1,116
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings Before Income Taxes
|
|
|
$
|
660
|
|
|
|
$
|
121
|
|
|
|
$
|
568
|
|
|
|
$
|
416
|
|
|
|
$
|
1,765
|
|
|
|
$
|
462
|
|
|
|
$
|
998
|
|
|
|
$
|
791
|
|
|
|
$
|
764
|
|
|
|
$
|
3,015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Beginning fourth quarter fiscal 2012, ADM realigned segment
operating profit to reflect a change in how the company manages its
businesses. As a result, ADM now reports Cocoa processing results as
part of a new category in Oilseeds called “Cocoa and Other” and Milling
results in an Agricultural Services category called “Milling and Other”.
In addition, beginning fourth quarter fiscal 2012, the company
discontinued the allocation of working capital interest to the operating
segments. Prior periods have been restated to conform to the current
period presentation.
|
|
|
Consolidated Statements of Earnings
|
|
(unaudited)
|
|
|
|
|
|
|
Quarter ended
|
|
|
Year ended
|
|
|
|
|
June 30
|
|
|
June 30
|
|
|
|
|
2012
|
|
|
2011
|
|
|
2012
|
|
|
2011
|
|
|
|
|
(in millions, except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales and other operating income
|
|
|
$
|
22,675
|
|
|
|
$
|
22,870
|
|
|
|
$
|
89,038
|
|
|
|
$
|
80,676
|
|
|
Cost of products sold
|
|
|
|
21,862
|
|
|
|
|
21,772
|
|
|
|
|
85,370
|
|
|
|
|
76,376
|
|
|
Gross profit
|
|
|
|
813
|
|
|
|
|
1,098
|
|
|
|
|
3,668
|
|
|
|
|
4,300
|
|
|
Selling, general and administrative expenses
|
|
|
|
(394
|
)
|
|
|
|
(423
|
)
|
|
|
|
(1,626
|
)
|
|
|
|
(1,611
|
)
|
|
Equity in earnings of unconsolidated
affiliates
|
|
|
|
106
|
|
|
|
|
208
|
|
|
|
|
472
|
|
|
|
|
542
|
|
|
Investment income
|
|
|
|
24
|
|
|
|
|
39
|
|
|
|
|
112
|
|
|
|
|
136
|
|
|
Interest expense
|
|
|
|
(116
|
)
|
|
|
|
(129
|
)
|
|
|
|
(441
|
)
|
|
|
|
(482
|
)
|
|
Asset impairment, exit and restructuring
costs
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
(437
|
)
|
|
|
|
-
|
|
|
Other income (expense) – net
|
|
|
|
(17
|
)
|
|
|
|
(29
|
)
|
|
|
|
17
|
|
|
|
|
130
|
|
|
Earnings before income taxes
|
|
|
|
416
|
|
|
|
|
764
|
|
|
|
|
1,765
|
|
|
|
|
3,015
|
|
|
Income taxes
|
|
|
|
(123
|
)
|
|
|
|
(385
|
)
|
|
|
|
(523
|
)
|
|
|
|
(997
|
)
|
|
Net earnings including noncontrolling interests
|
|
|
|
293
|
|
|
|
|
379
|
|
|
|
|
1,242
|
|
|
|
|
2,018
|
|
|
Less: Net earnings (losses) attributable to noncontrolling interests
|
|
|
|
9
|
|
|
|
|
(2
|
)
|
|
|
|
19
|
|
|
|
|
(18
|
)
|
|
Net earnings attributable to ADM
|
|
|
$
|
284
|
|
|
|
$
|
381
|
|
|
|
$
|
1,223
|
|
|
|
$
|
2,036
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per common share
