Adjusted EPS up 72 percent from year-ago period
Net earnings of $747 million, or $1.14 per share
CHICAGO--(BUSINESS WIRE)--Archer Daniels Midland Company (NYSE: ADM) today reported financial
results for the quarter ended Sept. 30, 2014.
The company reported adjusted earnings per share1 of $0.81,
up from $0.47 in the same period last year. Adjusted segment operating
profit1 was $914 million, up 45 percent from $632 million in
the year-ago period.
Net earnings for the quarter were $747 million, or $1.14 per share, and
segment operating profit1 was $1.07 billion.
“The team delivered very strong results in the third quarter and made
significant progress improving earnings and returns,” said ADM Chairman
and CEO Patricia Woertz. “Corn Processing managed their product mix to
serve good demand and optimize margins. Continued improvement in
international merchandising results supported the ongoing recovery of Ag
Services. And Oilseeds Processing again delivered solid results overall,
benefiting from good demand and its diverse footprint and product
portfolio.
“We also continued to advance our portfolio management. Since the
beginning of the third quarter, we signed a deal to sell our global
chocolate business; we reached an agreement to acquire Specialty
Commodities Incorporated; and we completed our acquisition of WILD
Flavors.
“In mid-October, we completed our previously announced buyback of 18
million shares, ahead of our year-end target. Given the strength of our
balance sheet and our strong cash flows, we expect to repurchase up to
10 million more shares by the end of 2014.”
Third Quarter 2014 Highlights1
-
Adjusted EPS of $0.81 excludes approximately $315 million in pretax
LIFO income; a $156 million pretax gain on the expansion of the
ADM-Marubeni joint venture; and a $102 million pretax loss on foreign
exchange hedging of the WILD Flavors equity purchase. As a result of
Euro depreciation, and net of these hedging losses, ADM’s purchase
price of the WILD Flavors equity was $114 million below the price at
signing.
-
Oilseeds Processing was in line with last year’s solid result, with
the impact from slower farmer selling in South America offset by
stronger global softseed, soybean and biodiesel results.
-
Corn Processing increased $176 million on improved margins in ethanol
and sweeteners.
-
Agricultural Services increased $57 million, with improvements in
international merchandising and transportation.
-
Trailing four-quarter-average adjusted ROIC was 8.5 percent, up 280
basis points year over year.
-
The net debt position of the company declined to $0.7 billion,
compared with $3.4 billion at the end of the same period last year,
which also resulted in a lower net interest expense.
1 Non-GAAP financial measures; see pages 4 and 9 for
explanations and reconciliations, including after-tax amounts.
Oilseeds Earnings Solid, with Lower South American Origination Offset
by Improved Global Oilseed Processing, Biodiesel and Cocoa
Oilseeds operating profit of $366 million was similar to the same period
one year earlier.
Crushing and origination operating profit declined $28 million to $214
million. Softseed results improved significantly, driven primarily by
European rapeseed margins and volumes. Soybean crushing results rose as
South American and European operations saw higher capacity utilization
and better margins. However, continued slow farmer selling limited
origination volumes and profits in South America.
Refining, packaging, biodiesel and other generated a profit of $96
million for the quarter, up $11 million, with improved results from
biodiesel in North America and Europe.
Cocoa and other earned $30 million in the quarter, up $20 million from
the year-ago period, reflecting the improved margin environment and
higher capacity utilization in the cocoa business.
Oilseeds results in Asia for the quarter were down $3 million from the
same period last year, principally reflecting weaker results from Wilmar
International Limited.
Corn Processing Results Improved Significantly on Strong Performances
Across the Segment
Corn processing operating profit nearly doubled from $180 million to
$356 million.
Sweeteners and starches results increased $63 million to $171 million on
steady volumes, with the expected lower average selling prices more than
offset by the benefit of lower net corn costs.
Bioproducts results increased $113 million to $185 million driven by
solid ethanol demand and margins through most of the quarter.
Agricultural Services Results Improve on International Merchandising
and Transportation
Agricultural Services operating profit was $159 million, up $57 million
from the year-ago period. This excludes a gain of $156 million related
to the expansion of the ADM-Marubeni joint venture, Pacificor, formerly
the Kalama Export Company. Last year's result included approximately $30
million related to intercompany insurance settlements.
Merchandising and handling earnings increased $60 million to $64
million, with significant improvements in international merchandising
results more than offsetting the impact of the normal seasonal decline
in U.S. export volumes until harvest began in September.
Transportation results increased $14 million to $35 million, with higher
barge freight volumes and rates.
Milling and other results declined $17 million to $60 million on lower
margins and volumes in the milling business.
