Adjusted EPS up 67 percent from year-ago period
Net earnings of $533 million or $0.81 per share
DECATUR, Ill.--(BUSINESS WIRE)--Archer Daniels Midland Company (NYSE: ADM) today reported financial
results for the quarter ended June 30, 2014.
The company reported adjusted earnings per share1 of $0.77,
up from $0.46 in the same period last year. Adjusted segment operating
profit1 was $819 million, up 32 percent from $621 million in
the year-ago period.
Net earnings for the quarter were $533 million, or $0.81 per share, and
segment operating profit1 was $888 million.
“In the second quarter, the ADM team continued to execute very well and
delivered strong results. We capitalized on robust ethanol demand, a
recovery of U.S. grain export volumes and continuing strong demand for
oilseeds products,” said ADM Chairman and CEO Patricia Woertz.
“The team also continues to drive improved returns, with this quarter’s
ROIC showing a 200-basis-point improvement over last year.
“Today, the crops in North America and Europe are developing nicely, so
we are preparing for what could be very large harvests.”
Second Quarter 2014 Highlights1
-
Adjusted EPS of $0.77 excludes approximately $73 million in pretax
LIFO income, or $0.07 per share, and $31 million in pretax costs
related to restructuring, or about $0.03 per share.
-
Oilseeds Processing increased $18 million, as continued good North
American crushing results were partially offset by weaker origination
results in South America and lower results from Wilmar.
-
Corn Processing increased $69 million on strong ethanol demand and
steady sweetener volumes.
-
Agricultural Services increased $122 million, driven by strong U.S.
exports and significantly improved results from international
merchandising.
-
Trailing four-quarter-average adjusted ROIC increased 200 basis points
year over year.
-
The net debt position2 of the company declined to $3.6
billion, compared to $5.5 billion in the same period last year, which
also resulted in a lower net interest expense.
-
ADM repurchased 7.2 million shares during the quarter, bringing
year-to-date buybacks to 11.5 million shares for about $500 million.
Oilseeds Earnings Steady with Strong N.A. Crush Offset by Weaker S.A.
Origination and Wilmar
Oilseeds operating profit of $328 million represented an increase of $18
million from the same period one year earlier. These numbers exclude a
negligible charge for cocoa hedge timing effects, versus a gain of $11
million, or $0.01 per share, in the year-ago period.
Crushing and origination operating profit declined $22 million to $163
million. North and South American soybean crushing operations and North
American canola crushing operations all saw good volumes and margins.
Those were offset by lower results from South American origination amid
slower farmer selling.
Refining, packaging, biodiesel and other generated a profit of $119
million for the quarter, up $26 million with good volumes and margins
for refined and packaged oils in South America and record results for
lecithin and protein specialties.
Cocoa and other earned $20 million in the quarter, up $37 million from
the year-ago period, reflecting the improved margin environment in the
cocoa business.
Oilseeds results in Asia for the quarter were down $23 million from the
same period last year, principally reflecting lower results from Wilmar
International Limited.
Corn Processing Results Improved Significantly on Strong Performances
Across the Segment
Corn processing operating profit of $277 million represented an increase
of $69 million from the same period one year earlier. These numbers
exclude positive timing effects of $70 million, or $0.07 per share,
versus $15 million, or $0.01 per share, in the year-ago period.
Sweeteners and starches results increased $25 million to $136 million on
steady volumes, with lower average selling prices offset by lower net
corn costs.
Bioproducts results increased $44 million to $141 million driven by
strong demand and good margins in ethanol.
Agricultural Services Results Improve on Strong U.S. Grain Exports
and International Merchandising
Agricultural Services operating profit was $203 million, up $122 million
from the year-ago period.
Merchandising and handling earnings increased $101 million to $115
million, amid strong U.S. export volumes, partial recovery of a loss
reserve, and continued improvement in international merchandising
results.