|
|
|
$
|
0.43
|
|
|
|
$
|
0.58
|
|
|
|
$
|
1.84
|
|
|
|
$
|
3.13
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average number of shares outstanding
|
|
|
|
661
|
|
|
|
|
652
|
|
|
|
|
666
|
|
|
|
|
654
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income (expense) - net consists of:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net gain on marketable securities
transactions
|
|
|
$
|
1
|
|
|
|
$
|
9
|
|
|
|
$
|
25
|
|
|
|
$
|
12
|
|
|
Gain on Golden Peanut revaluation
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
71
|
|
|
Gains on interest rate swaps
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
30
|
|
|
Debt buyback/exchange costs
|
|
|
|
-
|
|
|
|
|
(15
|
)
|
|
|
|
(12
|
)
|
|
|
|
(15
|
)
|
|
Other – net
|
|
|
|
(18
|
)
|
|
|
|
(23
|
)
|
|
|
|
4
|
|
|
|
|
32
|
|
|
|
|
|
$
|
(17
|
)
|
|
|
$
|
(29
|
)
|
|
|
$
|
17
|
|
|
|
$
|
130
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Summary of Financial Condition
|
|
(unaudited)
|
|
|
|
|
|
|
June 30,
|
|
|
June 30,
|
|
|
|
|
2012
|
|
|
2011
|
|
|
|
|
(in millions)
|
|
NET INVESTMENT IN
|
|
|
|
|
|
|
|
|
|
Working capital
|
|
|
$
|
16,113
|
|
|
$
|
16,339
|
|
Property, plant, and equipment
|
|
|
|
9,812
|
|
|
|
9,500
|
|
Investments in and advances to affiliates
|
|
|
|
3,388
|
|
|
|
3,240
|
|
Long-term marketable securities
|
|
|
|
262
|
|
|
|
666
|
|
Other non-current assets
|
|
|
|
1,137
|
|
|
|
1,283
|
|
|
|
|
$
|
30,712
|
|
|
$
|
31,028
|
|
|
|
|
|
|
|
|
|
|
|
FINANCED BY
|
|
|
|
|
|
|
|
|
|
Short-term debt
|
|
|
$
|
2,108
|
|
|
$
|
1,875
|
|
Long-term debt, including current maturities
|
|
|
|
8,212
|
|
|
|
8,444
|
|
Deferred liabilities
|
|
|
|
2,223
|
|
|
|
1,871
|
|
Shareholders’ equity
|
|
|
|
18,169
|
|
|
|
18,838
|
|
|
|
|
$
|
30,712
|
|
|
$
|
31,028
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Summary of Cash Flows
|
|
(unaudited)
|
|
|
|
|
|
Year Ended
|
|
|
|
|
|
June 30
|
|
|
|
|
|
2012
|
|
|
2011
|
|
|
|
|
|
(in millions)
|
|
Operating Activities
|
|
|
|
|
|
|
|
|
|
Net earnings
|
|
|
$
|
1,242
|
|
|
|
$
|
2,018
|
|
|
Depreciation and amortization
|
|
|
|
848
|
|
|
|
|
877
|
|
|
Asset impairment charges
|
|
|
|
391
|
|
|
|
|
2
|
|
|
Other – net
|
|
|
|
98
|
|
|
|
|
(5
|
)
|
|
Changes in operating assets and liabilities
|
|
|
|
340
|
|
|
|
|
(5,232
|
)
|
|
Total Operating Activities
|
|
|
|
2,919
|
|
|
|
|
(2,340
|
)
|
|
Investing Activities
|
|
|
|
|
|
|
|
|
|
Purchases of property, plant and equipment
|
|
|
|
(1,477
|
)
|
|
|
|
(1,247
|
)
|
|
Net assets of businesses acquired
|
|
|
|
(241
|
)
|
|
|
|
(218
|
)
|
|