Other Items of Note
This quarter’s effective tax rate was 28 percent, versus 32 percent in
the same period last year.
ADM incurred a $102 million pretax loss on foreign exchange hedging of
the WILD Flavors equity purchase. During the period from signing on July
5 to closing on Oct. 1, ADM progressively hedged the anticipated cash
outflow related to the equity purchase. The Euro depreciated
significantly, particularly in the month of September, resulting in
losses on those hedges. As a result of the overall depreciation of the
Euro, ADM's total purchase price of the equity, net of these hedging
losses, was $114 million lower than on July 5, when the purchase
agreement was signed.
Included in Corporate results was a $56 million loss related to updated
valuations of CIP’s portfolio of investments. ADM holds a 43.7 percent
equity interest in CIP, a joint venture that targets investments in
food, feed ingredients and bioproducts businesses.
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 Nov. 4, 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 14811848.
Replay of the call will be available from Nov. 5, 2014, to Nov. 11,
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 14811848. 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 the vital
needs of a growing world. Today, we’re one of the world’s largest
agricultural processors and food ingredient providers, with more than
33,000 employees serving customers in more than 140 countries. With a
global value chain that includes more than 470 crop procurement
locations, 285 ingredient manufacturing facilities, 40 innovation
centers and the world’s premier crop transportation network, we connect
the harvest to the home, making products for food, animal feed, chemical
and energy uses. Learn more at www.adm.com.
Financial Tables Follow
|
|
|
Segment Operating Profit and Corporate Results
|
|
A non-GAAP financial measure
|
|
(unaudited)
|
|
|
|
|
|
Quarter ended
|
|
|
|
|
Nine months ended
|
|
|
|
|
|
|
September 30
|
|
|
|
|
September 30
|
|
|
|
|
(In millions)
|
|
2014
|
|
2013
|
|
Change
|
|
2014
|
|
2013
|
|
Change
|
|
Oilseeds Processing Operating Profit
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Crushing and origination
|
|
$
|
214
|
|
|
$
|
242
|
|
|
$
|
(28
|
)
|
|
$
|
538
|
|
|
$
|
583
|
|
|
$
|
(45
|
)
|
|
Refining, packaging, biodiesel, and other
|
|
96
|
|
|
85
|
|
|
11
|
|
|
328
|
|
|
286
|
|
|
42
|
|
|
Cocoa and other (excluding timing effects)
|
|
30
|
|
|
10
|
|
|
20
|
|
|
80
|
|
|
(34
|
)
|
|
114
|
|
|
Cocoa hedge timing effects*
|
|
(4
|
)
|
|
(5
|
)
|
|
1
|
|
|
(29
|
)
|
|
11
|
|
|
(40
|
)
|
|
Asia
|
|
26
|
|
|
29
|
|
|
(3
|
)
|
|
106
|
|
|
149
|
|
|
(43
|
)
|
|
Total Oilseeds Processing
|
|
$
|
362
|
|
|
$
|
361
|
|
|
$
|
1
|
|
|
$
|
1,023
|
|
|
$
|
995
|
|
|
$
|
28
|
|
|
Corn Processing Operating Profit
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sweeteners and starches (excluding specified items)
|
|
$
|
171
|
|
|
$
|
108
|
|
|
$
|
63
|
|
|
$
|
414
|
|
|
$
|
339
|
|
|
$
|
75
|
|
|
Bioproducts (excluding specified items)
|
|
185
|
|
|
72
|
|
|
113
|
|
|
480
|
|
|
246
|
|
|
234
|
|
|
Corn hedge timing effects*
|
|
