Adjusted EPS of $0.60, up 18 percent from year-ago quarter
Good operating results despite challenging conditions caused by U.S. drought
DECATUR, Ill.--(BUSINESS WIRE)--Archer Daniels Midland Company (NYSE: ADM) today reported financial
results for the quarter ended Dec. 31, 2012. The company reported net
earnings for the quarter of $510 million, or $0.77 per share, up from
$0.12 per share in the same period one year earlier. Adjusted earnings
per share1 were $0.60, up from $0.51 in the same period last
year. Segment operating profit1 was $808 million.
“The ADM team managed well despite challenges from the U.S. drought and
from persistent, negative margins in the ethanol industry,” said ADM
Chairman and CEO Patricia Woertz. “Our results in Oilseeds and
Agricultural Services demonstrated the ability of our people to use our
global asset network to prepare for and manage in a range of market
conditions.
“In North America, we fully utilized our oilseeds crushing capacity to
meet strong global demand, and we adjusted our transportation and
origination network to move goods efficiently despite constrained river
traffic and a smaller corn crop. In South America, we leveraged our
origination, transportation and export facilities to move the record
corn crop to world markets. And, in Europe, we made some operational
changes, and the market responded to reduced imports.
“During our abbreviated fiscal year, we drove meaningful improvements in
capital, costs and cash to enhance our future competitiveness. We
continued taking action to improve underperforming businesses. As part
of our ongoing portfolio management, we sold $570 million of non-core
investments. And, through a companywide focus, we unlocked more than $1
billion in working cash.”
Second Quarter 2012.5 Highlights
-
Adjusted EPS of $0.60 excludes approximately $113 million in pretax
LIFO gains ($0.11 per share) and other items that net to about $0.06
per share.
-
Oilseeds Processing profit increased $202 million, with year-over-year
improvements in crushing and origination results in all regions.
-
Excluding last year’s $339 million asset impairment charge, Corn
Processing profit decreased $207 million, due to ongoing weakness in
industry ethanol margins.
-
Agricultural Services profit rose $77 million, as solid U.S. soybean
exports, improved international merchandising and a gain on ADM’s
investment in GrainCorp benefitted results.
-
Net debt balances declined to $7.2 billion, the lowest level since
June 2010, as the benefits of the company wide focus on unlocking cash
began to be realized.
Adjusted EPS of 60 Cents, up 9 Cents
Adjusted EPS increased primarily due to higher segment operating profit.
This fiscal year’s effective tax rate of 30 percent was in line with the
same six-month period last year.
Oilseeds Earnings Improve Across All Three Regions
Oilseeds operating profit in the second quarter was $411 million, up
$202 million from the same period one year earlier. Results included
unfavorable mark-to-market timing effects of about $50 million (about
$0.05 per share), compared to an unfavorable impact of about $110
million in the year-ago quarter.
Crushing and origination operating profit was $261 million, up $140
million from the year-ago quarter on strong improvements in all three
geographies. ADM’s U.S. soybean operations ran at record capacity during
the quarter and delivered very strong results amid good domestic and
export meal demand. In South America, ADM was well prepared to move the
record corn harvest. And in Europe, operational changes and reduced
imports from South America drove improved results.
Refining, packaging, biodiesel and other generated a profit of $50
million for the quarter, down $27 million, due to weakness in biodiesel
margins in the U.S. and Europe.
Cocoa and other results increased $66 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 up $23 million from the
prior year’s second 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 of $3 million represented a decline of
$207 million from the same period one year earlier, when excluding the
year-ago quarter’s $339 million asset impairment.
Sweeteners and starches operating profit increased $22 million to $97
million, as tight sweetener industry capacity and higher corn costs
supported higher year-over-year selling prices.
Excluding last year’s $339 million asset impairment charge, bioproducts
results decreased $229 million to a loss of $94 million. Weak domestic
gasoline demand and unfavorable global ethanol trade flows resulted in
continued excess industry capacity, keeping ethanol margins negative.
Agricultural Services Solid Despite Impact of U.S. Drought
Agricultural Services operating profit was $317 million, up $77 million
from the same period one year earlier. Results included a $62 million
gain on ADM’s investment in GrainCorp.
Excluding the gain on GrainCorp, merchandising and handling earnings
rose $23 million to $129 million, as solid U.S. soybean exports and
improved international merchandising results more than offset lower U.S.
corn origination and export volumes.
Transportation results were solid, despite challenges from low water on
the Mississippi River. Results decreased $5 million to $48 million as
increased barge operating expenses were partially offset by higher
freight rates.