Transportation results increased $24 million to $27 million with
southbound barge freight utilization driven by strong U.S. exports, and
with good northbound utilization.
Milling and other results were essentially flat as lower milling results
were offset by strong performance by the edible bean business.
Other Items of Note
This quarter’s effective tax rate was 28 percent, versus 29 percent in
the same period last year.
As additional information to help clarify underlying business
performance, the tables on page 9 include both adjusted EPS as well as
adjusted EPS excluding significant timing effects.
Conference Call Information
ADM will host a conference call and audio webcast on Aug. 5, 2014, 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 69056477.
Replay of the call will be available from Aug. 6, 2014, to Aug. 12,
2014. 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 69056477. 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, 31,000 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, 470 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 These are non-GAAP financial measures; see pages 4 and 9
for explanations and reconciliations.
2 Total debt less
cash and cash equivalents and short-term marketable securities.
Financial Tables Follow
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment Operating Profit and Corporate Results
|
|
A non-GAAP financial measure
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter ended
June 30
|
|
|
|
|
Six months ended
June 30
|
|
|
|
|
(In millions)
|
|
2014
|
|
2013
|
|
Change
|
|
2014
|
|
2013
|
|
Change
|
|
Oilseeds Processing Operating Profit
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Crushing and origination
|
|
$
|
163
|
|
|
$
|
185
|
|
|
$
|
(22
|
)
|
|
$
|
324
|
|
|
$
|
341
|
|
|
$
|
(17
|
)
|
|
Refining, packaging, biodiesel, and other
|
|
119
|
|
|
93
|
|
|
26
|
|
|
232
|
|
|
201
|
|
|
31
|
|
|
Cocoa and other (excluding timing effects)
|
|
20
|
|
|
(17
|
)
|
|
37
|
|
|
50
|
|
|
(44
|
)
|
|
94
|
|
|
Cocoa hedge timing effects*
|
|
(1
|
)
|
|
11
|
|
|
(12
|
)
|
|
(25
|
)
|
|
16
|
|
|
(41
|
)
|
|
Asia
|
|
26
|
|
|
49
|
|
|
(23
|
)
|
|
80
|
|
|
120
|
|
|
(40
|
)
|
|
Total Oilseeds Processing
|
|
$
|
327
|
|
|
$
|
321
|
|
|
$
|
6
|
|
|
$
|
661
|
|
|
$
|
634
|
|
|
$
|
27
|
|
|
Corn Processing Operating Profit
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sweeteners and starches (excluding timing effects)
|
|
$
|
136
|
|
|
$
|
111
|
|
|
$
|
25
|
|
|
$
|
243
|
|
|
$
|
231
|
|
|
$
|
12
|
|
|
Bioproducts (excluding timing effects )
|
|
141
|
|
|
97
|
|
|
44
|
|
|
295
|
|
|
174
|
|
|
121
|
|
|
Corn hedge timing effects*
|
|
70
|
|
|
15
|
|
|
55
|
|
|
5
|
|
|
(29
|
)
|
|
34
|
|
|
Total Corn Processing
|
|
$
|
347
|
|
|
$
|
223
|
|
|
$
|
124
|
|
|
$
|
543
|
|
|
$
|
376
|
|
|
$
|
167
|
|
|
Agricultural Services Operating Profit
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Merchandising and handling