7
|
|
|
(11
|
)
|
|
18
|
|
|
12
|
|
|
(40
|
)
|
|
52
|
|
|
Asset impairment charges*
|
|
—
|
|
|
(10
|
)
|
|
10
|
|
|
—
|
|
|
(10
|
)
|
|
10
|
|
|
Total Corn Processing
|
|
$
|
363
|
|
|
$
|
159
|
|
|
$
|
204
|
|
|
$
|
906
|
|
|
$
|
535
|
|
|
$
|
371
|
|
|
Agricultural Services Operating Profit
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Merchandising and handling (excluding specified item)
|
|
$
|
64
|
|
|
$
|
4
|
|
|
$
|
60
|
|
|
$
|
248
|
|
|
$
|
104
|
|
|
$
|
144
|
|
|
Gain on expansion of JV*
|
|
156
|
|
|
|
—
|
|
|
156
|
|
|
156
|
|
|
—
|
|
|
156
|
|
|
Milling and other
|
|
60
|
|
|
77
|
|
|
(17
|
)
|
|
172
|
|
|
200
|
|
|
(28
|
)
|
|
Transportation
|
|
35
|
|
|
21
|
|
|
14
|
|
|
95
|
|
|
30
|
|
|
65
|
|
|
Total Agricultural Services
|
|
$
|
315
|
|
|
$
|
102
|
|
|
$
|
213
|
|
|
$
|
671
|
|
|
$
|
334
|
|
|
$
|
337
|
|
|
Other Operating Profit
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial
|
|
$
|
33
|
|
|
$
|
(16
|
)
|
|
$
|
49
|
|
|
$
|
52
|
|
|
$
|
19
|
|
|
$
|
33
|
|
|
Total Other
|
|
$
|
33
|
|
|
$
|
(16
|
)
|
|
$
|
49
|
|
|
$
|
52
|
|
|
$
|
19
|
|
|
$
|
33
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment Operating Profit
|
|
$
|
1,073
|
|
|
$
|
606
|
|
|
$
|
467
|
|
|
$
|
2,652
|
|
|
$
|
1,883
|
|
|
$
|
769
|
|
|
*Memo: Adjusted Segment Operating Profit
|
|
$
|
914
|
|
|
$
|
632
|
|
|
$
|
282
|
|
|
$
|
2,513
|
|
|
$
|
1,922
|
|
|
$
|
591
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate Results
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIFO credit (charge)
|
|
$
|
315
|
|
|
$
|
298
|
|
|
$
|
17
|
|
|
$
|
229
|
|
|
$
|
225
|
|
|
$
|
4
|
|
|
Interest expense - net
|
|
(72
|
)
|
|
(105
|
)
|
|
33
|
|
|
(243
|
)
|
|
(314
|
)
|
|
71
|
|
|
Unallocated corporate costs
|
|
(107
|
)
|
|
(97
|
)
|
|
(10
|
)
|
|
(296
|
)
|
|
(250
|
)
|
|
(46
|
)
|
|
Other charges
|
|
(102
|
)
|
|
26
|
|
|
(128
|
)
|
|
(133
|
)
|
|
(79
|
)
|
|
(54
|
)
|
|
Minority interest and other
|
|
(74
|
)
|
|
(19
|
)
|
|
(55
|
)
|
|
(75
|
)
|
|
(64
|
)
|
|
(11
|
)
|
|
Total Corporate
|
|
$
|
(40
|
)
|
|
$
|
103
|
|
|
$
|
(143
|
)
|
|
$
|
(518
|
)
|
|
$
|
(482
|
)
|
|
$
|
(36
|
)
|
|
Earnings Before Income Taxes
|
|
$
|
1,033
|
|
|
$
|
709
|
|
|
$
|
324
|
|
|
$
|
2,134
|
|
|
$
|
1,401
|
|
|
$
|
733
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
Nine months ended
|
|
|
|
September 30
|
|
September 30
|
|
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
|
|
(in millions, except per share amounts)
|
|
Revenues
|
|
$
|
18,117
|
|
|
$
|
21,393
|
|
|
$
|
60,307
|
|
|
$
|
65,661
|
|
|
Cost of products sold
|
|
16,647
|
|
|
20,237
|
|
|
56,990
|
|
|
62,942
|
|
|
Gross profit
|
|
1,470
|
|
|
1,156
|
|
|
3,317
|
|
|
2,719
|
|
|
Selling, general, and administrative expenses
|
|
451
|
|
|
429
|
|
|
1,270
|
|
|
1,317
|
|
|
Asset impairment, exit, and restructuring costs
|
|
—
|
|
|
23
|
|
|
31
|
|
|
23
|
|
|
Equity in (earnings) losses of unconsolidated affiliates
|
|
(21
|
)
|
|
(63
|
)
|
|
(231
|
)
|
|
(262
|
)
|
|
Interest income
|
|
(16
|
)
|
|
(12
|
)
|
|
(62
|
)
|
|
(68
|
)
|
|
Interest expense
|
|
79
|
|
|
105
|
|
|
251
|
|
|
318
|
|
|
Other (income) expense - net
|
|
(56
|
)
|
|
(35