Milling and other results remained steady, as the milling business
continued to perform well.
Other Financial Results Improve
Operating profit from ADM’s Other Financial businesses was $77 million,
up $55 million, with asset disposal gains and favorable captive
insurance loss reserve adjustments.
Conference Call Information
ADM will host a conference call and audio webcast Tuesday, Feb. 5, 2013,
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 85998249.
Replay of the call will be available from Feb. 6, 2013 to Feb. 12, 2013.
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
85998249. The replay will also be available online for an extended
period of time at 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 265 processing plants, 460 crop procurement
facilities, and the world’s premier crop transportation network, ADM
helps connect the harvest to the home in more than 140 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
Financial Tables Follow
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment Operating Profit and Corporate Results
|
|
|
|
|
|
|
A non-GAAP financial measure (unaudited)
|
|
|
|
|
|
|
|
|
|
Quarter ended
December 31
|
|
|
|
|
Four quarters ended
December 31
|
|
|
|
|
|
|
2012
|
|
2011
|
|
Change
|
|
|
2012
|
|
2011
|
|
Change
|
|
|
|
|
(in millions)
|
|
Oilseeds Processing Operating Profit
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Crushing and origination
|
|
|
$
|
261
|
|
|
$
|
121
|
|
|
$
|
140
|
|
|
|
$
|
931
|
|
|
$
|
855
|
|
|
$
|
76
|
|
|
Refining, packaging, biodiesel and other
|
|
|
|
50
|
|
|
|
77
|
|
|
|
(27
|
)
|
|
|
|
241
|
|
|
|
315
|
|
|
|
(74
|
)
|
|
Cocoa and other
|
|
|
|
36
|
|
|
|
(30
|
)
|
|
|
66
|
|
|
|
|
276
|
|
|
|
88
|
|
|
|
188
|
|
|
Asia
|
|
|
|
64
|
|
|
|
41
|
|
|
|
23
|
|
|
|
|
172
|
|
|
|
178
|
|
|
|
(6
|
)
|
|
Total Oilseeds Processing
|
|
|
$
|
411
|
|
|
$
|
209
|
|
|
$
|
202
|
|
|
|
$
|
1,620
|
|
|
$
|
1,436
|
|
|
$
|
184
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corn Processing Operating Profit
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sweeteners and starches
|
|
|
$
|
97
|
|
|
$
|
75
|
|
|
$
|
22
|
|
|
|
$
|
421
|
|
|
$
|
165
|
|
|
$
|
256
|
|
|
Bioproducts (excluding charges)
|
|
|
|
(94
|
)
|
|
|
135
|
|
|
|
(229
|
)
|
|
|
|
(133
|
)
|
|
|
559
|
|
|
|
(692
|
)
|
|
Restructuring and Exit Costs
|
|
|
|
-
|
|
|
|
(339
|
)
|
|
|
339
|
|
|
|
|
(10
|
)
|
|
|
(339
|
)
|
|
|
329
|
|
|
Total Corn Processing
|
|
|
$
|
3
|
|
|
$
|
(129
|
)
|
|
$
|
132
|
|
|
|
$
|
278
|
|
|
$
|
385
|
|
|
$
|
(107
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Agricultural Services Operating Profit
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Merchandising and handling (excluding item)
|
|
|
$
|
129
|
|
|
$
|
106
|
|
|
$
|
23
|
|
|
|
$
|
415
|
|
|
$
|
654
|
|
|
$
|
(239
|
)
|
|
Gain on interest in GrainCorp
|
|
|
|
62
|
|
|
|
-
|
|
|
|
62
|
|
|
|
|
62
|
|
|
|
-
|
|
|
|
62
|
|
|
Transportation
|
|
|
|
48
|
|
|
|
53
|
|
|
|
(5
|
)
|
|
|
|
111
|
|
|
|
112
|
|
|
|
(1
|
)
|
|
Milling and other (excluding items)
|
|
|
|
78
|
|
|
|
81
|
|
|
|
(3
|
)
|
|
|
|
337
|
|
|
|
314
|
|
|
|
23
|
|
|
Gain on sale of Gruma assets