|
|
$
|
115
|
|
|
$
|
14
|
|
|
$
|
101
|
|
|
$
|
184
|
|
|
$
|
100
|
|
|
$
|
84
|
|
|
Milling and other
|
|
61
|
|
|
64
|
|
|
(3
|
)
|
|
112
|
|
|
123
|
|
|
(11
|
)
|
|
Transportation
|
|
27
|
|
|
3
|
|
|
24
|
|
|
60
|
|
|
9
|
|
|
51
|
|
|
Total Agricultural Services
|
|
$
|
203
|
|
|
$
|
81
|
|
|
$
|
122
|
|
|
$
|
356
|
|
|
$
|
232
|
|
|
$
|
124
|
|
|
Other Operating Profit
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial
|
|
$
|
11
|
|
|
$
|
22
|
|
|
$
|
(11
|
)
|
|
$
|
19
|
|
|
$
|
35
|
|
|
$
|
(16
|
)
|
|
Total Other
|
|
$
|
11
|
|
|
$
|
22
|
|
|
$
|
(11
|
)
|
|
$
|
19
|
|
|
$
|
35
|
|
|
$
|
(16
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment Operating Profit
|
|
$
|
888
|
|
|
$
|
647
|
|
|
$
|
241
|
|
|
$
|
1,579
|
|
|
$
|
1,277
|
|
|
$
|
302
|
|
|
*Memo: Adjusted Segment Operating Profit
|
|
$
|
819
|
|
|
$
|
621
|
|
|
$
|
198
|
|
|
$
|
1,599
|
|
|
$
|
1,290
|
|
|
$
|
309
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate Results
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIFO credit (charge)
|
|
$
|
73
|
|
|
$
|
(39
|
)
|
|
$
|
112
|
|
|
$
|
(86
|
)
|
|
$
|
(73
|
)
|
|
$
|
(13
|
)
|
|
Interest expense - net
|
|
(78
|
)
|
|
(104
|
)
|
|
26
|
|
|
(171
|
)
|
|
(209
|
)
|
|
38
|
|
|
Unallocated corporate costs
|
|
(109
|
)
|
|
(71
|
)
|
|
(38
|
)
|
|
(189
|
)
|
|
(153
|
)
|
|
(36
|
)
|
|
Other charges
|
|
(31
|
)
|
|
(80
|
)
|
|
49
|
|
|
(31
|
)
|
|
(105
|
)
|
|
74
|
|
|
Minority interest and other
|
|
(8
|
)
|
|
(36
|
)
|
|
28
|
|
|
(1
|
)
|
|
(45
|
)
|
|
44
|
|
|
Total Corporate
|
|
$
|
(153
|
)
|
|
$
|
(330
|
)
|
|
$
|
177
|
|
|
$
|
(478
|
)
|
|
$
|
(585
|
)
|
|
$
|
107
|
|
|
Earnings Before Income Taxes
|
|
$
|
735
|
|
|
$
|
317
|
|
|
$
|
418
|
|
|
$
|
1,101
|
|
|
$
|
692
|
|
|
$
|
409
|
|
Segment operating profit is ADM’s consolidated income from operations
before income tax excluding corporate items. Adjusted segment operating
profit is segment operating profit adjusted, where applicable, for
specified items and timing effects (see items denoted*). Timing effects
relate to hedge ineffectiveness and mark-to-market hedge timing effects.
Management believes that segment operating profit and adjusted segment
operating profit are useful measures of ADM’s performance because they
provide investors information about ADM’s business unit performance
excluding corporate overhead costs as well as specified items and timing
effects. Segment operating profit and adjusted segment operating profit
are non-GAAP financial measures and are not intended to replace earnings
before income tax, the most directly comparable GAAP financial measure.
Segment operating profit and adjusted segment operating profit are not
measures of consolidated operating results under U.S. GAAP and should
not be considered alternatives to income before income taxes or any
other measure of consolidated operating results under U.S. GAAP.