Marketable securities – net
|
|
|
|
648
|
|
|
|
|
(285
|
)
|
|
Cash held in a deconsolidated entity
|
|
|
|
(130
|
)
|
|
|
|
-
|
|
|
Other investing activities
|
|
|
|
78
|
|
|
|
|
75
|
|
|
Total Investing Activities
|
|
|
|
(1,122
|
)
|
|
|
|
(1,675
|
)
|
|
Financing Activities
|
|
|
|
|
|
|
|
|
|
Long-term debt borrowings
|
|
|
|
97
|
|
|
|
|
1,564
|
|
|
Long-term debt payments
|
|
|
|
(358
|
)
|
|
|
|
(417
|
)
|
|
Net borrowings under lines of credit
|
|
|
|
197
|
|
|
|
|
1,381
|
|
|
Debt repayment premium and costs
|
|
|
|
(32
|
)
|
|
|
|
(21
|
)
|
|
Shares issued related to equity unit conversion
|
|
|
|
-
|
|
|
|
|
1,750
|
|
|
Purchases of treasury stock
|
|
|
|
(527
|
)
|
|
|
|
(301
|
)
|
|
Cash dividends
|
|
|
|
(455
|
)
|
|
|
|
(395
|
)
|
|
Other
|
|
|
|
(43
|
)
|
|
|
|
23
|
|
|
Total Financing Activities
|
|
|
|
(1,121
|
)
|
|
|
|
3,584
|
|
|
Increase (decrease) in cash and cash equivalents
|
|
|
|
676
|
|
|
|
|
(431
|
)
|
|
Cash and cash equivalents - beginning of period
|
|
|
|
615
|
|
|
|
|
1,046
|
|
|
Cash and cash equivalents - end of period
|
|
|
$
|
1,291
|
|
|
|
$
|
615
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment Operating Analysis
|
|
(unaudited)
|
|
|
|
|
|
|
Quarter Ended
|
|
|
Year Ended
|
|
|
|
|
June 30
|
|
|
June 30
|
|
|
|
|
2012
|
|
|
2011
|
|
|
2012
|
|
|
2011
|
|
|
|
|
(‘000s of metric tons)
|
|
Processed volumes
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Oilseeds
|
|
|
|
7,793
|
|
|
|
7,038
|
|
|
|
31,161
|
|
|
29,630
|
|
Corn
|
|
|
|
6,036
|
|
|
|
6,039
|
|
|
|
24,618
|
|
|
23,412
|
|
Milling and Cocoa
|
|
|
|
1,680
|
|
|
|
1,725
|
|
|
|
7,156
|
|
|
7,179
|
|
Total processed volumes
|
|
|
|
15,509
|
|
|
|
14,802
|
|
|
|
62,935
|
|
|
60,221
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended
|
|
|
Year Ended
|
|
|
|
|
June 30
|
|
|
June 30
|
|
|
|
|
2012
|
|
|
2011
|
|
|
2012
|
|
|
2011
|
|
|
|
|
(In millions)
|
|
Net sales and other operating income(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Oilseeds Processing
|
|
|
$
|
9,663
|
|
|
$
|
9,259
|
|
|
$
|
34,715
|
|
|
$
|
29,908
|
|
Corn Processing
|
|
|
|
2,828
|
|
|
|
2,841
|
|
|
|
12,114
|
|
|
|
9,908
|
|
Agricultural Services
|
|
|
|
10,147
|
|
|
|
10,743
|
|
|
|
42,082
|
|
|
|
40,750
|
|
Other
|
|
|
|
37
|
|
|
|
27
|
|
|
|
127
|
|
|
|
110
|
|
Total net sales and other
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
operating income
|
|
|
$
|
22,675
|
|
|
$
|
22,870
|
|
|
$
|
89,038
|
|
|
$
|
80,676
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Prior periods have been restated to conform to the current period
presentation.