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
78
|
|
|
|
(78
|
)
|
|
Asset impairment charge
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
(146
|
)
|
|
|
-
|
|
|
|
(146
|
)
|
|
Total Agricultural Services
|
|
|
$
|
317
|
|
|
$
|
240
|
|
|
$
|
77
|
|
|
|
$
|
779
|
|
|
$
|
1,158
|
|
|
$
|
(379
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Operating Profit
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial
|
|
|
$
|
77
|
|
|
$
|
22
|
|
|
$
|
55
|
|
|
|
$
|
91
|
|
|
$
|
46
|
|
|
$
|
45
|
|
|
Total Other
|
|
|
$
|
77
|
|
|
$
|
22
|
|
|
$
|
55
|
|
|
|
$
|
91
|
|
|
$
|
46
|
|
|
$
|
45
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment Operating Profit
|
|
|
$
|
808
|
|
|
$
|
342
|
|
|
$
|
466
|
|
|
|
$
|
2,768
|
|
|
$
|
3,025
|
|
|
$
|
(257
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate Results
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIFO credit (charge)
|
|
|
$
|
113
|
|
|
$
|
(59
|
)
|
|
$
|
172
|
|
|
|
$
|
3
|
|
|
$
|
76
|
|
|
$
|
(73
|
)
|
|
Interest expense - net
|
|
|
|
(112
|
)
|
|
|
(99
|
)
|
|
|
(13
|
)
|
|
|
|
(445
|
)
|
|
|
(428
|
)
|
|
|
(17
|
)
|
|
Unallocated corporate costs
|
|
|
|
(70
|
)
|
|
|
(71
|
)
|
|
|
1
|
|
|
|
|
(274
|
)
|
|
|
(342
|
)
|
|
|
68
|
|
|
Employee-related exit costs
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
(71
|
)
|
|
|
-
|
|
|
|
(71
|
)
|
|
Gains on interest rate swaps
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
6
|
|
|
|
(6
|
)
|
|
Debt buyback/exchange
|
|
|
|
(5
|
)
|
|
|
-
|
|
|
|
(5
|
)
|
|
|
|
(5
|
)
|
|
|
(12
|
)
|
|
|
7
|
|
|
Pension settlements
|
|
|
|
(68
|
)
|
|
|
-
|
|
|
|
(68
|
)
|
|
|
|
(68
|
)
|
|
|
-
|
|
|
|
(68
|
)
|
|
Other
|
|
|
|
36
|
|
|
|
8
|
|
|
|
28
|
|
|
|
|
73
|
|
|
|
11
|
|
|
|
62
|
|
|
Total Corporate
|
|
|
$
|
(106
|
)
|
|
$
|
(221
|
)
|
|
$
|
115
|
|
|
|
$
|
(787
|
)
|
|
$
|
(689
|
)
|
|
|
(98
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings Before Income Taxes
|
|
|
$
|
702
|
|
|
$
|
121
|
|
|
$
|
581
|
|
|
|
$
|
1,981
|
|
|
$
|
2,336
|
|
|
$
|
(355
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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.
|
|
|
|
Quarterly Segment Operating Profit and Corporate Results
|
|
A non-GAAP financial measure (unaudited)
|
|
|
|
|
Quarter ended
|
|
Four Quarters
|
|
|
Quarter ended
|
|
Fiscal Year
|
|
|
|
|
Mar’12
|
|
June'12
|
|
Sep'12
|
|
Dec'12
|
|
2012
|
|
|
Sep'11
|
|
Dec'11
|
|
Mar'12
|
|
June'12
|
|
2012
|
|
|
|
|
(in millions)
|
|
Oilseeds Processing Operating Profit
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Crushing and origination
|
|
|
$
|
264
|
|
|
$
|
150
|
|
|
$
|
256
|
|
|
$
|
261
|
|
|
$
|
931
|
|
|
|
$
|
106
|
|
|
$
|
121
|
|
|
$
|
264
|
|
|
$
|
150
|
|
|
$
|
641
|
|
|
Refining, packaging, biodiesel, and other
|
|
|
|
79
|
|
|
|
84
|
|
|
|
28
|
|
|
|
50
|
|
|
|
241
|
|
|
|
|
55
|
|
|
|
77
|
|
|
|
79
|
|
|
|
84
|
|
|
|
295
|
|
|
Cocoa and other
|
|
|
|
159
|
|
|
|
52
|
|
|
|
29
|
|
|
|
36
|
|
|
|
276
|
|
|
|
|
2
|
|
|
|
(30
|
)
|
|
|
159
|
|
|
|
52
|
|
|
|
183
|
|
|
Asia
|
|
|
|
40
|
|
|
|
45
|
|
|
|
23
|
|
|
|
64
|
|
|
|
172
|
|
|
|
|
57
|
|
|
|
41
|
|
|
|
40
|
|
|
|
45
|