|
)
|
|
(76
|
)
|
|
(10
|
)
|
|
Earnings before income taxes
|
|
1,033
|
|
|
709
|
|
|
2,134
|
|
|
1,401
|
|
|
Income taxes
|
|
(285
|
)
|
|
(228
|
)
|
|
(586
|
)
|
|
(424
|
)
|
|
Net earnings including noncontrolling interests
|
|
748
|
|
|
481
|
|
|
1,548
|
|
|
977
|
|
|
Less: Net earnings (losses) attributable to noncontrolling interests
|
|
1
|
|
|
5
|
|
|
1
|
|
|
9
|
|
|
Net earnings attributable to ADM
|
|
$
|
747
|
|
|
$
|
476
|
|
|
$
|
1,547
|
|
|
$
|
968
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per common share
|
|
$
|
1.14
|
|
|
$
|
0.72
|
|
|
$
|
2.35
|
|
|
$
|
1.46
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average number of shares outstanding
|
|
653
|
|
|
664
|
|
|
658
|
|
|
663
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other (income) expense - net consists of:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain on sales of assets/business (a)
|
|
$
|
(163
|
)
|
|
$
|
(6
|
)
|
|
$
|
(197
|
)
|
|
$
|
(27
|
)
|
|
Net loss (gain) on marketable securities transactions
|
|
—
|
|
|
(2
|
)
|
|
—
|
|
|
(7
|
)
|
|
(Gain) Loss on foreign exchange hedges
|
|
102
|
|
|
(26
|
)
|
|
102
|
|
|
25
|
|
|
Other - net
|
|
5
|
|
|
(1
|
)
|
|
19
|
|
|
(1
|
)
|
|
|
|
$
|
(56
|
)
|
|
$
|
(35
|
)
|
|
$
|
(76
|
)
|
|
$
|
(10
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) Current period gain includes disposals in Oilseeds (Q3 $1 million,
YTD $16 million), Corn (Q3 $1 million, YTD loss $1 million), Ag Services
(Q3 $161 million, YTD $181 million), and Corporate (Q3 $0, YTD $1
million). The current period gain in Ag Services is due principally to a
$156 million gain on the expansion of the ADM-Marubeni joint venture in
Q3 and other individually insignificant disposals. Prior period gain
includes individually insignificant disposals in Oilseeds (Q3 $1
million, YTD $9 million), Corn (Q3 $1 million, YTD $4 million), Ag
Services (Q3 $28 million, YTD $34 million), Other (Q3 $3 million, YTD $9
million) and a loss in Corporate (Q3 $27 million, YTD $29 million).
|
|
|
Summary of Financial Condition
|
|
(Unaudited)
|
|
|
|
|
|
September 30,
|
|
September 30,
|
|
|
|
2014
|
|
2013
|
|
|
|
(in millions)
|
|
NET INVESTMENT IN
|
|
|
|
|
|
|
Cash and cash equivalents (b)
|
|
$
|
4,539
|
|
|
$
|
3,252
|
|
Short-term marketable securities (b)
|
|
348
|
|
|
242
|
|
Operating working capital (a)
|
|
8,196
|
|
|
10,363
|
|
Property, plant, and equipment
|
|
9,995
|
|
|
10,125
|
|
Investments in and advances to affiliates
|
|
3,513
|
|
|
3,183
|
|
Long-term marketable securities
|
|
518
|
|
|
685
|
|
Other non-current assets
|
|
1,156
|
|
|
1,365
|
|
|
|
$
|
28,265
|
|
|
$
|
29,215
|
|
FINANCED BY
|
|
|
|
|
|
|
Short-term debt (b)
|
|
$
|
177
|
|
|
$
|
364
|
|
Long-term debt, including current maturities (b)
|
|
5,364
|
|
|
6,520
|
|
Deferred liabilities
|
|
2,463
|
|
|
2,765
|
|
Shareholders' equity
|
|
20,261
|
|
|
19,566
|
|
|
|
$
|
28,265
|
|
|
$
|
29,215
|
|
|
|
|
|
|
|
|
|
(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).
(b) Net debt is
calculated as short-term debt plus long-term debt, including current
maturities less cash and cash equivalents and short-term marketable
securities.