|
|
|
Segment Operating Analysis
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
Fiscal
|
|
|
|
|
Quarter ended
|
|
|
Year
|
|
|
|
|
Sept'11
|
|
|
Dec'11
|
|
|
Mar'12
|
|
|
June'12
|
|
|
2012
|
|
|
|
|
(In '000 metric tons)
|
|
Processed volumes
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Oilseeds
|
|
|
|
7,018
|
|
|
|
8,191
|
|
|
|
8,159
|
|
|
|
7,793
|
|
|
|
31,161
|
|
Corn
|
|
|
|
6,111
|
|
|
|
6,297
|
|
|
|
6,174
|
|
|
|
6,036
|
|
|
|
24,618
|
|
Milling and Cocoa
|
|
|
|
1,881
|
|
|
|
1,855
|
|
|
|
1,740
|
|
|
|
1,680
|
|
|
|
7,156
|
|
Total processed volumes
|
|
|
|
15,010
|
|
|
|
16,343
|
|
|
|
16,073
|
|
|
|
15,509
|
|
|
|
62,935
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal
|
|
|
|
|
Quarter ended
|
|
|
Year
|
|
|
|
|
Sept'10
|
|
|
Dec'10
|
|
|
Mar'11
|
|
|
June'11
|
|
|
2011
|
|
|
|
|
(In '000 metric tons)
|
|
Processed volumes
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Oilseeds
|
|
|
|
7,075
|
|
|
|
7,834
|
|
|
|
7,683
|
|
|
|
7,038
|
|
|
|
29,630
|
|
Corn
|
|
|
|
5,834
|
|
|
|
5,908
|
|
|
|
5,631
|
|
|
|
6,039
|
|
|
|
23,412
|
|
Milling and Cocoa
|
|
|
|
1,885
|
|
|
|
1,819
|
|
|
|
1,750
|
|
|
|
1,725
|
|
|
|
7,179
|
|
Total processed volumes
|
|
|
|
14,794
|
|
|
|
15,561
|
|
|
|
15,064
|
|
|
|
14,802
|
|
|
|
60,221
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal
|
|
|
|
|
Quarter ended
|
|
|
Year
|
|
|
|
|
Sept'11
|
|
|
Dec'11
|
|
|
Mar'12
|
|
|
June'12
|
|
|
2012
|
|
|
|
|
(In millions)
|
|
Net sales and other operating income(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Oilseeds Processing
|
|
|
$
|
9,071
|
|
|
$
|
8,266
|
|
|
$
|
7,715
|
|
|
$
|
9,663
|
|
|
$
|
34,715
|
|
Corn Processing
|
|
|
|
3,293
|
|
|
|
3,158
|
|
|
|
2,835
|
|
|
|
2,828
|
|
|
|
12,114
|
|
Agricultural Services
|
|
|
|
9,510
|
|
|
|
11,854
|
|
|
|
10,571
|
|
|
|
10,147
|
|
|
|
42,082
|
|
Other
|
|
|
|
28
|
|
|
|
28
|
|
|
|
34
|
|
|
|
37
|
|
|
|
127
|
|
Total net sales and other operating income
|
|
|
$
|
21,902
|
|
|
$
|
23,306
|
|
|
$
|
21,155
|
|
|
$
|
22,675
|
|
|
$
|
89,038
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal
|
|
|
|
|
Quarter ended
|
|
|
Year
|
|
|
|
|
Sept'10
|
|
|
Dec'10
|
|
|
Mar'11
|
|
|
June'11
|
|
|
2011
|
|
|
|
|
(In millions)
|
|
Net sales and other operating income(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Oilseeds Processing
|
|
|
$
|
7,056
|
|
|
$
|
6,608
|
|
|
$
|
6,985
|
|
|
$
|
9,259
|
|
|
$
|
29,908
|
|
Corn Processing
|
|
|
|
2,155
|
|
|
|
2,449
|
|
|
|
2,463
|
|
|
|
2,841
|
|
|
|
9,908
|
|
Agricultural Services
|
|
|
|
7,561
|
|
|
|
11,845
|
|
|
|
10,601
|
|
|
|
10,743
|
|
|
|
40,750
|
|
Other
|
|
|
|
27
|
|
|
|
28
|
|
|
|
28
|
|
|
|
27
|
|
|
|
110
|
|
Total net sales and other operating income
|
|
|
$
|
16,799
|
|
|
$
|
20,930
|
|
|
$
|
20,077
|
|
|
$
|
22,870
|
|
|
$
|
80,676
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Prior periods have been restated to conform to the current period
presentation.