|
|
|
183
|
|
|
|
|
|
$
|
542
|
|
|
$
|
331
|
|
|
$
|
336
|
|
|
$
|
411
|
|
|
$
|
1,620
|
|
|
|
$
|
220
|
|
|
$
|
209
|
|
|
$
|
542
|
|
|
$
|
331
|
|
|
$
|
1,302
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corn Processing Operating Profit
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sweeteners and starches
|
|
|
$
|
95
|
|
|
$
|
135
|
|
|
$
|
94
|
|
|
$
|
97
|
|
|
$
|
421
|
|
|
|
$
|
30
|
|
|
$
|
75
|
|
|
$
|
95
|
|
|
$
|
135
|
|
|
$
|
335
|
|
|
Bioproducts (excluding charges)
|
|
|
|
48
|
|
|
|
(61
|
)
|
|
|
(26
|
)
|
|
|
(94
|
)
|
|
|
(133
|
)
|
|
|
|
153
|
|
|
|
135
|
|
|
|
48
|
|
|
|
(61
|
)
|
|
|
275
|
|
|
Restructuring and exit costs
|
|
|
|
(10
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(10
|
)
|
|
|
|
-
|
|
|
|
(339
|
)
|
|
|
(10
|
)
|
|
|
-
|
|
|
|
(349
|
)
|
|
|
|
|
$
|
133
|
|
|
$
|
74
|
|
|
$
|
68
|
|
|
$
|
3
|
|
|
$
|
278
|
|
|
|
$
|
183
|
|
|
$
|
(129
|
)
|
|
$
|
133
|
|
|
$
|
74
|
|
|
$
|
261
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Agricultural Services Operating Profit
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Merchandising and handling
(excluding item)
|
|
|
$
|
148
|
|
|
$
|
30
|
|
|
$
|
108
|
|
|
$
|
129
|
|
|
$
|
415
|
|
|
|
$
|
209
|
|
|
$
|
106
|
|
|
$
|
148
|
|
|
$
|
30
|
|
|
$
|
493
|
|
|
Gain on interest in GrainCorp
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
62
|
|
|
|
62
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
Transportation
|
|
|
|
27
|
|
|
|
17
|
|
|
|
19
|
|
|
|
48
|
|
|
|
111
|
|
|
|
|
28
|
|
|
|
53
|
|
|
|
27
|
|
|
|
17
|
|
|
|
125
|
|
|
Milling and other (excluding charge)
|
|
|
|
86
|
|
|
|
76
|
|
|
|
97
|
|
|
|
78
|
|
|
|
337
|
|
|
|
|
86
|
|
|
|
81
|
|
|
|
86
|
|
|
|
76
|
|
|
|
329
|
|
|
Asset impairment charge
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(146
|
)
|
|
|
-
|
|
|
|
(146
|
)
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
|
$
|
261
|
|
|
$
|
123
|
|
|
$
|
78
|
|
|
$
|
317
|
|
|
$
|
779
|
|
|
|
$
|
323
|
|
|
$
|
240
|
|
|
$
|
261
|
|
|
$
|
123
|
|
|
$
|
947
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Operating Profit
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial
|
|
|
$
|
(18
|
)
|
|
$
|
16
|
|
|
$
|
16
|
|
|
$
|
77
|
|
|
$
|
91
|
|
|
|
$
|
(5
|
)
|
|
$
|
22
|
|
|
$
|
(18
|
)
|
|
$
|
16
|
|
|
$
|
15
|
|
|
|
|
|
$
|
(18
|
)
|
|
$
|
16
|
|
|
$
|
16
|
|
|
$
|
77
|
|
|
$
|
91
|
|
|
|
$
|
(5
|
)
|
|
$
|
22
|
|
|
$
|
(18
|
)
|
|
$
|
16
|
|
|
$
|
15
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment Operating Profit
|
|
|
$
|
918
|
|
|
$
|
544
|
|
|
$
|
498
|
|
|
$
|
808
|
|
|
$
|
2,768
|
|
|
|
$
|
721
|
|
|
$
|
342
|
|
|
$
|
918
|
|
|
$
|
544
|
|
|
$
|
2,525
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate Results
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIFO credit (charge)
|
|
|
$
|
(107
|
)
|
|
$
|
50
|
|
|
$
|
(53
|
)
|
|
$
|
113
|
|
|
$
|
3
|
|
|
|
$
|
126
|
|
|
$
|
(59
|
)
|
|
$
|
(107
|
)
|
|
$
|
50
|
|
|
$
|
10
|
|
|
Interest expense - net
|
|
|
|
(114
|
)
|
|
|
(112
|
)
|
|
|
(107
|
)
|
|
|
(112
|
)
|
|
|
(445
|
)
|
|
|
|
(98
|
)
|
|
|
(99
|
)
|
|
|
(114
|
)
|
|
|
(112
|
)
|
|
|
(423
|
)
|
|
Unallocated corporate costs