|
|
|
|
|
|
|
Consolidated Statements of Earnings
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
Quarter ended
June 30
|
|
Six months ended
June 30
|
|
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
|
|
(in millions, except per share amounts)
|
|
Revenues
|
|
$
|
21,494
|
|
|
$
|
22,541
|
|
|
$
|
42,190
|
|
|
$
|
44,268
|
|
|
Cost of products sold
|
|
20,322
|
|
|
21,734
|
|
|
40,343
|
|
|
42,705
|
|
|
Gross profit
|
|
1,172
|
|
|
807
|
|
|
1,847
|
|
|
1,563
|
|
|
Selling, general, and administrative expenses
|
|
426
|
|
|
452
|
|
|
819
|
|
|
888
|
|
|
Asset impairment, exit, and restructuring costs
|
|
31
|
|
|
—
|
|
|
31
|
|
|
—
|
|
|
Equity in (earnings) losses of unconsolidated affiliates
|
|
(78
|
)
|
|
(62
|
)
|
|
(210
|
)
|
|
(199
|
)
|
|
Interest income
|
|
(24
|
)
|
|
(29
|
)
|
|
(46
|
)
|
|
(56
|
)
|
|
Interest expense
|
|
79
|
|
|
107
|
|
|
172
|
|
|
213
|
|
|
Other (income) expense - net
|
|
3
|
|
|
22
|
|
|
(20
|
)
|
|
25
|
|
|
Earnings before income taxes
|
|
735
|
|
|
317
|
|
|
1,101
|
|
|
692
|
|
|
Income taxes
|
|
(203
|
)
|
|
(91
|
)
|
|
(301
|
)
|
|
(196
|
)
|
|
Net earnings including noncontrolling interests
|
|
532
|
|
|
226
|
|
|
800
|
|
|
496
|
|
|
Less: Net earnings (losses) attributable to noncontrolling interests
|
|
(1
|
)
|
|
3
|
|
|
—
|
|
|
4
|
|
|
Net earnings attributable to ADM
|
|
$
|
533
|
|
|
$
|
223
|
|
|
$
|
800
|
|
|
$
|
492
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per common share
|
|
$
|
0.81
|
|
|
$
|
0.34
|
|
|
$
|
1.21
|
|
|
$
|
0.74
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average number of shares outstanding
|
|
659
|
|
|
663
|
|
|
661
|
|
|
663
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other (income) expense - net consists of:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain on sales of assets/business (a)
|
|
$
|
(13
|
)
|
|
(16
|
)
|
|
(34
|
)
|
|
(21
|
)
|
|
Net loss (gain) on marketable securities transactions
|
|
—
|
|
|
(5
|
)
|
|
—
|
|
|
(5
|
)
|
|
Loss on Australian foreign exchange hedges
|
|
—
|
|
|
51
|
|
|
—
|
|
|
51
|
|
|
Other - net
|
|
16
|
|
|
(8
|
)
|
|
14
|
|
|
—
|
|
|
|
|
$
|
3
|
|
|
$
|
22
|
|
|
$
|
(20
|
)
|
|
$
|
25
|
|
(a) Current period gain includes individually insignificant disposals in
Oilseeds (Q2 $0, YTD $15 million), Ag Services (Q2 $13 million, YTD $20
million), Corporate (Q2 and YTD $1 million) and a loss in Corn (Q2 $1
million, YTD $2 million). Prior period gain includes individually
insignificant disposals in Oilseeds (Q2 $6 million, YTD $8 million),
Corn (Q2 and YTD $3 million), Ag Services (Q2 $3 million, YTD $6
million), Other (Q2 and YTD $6 million) and a loss in Corporate (Q2 and
YTD $2 million).