|
|
|
Adjusted Earnings Per Share
|
|
A non-GAAP financial measure
|
|
(unaudited)
|
|
|
|
|
|
|
Quarter Ended
|
|
|
Year Ended
|
|
|
|
|
June 30
|
|
|
June 30
|
|
|
|
|
2012
|
|
|
2011
|
|
|
2012
|
|
|
2011
|
|
Reported Earnings Per Share (fully-diluted)
|
|
|
$
|
0.43
|
|
|
|
$
|
0.58
|
|
|
|
$
|
1.84
|
|
|
|
$
|
3.13
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIFO charge/(credit) (a)
|
|
|
|
(0.05
|
)
|
|
|
|
(0.05
|
)
|
|
|
|
(0.01
|
)
|
|
|
|
0.35
|
|
|
Asset impairment, exit and
restructuring charges (b)
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
0.41
|
|
|
|
|
-
|
|
|
Debt buyback/exchange costs (c)
|
|
|
|
-
|
|
|
|
|
0.01
|
|
|
|
|
0.01
|
|
|
|
|
0.01
|
|
|
Gain on Golden Peanut revaluation (d)
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
(0.07
|
)
|
|
Gain on Gruma assets sale (e)
|
|
|
|
-
|
|
|
|
|
(0.07
|
)
|
|
|
|
-
|
|
|
|
|
(0.07
|
)
|
|
Gain on interest rate swaps (f)
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
(0.03
|
)
|
|
Start-up costs (g)
|
|
|
|
-
|
|
|
|
|
0.02
|
|
|
|
|
-
|
|
|
|
|
0.09
|
|
|
Adjust quarterly effective tax rate to
fiscal year average (h)
|
|
|
|
-
|
|
|
|
|
0.20
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
Early debt remarketing dilution
impact (i)
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
0.04
|
|
|
Adjusted Earnings Per Share (non-GAAP)
|
|
|
$
|
0.38
|
|
|
|
$
|
0.69
|
|
|
|
$
|
2.25
|
|
|
|
$
|
3.45
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) The Company’s pretax changes in its LIFO reserves during the period,
tax effected using the Company’s U.S. effective income tax rate.
(b)
The exit costs and asset impairment charges related primarily to the PHA
business and global workforce reduction program, tax effected using the
applicable U.S., European and South American tax rates.
(c) The
pretax costs incurred to extinguish or modify the Company’s outstanding
debt prior to maturity, tax effected using the Company’s U.S effective
income tax rate.
(d) The gain on the revaluation of the Company’s
equity interest in Golden Peanut as a result of the acquisition of the
remaining 50% interest, tax effected at the Company’s U.S. effective
income tax rate.
(e) The Company’s share of the gain related to the
sale of Gruma’s assets, tax effected at the company’s U.S. effective
income tax rate.
(f) The gains on changes in fair value of certain
financial instruments that were held as de-designated accounting hedges
for long-term debt that was re-marketed in fiscal 2011, tax effected at
the Company’s U.S. effective income tax rate.
(g) The costs
incurred related to the Company’s new bioproducts plants included in
Corn Processing, tax effected using the Company’s U.S. effective income
tax rate.
(h) The impact to fourth-quarter fiscal 2011 EPS if the
fiscal year 2011 final effective income tax rate of 33% were used.
(i)
The impact of applying the if-converted method of calculating diluted
EPS to the 44 million shares issued in Q4 fiscal 2011. The if-converted
method assumed that the shares were outstanding at the beginning of the
third quarter of fiscal 2011.
Adjusted EPS is ADM’s fully diluted EPS after removal of the effect on
Reported EPS of certain specified items as more fully described above.
Management believes that Adjusted EPS is a useful measure of ADM’s
performance because it provides investors additional information about
ADM’s operations allowing better evaluation of ongoing business
performance. Adjusted EPS is a non-GAAP financial measure and is not
intended to replace or be an alternative to EPS, the most directly
comparable GAAP financial measure, or any other measures of operating
results under GAAP. Earnings amounts in the tables above have been
divided by the company’s diluted shares outstanding for each respective
quarter in order to arrive at an adjusted EPS amount for each specified
item.
Archer Daniels Midland Company
Media Relations Contact
David Weintraub
217-424-5413
or
Investor Relations Contact
Ruth Ann Wisener
217-451-8286