|
|
|
|
(67
|
)
|
|
|
(67
|
)
|
|
|
(70
|
)
|
|
|
(70
|
)
|
|
|
(274
|
)
|
|
|
|
(84
|
)
|
|
|
(71
|
)
|
|
|
(67
|
)
|
|
|
(67
|
)
|
|
|
(289
|
)
|
|
Employee-related exit costs
|
|
|
|
(71
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(71
|
)
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(71
|
)
|
|
|
-
|
|
|
|
(71
|
)
|
|
Debt buyback/exchange
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(5
|
)
|
|
|
(5
|
)
|
|
|
|
(4
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(4
|
)
|
|
Pension settlements
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(68
|
)
|
|
|
(68
|
)
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
Other
|
|
|
|
9
|
|
|
|
1
|
|
|
|
27
|
|
|
|
36
|
|
|
|
73
|
|
|
|
|
(1
|
)
|
|
|
8
|
|
|
|
9
|
|
|
|
1
|
|
|
|
17
|
|
|
|
|
|
$
|
(350
|
)
|
|
$
|
(128
|
)
|
|
$
|
(203
|
)
|
|
$
|
(106
|
)
|
|
$
|
(787
|
)
|
|
|
$
|
(61
|
)
|
|
$
|
(221
|
)
|
|
$
|
(350
|
)
|
|
$
|
(128
|
)
|
|
$
|
(760
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings Before Income Taxes
|
|
|
$
|
568
|
|
|
$
|
416
|
|
|
$
|
295
|
|
|
$
|
702
|
|
|
$
|
1,981
|
|
|
|
$
|
660
|
|
|
$
|
121
|
|
|
$
|
568
|
|
|
$
|
416
|
|
|
$
|
1,765
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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.
|
|
|
Consolidated Statements of Earnings
|
|
(unaudited)
|
|
|
|
|
|
|
|
Quarter ended
|
|
|
|
Six months ended
|
|
|
|
|
|
December 31
|
|
|
|
December 31
|
|
|
|
|
2012
|
|
2011
|
|
|
2012
|
|
2011
|
|
|
|
|
(in millions, except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales and other operating income
|
|
|
$
|
24,921
|
|
|
$
|
23,306
|
|
|
|
$
|
46,729
|
|
|
$
|
45,208
|
|
|
Cost of products sold
|
|
|
|
23,925
|
|
|
|
22,493
|
|
|
|
|
44,927
|
|
|
|
43,361
|
|
|
Gross profit
|
|
|
|
996
|
|
|
|
813
|
|
|
|
|
1,802
|
|
|
|
1,847
|
|
|
Selling, general and administrative expenses
|
|
|
|
(479
|
)
|
|
|
(423
|
)
|
|
|
|
(869
|
)
|
|
|
(830
|
)
|
|
Equity in earnings of unconsolidated
affiliates
|
|
|
|
142
|
|
|
|
127
|
|
|
|
|
255
|
|
|
|
251
|
|
|
Investment income
|
|
|
|
29
|
|
|
|
22
|
|
|
|
|
59
|
|
|
|
62
|
|
|
Interest expense
|
|
|
|
(107
|
)
|
|
|
(96
|
)
|
|
|
|
(213
|
)
|
|
|
(209
|
)
|
|
Asset impairment, exit and restructuring costs
|
|
|
|
-
|
|
|
|
(352
|
)
|
|
|
|
(146
|
)
|
|
|
(352
|
)
|
|
Other income (expense) – net
|
|
|
|
121
|
|
|
|
30
|
|
|
|
|
109
|
|
|
|
12
|
|
|
Earnings before income taxes
|
|
|
|
702
|
|
|
|
121
|
|
|
|
|
997
|
|
|
|
781
|
|
|
Income taxes
|
|
|
|
(192
|
)
|
|
|
(38
|
)
|
|
|
|
(303
|
)
|
|
|
(237
|
)
|
|
Net earnings including noncontrolling interests
|
|
|
|
510
|
|
|
|
83
|
|
|
|
|
694
|
|
|
|
544
|
|
|
Less: Net earnings (losses) attributable to noncontrolling interests
|
|
|
|
-
|
|
|
|
3
|
|
|
|
|
2
|
|
|
|
4
|
|
|
Net earnings attributable to ADM
|
|
|
$
|
510
|
|
|
$
|
80
|
|
|
|
$
|
692
|
|
|
$
|
540
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per common share
|
|
|
$
|
0.77
|
|
|
$
|
0.12
|
|
|
|
$
|
1.05
|
|
|
$
|
0.81
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average number of shares outstanding
|
|
|
|
661
|
|
|
|
667
|
|
|
|
|
661
|
|
|
|