|
|
|
|
|
|
|
Summary of Financial Condition
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
June 30,
2014
|
|
June 30,
2013
|
|
|
|
(in millions)
|
|
NET INVESTMENT IN
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
1,630
|
|
|
$
|
1,848
|
|
Short-term marketable securities
|
|
366
|
|
|
181
|
|
Operating working capital (a)
|
|
11,024
|
|
|
12,042
|
|
Property, plant, and equipment
|
|
10,110
|
|
|
10,091
|
|
Investments in and advances to affiliates
|
|
3,419
|
|
|
3,145
|
|
Long-term marketable securities
|
|
539
|
|
|
720
|
|
Other non-current assets
|
|
1,204
|
|
|
1,246
|
|
|
|
$
|
28,292
|
|
|
$
|
29,273
|
|
FINANCED BY
|
|
|
|
|
|
|
Short-term debt
|
|
$
|
233
|
|
|
$
|
1,016
|
|
Long-term debt, including current maturities
|
|
5,389
|
|
|
6,508
|
|
Deferred liabilities
|
|
2,451
|
|
|
2,736
|
|
Shareholders' equity
|
|
20,219
|
|
|
19,013
|
|
|
|
$
|
28,292
|
|
|
$
|
29,273
|
(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
June 30
|
|
|
|
2014
|
|
2013
|
|
|
|
(in millions)
|
|
Operating Activities
|
|
|
|
|
|
|
|
Net earnings
|
|
$
|
800
|
|
|
$
|
496
|
|
|
Depreciation and amortization
|
|
432
|
|
|
454
|
|
|
Other - net
|
|
(180
|
)
|
|
(243
|
)
|
|
Changes in operating assets and liabilities
|
|
(69
|
)
|
|
1,641
|
|
|
Total Operating Activities
|
|
983
|
|
|
2,348
|
|
|
|
|
|
|
|
|
|
|
Investing Activities
|
|
|
|
|
|
|
|
Purchases of property, plant and equipment
|
|
(398
|
)
|
|
(442
|
)
|
|
Net assets of businesses acquired
|
|
—
|
|
|
(16
|
)
|
|
Marketable securities - net
|
|
50
|
|
|
324
|
|
|
Other investing activities
|
|
91
|
|
|
192
|
|
|
Total Investing Activities
|
|
(257
|
)
|
|
58
|
|
|
|
|
|
|
|
|
|
|
Financing Activities
|
|
|
|
|
|
|
|
Long-term debt borrowings
|
|
1
|
|
|
20
|
|
|
Long-term debt payments
|
|
(1,162
|
)
|
|
(260
|
)
|
|
Net borrowings (payments) under lines of credit
|
|
(129
|
)
|
|
(1,787
|
)
|
|
Purchases of treasury stock
|
|
(493
|
)
|
|
(11
|
)
|
|
Cash dividends
|
|
(315
|
)
|
|
(250
|
)
|
|
Acquisition of noncontrolling interest
|
|
(157
|
)
|
|
—
|
|
|
Other
|
|
38
|
|
|
16
|
|
|
Total Financing Activities
|
|
(2,217
|
)
|
|
(2,272
|
)
|
|
|
|
|
|
|
|
|
|
Increase (decrease) in cash and cash equivalents
|
|
(1,491
|
)
|
|
134
|
|
|
Cash and cash equivalents - beginning of period
|
|
3,121
|
|
|
1,714
|
|
|
Cash and cash equivalents - end of period
|
|
$
|
1,630
|
|
|
$
|
1,848
|
|
|
|
|
|
|
|
|
Segment Operating Analysis
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
Quarter ended
June 30
|
|
Six months ended
June 30
|
|
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
|
|
(in '000s metric tons)
|
|
Processed volumes
|
|
|
|
|
|
|
|
|
|
|
|
|
Oilseeds
|
|
7,785
|
|
|
7,382
|
|
|
16,474
|
|
|
15,737
|
|
Corn
|
|
6,336
|
|
|
6,226
|
|
|
12,085
|
|
|
11,520
|
|
Milling and Cocoa
|
|
1,788
|
|
|
1,755
|
|
|
3,561
|
|
|
3,486
|
|
Total processed volumes
|
|
15,909
|
|
|
15,363
|
|
|
32,120
|
|
|
30,743
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter ended
June 30
|
|
Six months ended
June 30
|
|
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
|
|
(in millions)
|
|
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
Oilseeds Processing
|
|
$
|
8,841
|
|
|
$
|
9,336
|
|
|
$
|
16,644
|
|
|
$
|
17,479
|
|
Corn Processing
|
|
3,071
|
|
|
3,638
|
|
|
5,901
|
|
|
6,691
|
|
Agricultural Services