670
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income (expense) - net consists of:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net gain on marketable securities transactions
|
|
|
$
|
43
|
|
|
$
|
11
|
|
|
|
$
|
45
|
|
|
$
|
16
|
|
|
Gain on interest in GrainCorp
|
|
|
|
62
|
|
|
|
-
|
|
|
|
|
62
|
|
|
|
-
|
|
|
Debt buyback/exchange costs
|
|
|
|
(5
|
)
|
|
|
-
|
|
|
|
|
(5
|
)
|
|
|
(12
|
)
|
|
Other – net
|
|
|
|
21
|
|
|
|
19
|
|
|
|
|
7
|
|
|
|
8
|
|
|
|
|
|
$
|
121
|
|
|
$
|
30
|
|
|
|
$
|
109
|
|
|
$
|
12
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Summary of Financial Condition
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31,
|
|
|
|
December 31,
|
|
|
|
|
2012
|
|
|
|
2011
|
|
|
|
|
(in millions)
|
|
NET INVESTMENT IN
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
1,714
|
|
|
$
|
864
|
|
Short-term marketable securities
|
|
|
576
|
|
|
|
594
|
|
Operating working capital (a)
|
|
|
13,563
|
|
|
|
13,373
|
|
Property, plant, and equipment
|
|
|
10,123
|
|
|
|
9,601
|
|
Investments in and advances to affiliates
|
|
|
3,170
|
|
|
|
3,211
|
|
Long-term marketable securities
|
|
|
717
|
|
|
|
352
|
|
Other non-current assets
|
|
|
1,364
|
|
|
|
1,313
|
|
|
|
$
|
31,227
|
|
|
$
|
29,308
|
|
|
|
|
|
|
|
|
|
|
FINANCED BY
|
|
|
|
|
|
|
|
|
Short-term debt
|
|
$
|
2,816
|
|
|
$
|
834
|
|
Long-term debt, including current maturities
|
|
|
6,724
|
|
|
|
8,364
|
|
Deferred liabilities
|
|
|
2,556
|
|
|
|
1,945
|
|
Shareholders’ equity
|
|
|
19,131
|
|
|
|
18,165
|
|
|
|
$
|
31,227
|
|
|
$
|
29,308
|
|
|
|
|
|
|
|
|
|
(a) Current assets (excluding cash and cash equivalents and short-term
marketable securities) less current liabilities (excluding short-term
debt and current maturities of long-term debt)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Summary of Cash Flows
|
|
|
|
|
|
|
|
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended
|
|
|
|
|
|
December 31
|
|
|
|
|
|
2012
|
|
|
2011
|
|
|
|
|
|
(in millions)
|
|
Operating Activities
|
|
|
|
|
|
|
|
|
|
Net earnings
|
|
|
$
|
694
|
|
|
|
$
|
544
|
|
|
Depreciation and amortization
|
|
|
|
435
|
|
|
|
|
414
|
|
|
Asset impairment charge
|
|
|
|
146
|
|
|
|
|
350
|
|
|
Other – net
|
|
|
|
(4
|
)
|
|
|
|
102
|
|
|
Changes in operating assets and liabilities
|
|
|
|
1,207
|
|
|
|
|
1,631
|
|
|
Total Operating Activities
|
|
|
|
2,478
|
|
|
|
|
3,041
|
|
|
|
|
|
|
|
|
|
|
|
|
Investing Activities
|
|
|
|
|
|
|
|
|
|
Purchases of property, plant and equipment
|
|
|
|
(615
|
)
|
|
|
|
(852
|
)
|
|
Net assets of businesses acquired
|
|
|
|
(26
|
)
|
|
|
|
(206
|
)
|
|
Proceeds from sale of Gruma
|
|
|
|
450
|
|
|
|
|
-
|
|
|
Marketable securities – net
|
|
|
|
(898
|
)
|
|
|
|
195
|
|
|
Cash held in a deconsolidated entity
|
|
|
|
-
|
|
|
|
|
(130
|
)
|
|
Other investing activities
|
|
|
|
116
|
|
|
|
|
59
|
|
|
Total Investing Activities
|
|
|
|
(973
|
)
|
|
|
|
(934
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Financing Activities
|
|
|
|
|
|
|
|
|
|
Long-term debt borrowings
|
|
|
|
106
|
|
|
|
|
91
|
|
|
Long-term debt payments
|
|
|
|
(1,423
|
)
|
|
|
|
(173
|
)
|
|
Net borrowings (repayments) under lines of credit
|
|
|
|
660
|
|
|
|
|
(1,076
|
)
|
|
Debt repayment premium and costs
|
|
|
|
(197
|
)
|
|
|
|
(32
|
)
|
|
Purchases of treasury stock
|
|
|
|
-
|
|
|
|
|
(427
|
)
|
|
Cash dividends
|
|
|
|
(230
|
)
|
|
|
|
(224
|
)
|
|
Other
|
|
|
|
2
|
|
|
|
|
(17
|
)
|
|
Total Financing Activities
|
|
|
|
(1,082
|
)
|
|
|
|
(1,858
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Increase (decrease) in cash and cash equivalents
|
|
|
|
423
|
|
|
|
|
249
|
|
|
Cash and cash equivalents - beginning of period
|
|
|
|
1,291
|
|
|
|
|
615
|
|
|
Cash and cash equivalents - end of period
|
|
|
$
|
1,714
|
|
|
|
$
|
864
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment Operating Analysis
|
|
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended
|
|
|
|
Four Quarters Ended
|
|
|
|
|
|
December 31
|
|
|
|
December 31
|
|
|
|
|
2012
|
|
|
2011
|
|
|
|
2012
|
|
2011
|
|
|
|
|
(‘000s of metric tons)
|
|
Processed volumes
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Oilseeds
|
|
|
|
8,406
|
|
|
8,191
|
|
|
|
31,820
|
|
29,930
|
|
Corn
|
|
|
|
6,026
|
|
|
6,297
|
|
|
|
24,517
|
|
24,078
|
|
Milling and Cocoa
|
|
|
|
1,813
|
|
|
1,855
|
|
|
|
7,023
|
|
7,211
|
|
Total processed volumes
|
|
|
|
16,245
|
|
|
16,343
|
|
|
|
63,360
|
|
61,219
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended
|
|
|
|
Four Quarters Ended
|
|
|
|
|
|
December 31
|
|
|
|
December 31
|
|
|
|
|
2012
|
|
2011
|
|
|
|
2012
|
|
2011
|
|
|
|
|
(In millions)
|
|
Net sales and other operating income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Oilseeds Processing
|
|
|
$
|
8,364
|
|
$
|
8,266
|
|
|
$
|
35,430
|
|
$
|
33,581
|
|
Corn Processing
|
|
|
|
3,041
|
|
|
3,158
|
|
|
|
11,830
|
|
|
11,755
|
|
Agricultural Services
|
|
|
|
13,485
|
|
|
11,854
|
|
|
|
43,159
|
|
|
42,708
|
|
Other
|
|
|
|
31
|
|
|
28
|
|
|
|
140
|
|
|
111
|
|
Total net sales and other
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
operating income
|
|
|
$
|
24,921
|
|
$
|
23,306
|
|
|
$
|
90,559
|
|
$
|
88,155
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment Operating Analysis
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Quarter ended
|
|
Four Quarters
|
|
|
|
|
Mar'12
|
|
June'12
|
|
Sept'12
|
|
Dec'12
|
|
2012
|
|
|
|
|
(In '000 metric tons)
|
|
Processed volumes
|
|
|
|
|
|
|
|
|
|
|
|
|
Oilseeds
|
|
|
|
8,159
|
|
|
7,793
|
|
|
7,462
|
|
|
8,406
|
|
|
31,820
|
|
Corn
|
|
|
|
6,174
|
|
|
6,036
|
|
|
6,281
|
|
|
6,026
|
|
|
24,517
|
|
Milling and Cocoa
|
|
|
|
1,740
|
|
|
1,680
|
|
|
1,790
|
|
|
1,813
|
|
|
7,023
|
|
Total processed volumes
|
|
|
|
16,073
|
|
|
15,509
|
|
|
15,533
|
|
|
16,245
|
|
|
63,360
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter ended
|
|
Fiscal 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
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter ended
|
|
Four Quarters
|
|
|
|
|
Mar'12
|
|
June'12
|
|
Sept'12
|
|
Dec'12
|
|
2012
|
|
|
|
|
(In millions)
|
|
Net sales and other operating income
|
|
|
|
|
|
|
|
|
|
|
|
|
Oilseeds Processing
|
|
|
$
|
7,715
|
|
$
|
9,663
|
|
$
|
9,688
|
|
$
|
8,364
|
|
$
|
35,430
|
|
Corn Processing
|
|
|
|
2,835
|
|
|
2,828