|
|
9,513
|
|
|
9,530
|
|
|
19,487
|
|
|
20,030
|
|
Other
|
|
69
|
|
|
37
|
|
|
158
|
|
|
68
|
|
Total revenues
|
|
$
|
21,494
|
|
|
$
|
22,541
|
|
|
$
|
42,190
|
|
|
$
|
44,268
|
|
|
|
|
|
|
|
Adjusted Earnings Per Share
|
|
A non-GAAP financial measure
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
Quarter ended
June 30
|
|
Six months ended
June 30
|
|
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
Reported EPS (fully diluted)
|
|
$
|
0.81
|
|
|
$
|
0.34
|
|
|
$
|
1.21
|
|
|
$
|
0.74
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIFO (credit) charge (a)
|
|
(0.07
|
)
|
|
0.04
|
|
|
0.08
|
|
|
0.07
|
|
|
Restructuring/relocation charges (b)
|
|
0.03
|
|
|
—
|
|
|
0.03
|
|
|
—
|
|
|
FCPA charges (c)
|
|
—
|
|
|
0.03
|
|
|
—
|
|
|
0.06
|
|
|
GrainCorp-related charges (d)
|
|
—
|
|
|
0.05
|
|
|
—
|
|
|
0.05
|
|
|
Effective tax rate adjustments (e)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.01
|
)
|
|
Sub-total adjustments
|
|
(0.04
|
)
|
|
0.12
|
|
|
0.11
|
|
|
0.17
|
|
|
Adjusted earnings per share (non-GAAP)
|
|
$
|
0.77
|
|
|
$
|
0.46
|
|
|
$
|
1.32
|
|
|
$
|
0.91
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Memo: Timing effects (gain) loss
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corn (f)
|
|
(0.07
|
)
|
|
(0.01
|
)
|
|
(0.01
|
)
|
|
0.03
|
|
|
Cocoa (g)
|
|
—
|
|
|
(0.01
|
)
|
|
0.03
|
|
|
(0.02
|
)
|
|
Sub-total timing effects
|
|
(0.07
|
)
|
|
(0.02
|
)
|
|
0.02
|
|
|
0.01
|
|
|
Adjusted EPS excluding timing effects (non-GAAP)
|
|
$
|
0.70
|
|
|
$
|
0.44
|
|
|
$
|
1.34
|
|
|
$
|
0.92
|
|
|
(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)
|
|
Relocation of the global headquarters to Chicago, Ill., costs
related to integration of Toepfer following the acquisition of the
noncontrolling interest, and other restructuring charges totaling
$31 million, pretax, tax effected using the applicable tax rates.
|
|
(c)
|
|
Charges, net of estimated tax, related to settlements with
government agencies pertaining to potential violations of
anti-corruption practices.
|
|
(d)
|
|
The loss on Australian dollar foreign exchange hedges tax effected
using the Company's U.S. effective income tax rate.
|
|
(e)
|
|
Impact to EPS due to the change in annual effective tax rate.
|
|
(f)
|
|
Corn timing effects in the current quarter are comprised of corn
hedge ineffectiveness losses of $0.01 per share and ethanol
mark-to-market gains of $0.08 per share. The prior period timing
item is a gain of $0.01 per share for corn hedge ineffectiveness.
|
|
(g)
|
|
The company’s pretax cocoa timing effects, tax effected using the
company's effective tax rate.
|
Adjusted EPS and adjusted EPS excluding timing effects reflect ADM’s
fully diluted EPS after removal of the effect on Reported EPS of certain
specified items and timing effects as more fully described above.
Management believes that these are useful measures of ADM’s performance
because they provide investors additional information about ADM’s
operations allowing better evaluation of ongoing business performance.
These non-GAAP financial measures are not intended to replace or be an
alternative to Reported 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 and timing effect.
Archer Daniels Midland Company
Media Relations
David Weintraub
217-424-5413
or
Investor Relations
Case McGee
217-451-8286