|
|
|
3,126
|
|
|
3,041
|
|
|
11,830
|
|
Agricultural Services
|
|
|
|
10,571
|
|
|
10,147
|
|
|
8,956
|
|
|
13,485
|
|
|
43,159
|
|
Other
|
|
|
|
34
|
|
|
37
|
|
|
38
|
|
|
31
|
|
|
140
|
|
Total net sales and other operating income
|
|
|
$
|
21,155
|
|
$
|
22,675
|
|
$
|
21,808
|
|
$
|
24,921
|
|
$
|
90,559
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter ended
|
|
Fiscal Year
|
|
|
|
|
Sept'11
|
|
Dec'11
|
|
Mar'12
|
|
June'12
|
|
2012
|
|
|
|
|
(In millions)
|
|
Net sales and other operating income
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Earnings Per Share
|
|
A non-GAAP financial measure
|
|
(unaudited)
|
|
|
|
|
Quarter Ended
|
|
|
Four Quarters
Ended
|
|
|
|
|
December 31
|
|
|
December 31
|
|
|
|
|
2012
|
|
|
2011
|
|
|
2012
|
|
Earnings Per Share (fully-diluted)
|
|
|
$
|
0.77
|
|
|
|
$
|
0.12
|
|
|
$
|
2.08
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
LIFO charge/(credit) (a)
|
|
|
|
(0.11
|
)
|
|
|
|
0.06
|
|
|
|
-
|
|
|
Asset impairment charge – Gruma (b)
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
0.16
|
|
|
Asset impairment charge – PHA (c)
|
|
|
|
-
|
|
|
|
|
0.33
|
|
|
|
-
|
|
|
Restructuring and exit costs (d)
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
0.08
|
|
|
Gain on interest in GrainCorp (e)
|
|
|
|
(0.07
|
)
|
|
|
|
-
|
|
|
|
(0.07
|
)
|
|
Gain on sale of assets (f)
|
|
|
|
(0.04
|
)
|
|
|
|
-
|
|
|
|
(0.04
|
)
|
|
Pension settlements (g)
|
|
|
|
0.07
|
|
|
|
|
-
|
|
|
|
0.07
|
|
|
Brazil income tax remeasurement (h)
|
|
|
|
0.01
|
|
|
|
|
-
|
|
|
|
0.02
|
|
|
Adjust quarterly effective tax rate to fiscal year average (i)
|
|
|
|
(0.03
|
)
|
|
|
|
-
|
|
|
|
-
|
|
|
Sub-total adjustments
|
|
|
|
(0.17
|
)
|
|
|
|
0.39
|
|
|
|
0.22
|
|
|
Adjusted Earnings Per Share (non-GAAP)
|
|
|
$
|
0.60
|
|
|
|
$
|
0.51
|
|
|
$
|
2.30
|
|
|
|
|
(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 asset impairment charge related to the Company’s investments
associated with Gruma, tax effected using the applicable U.S. and
Mexican tax rates.
|
|
|
|
(c)
|
|
The asset impairment charge related to the PHA business, tax
effected using the Company’s U.S. effective income tax rate.
|
|
|
|
(d)
|
|
The restructuring and exit costs related primarily to the global
workforce reduction program, tax effected using the applicable
U.S., European and South American tax rates.
|
|
|
|
(e)
|
|
The gain on the Company’s interest in the shares of GrainCorp, tax
effected using the applicable U.S. and European tax rates.
|
|
|
|
(f)
|
|
The gain on the sale of certain of the Company’s exchange
membership interests, tax effected using the Company’s U.S.
effective income tax rate.
|
|
|
|
(g)
|
|
The one-time expense related to pension settlements, tax effected
using the applicable U.S. and European tax rates.
|
|
|
|
(h)
|
|
The tax impact of foreign-exchange remeasurement of certain
Brazilian assets.
|
|
|
|
(i)
|
|
The impact to EPS if the December 31, 2012 final effective income
tax rate of 30% were used.
|
|
|
|
|
|
|
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
David Weintraub, 217-424-5413
or
Investor Relations
Ruth Ann Wisener, 217-451-8286