|
|
|
Summary of Cash Flows
|
|
(unaudited)
|
|
|
|
|
|
Nine months ended
|
|
|
|
September 30
|
|
|
|
2014
|
|
2013
|
|
|
|
(in millions)
|
|
Operating Activities
|
|
|
|
|
|
|
|
Net earnings
|
|
$
|
1,548
|
|
|
$
|
977
|
|
|
Depreciation and amortization
|
|
646
|
|
|
681
|
|
|
Other - net
|
|
(247
|
)
|
|
(212
|
)
|
|
Changes in operating assets and liabilities
|
|
2,477
|
|
|
3,423
|
|
|
Total Operating Activities
|
|
4,424
|
|
|
4,869
|
|
|
|
|
|
|
|
|
|
|
Investing Activities
|
|
|
|
|
|
|
|
Purchases of property, plant and equipment
|
|
(605
|
)
|
|
(659
|
)
|
|
Net assets of businesses acquired
|
|
(3
|
)
|
|
(35
|
)
|
|
Marketable securities - net
|
|
66
|
|
|
296
|
|
|
Other investing activities
|
|
122
|
|
|
224
|
|
|
Total Investing Activities
|
|
(420
|
)
|
|
(174
|
)
|
|
|
|
|
|
|
|
|
|
Financing Activities
|
|
|
|
|
|
|
|
Long-term debt borrowings
|
|
1
|
|
|
23
|
|
|
Long-term debt payments
|
|
(1,167
|
)
|
|
(265
|
)
|
|
Net borrowings (payments) under lines of credit
|
|
(178
|
)
|
|
(2,489
|
)
|
|
Purchases of treasury stock
|
|
(702
|
)
|
|
(95
|
)
|
|
Cash dividends
|
|
(470
|
)
|
|
(376
|
)
|
|
Acquisition of noncontrolling interest
|
|
(157
|
)
|
|
—
|
|
|
Other
|
|
87
|
|
|
45
|
|
|
Total Financing Activities
|
|
(2,586
|
)
|
|
(3,157
|
)
|
|
|
|
|
|
|
|
|
|
Increase (decrease) in cash and cash equivalents
|
|
1,418
|
|
|
1,538
|
|
|
Cash and cash equivalents - beginning of period
|
|
3,121
|
|
|
1,714
|
|
|
Cash and cash equivalents - end of period
|
|
$
|
4,539
|
|
|
$
|
3,252
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment Operating Analysis
|
|
(unaudited)
|
|
|
|
|
|
Quarter ended
|
|
Nine months ended
|
|
|
|
September 30
|
|
September 30
|
|
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
|
|
(in '000s metric tons)
|
|
Processed volumes
|
|
|
|
|
|
|
|
|
|
|
|
|
Oilseeds
|
|
7,235
|
|
|
7,191
|
|
|
23,709
|
|
|
22,928
|
|
Corn
|
|
6,039
|
|
|
5,794
|
|
|
18,124
|
|
|
17,314
|
|
Milling and Cocoa
|
|
1,904
|
|
|
1,878
|
|
|
5,465
|
|
|
5,364
|
|
Total processed volumes
|
|
15,178
|
|
|
14,863
|
|
|
47,298
|
|
|
45,606
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter ended
|
|
Nine months ended
|
|
|
|
September 30
|
|
September 30
|
|
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
|
|
(in millions)
|
|
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
Oilseeds Processing
|
|
$
|
7,854
|
|
|
$
|
9,216
|
|
|
$
|
24,498
|
|
|
$
|
26,695
|
|
Corn Processing
|
|
2,896
|
|
|
3,393
|
|
|
8,797
|
|
|
10,084
|
|
Agricultural Services
|
|
7,284
|
|
|
8,751
|
|
|
26,771
|
|
|
28,781
|
|
Other
|
|
83
|
|
|
33
|
|
|
241
|
|
|
101
|
|
Total revenues
|
|
$
|
18,117
|
|
|
$
|
21,393
|
|
|
$
|
60,307
|
|
|
$
|
65,661
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Earnings Per Share
|
|
A non-GAAP financial measure
|
|
(unaudited)
|
|
|
|
|
|
Quarter ended
|
|
Nine months ended
|
|
|
|
September 30
|
|
September 30
|
|
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
Reported EPS (fully diluted)
|
|
$
|
1.14
|
|
|
$
|
0.72
|
|
|
$
|
2.35
|
|
|
$
|
1.46
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIFO (credit) charge (a)
|
|
(0.30
|
)
|
|
(0.28
|
)
|
|
(0.22
|
)
|
|
(0.21
|
)
|
|
Gain on sale of asset (b)
|
|
(0.15
|
)
|
|
—
|
|
|
(0.15
|
)
|
|
—
|
|
|
Wild-related charges (c)
|
|
0.10
|
|
|
—
|
|
|
0.10
|
|
|
—
|
|
|
Restructuring/relocation charges (d)
|
|
—
|
|
|
—
|
|
|
0.03
|
|
|
—
|
|
|
FCPA charges (e)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.06
|
|
|
Asset impairment charges (f)
|
|
—
|
|
|
0.02
|
|
|
—
|
|
|
0.02
|
|
|
GrainCorp-related charges (gains) (g)
|
|
—
|
|
|
(0.02
|
)
|
|
—
|
|
|
0.03
|
|
|
Effective tax rate adjustments (h)
|
|
0.02
|
|
|
0.03
|
|
|
—
|
|
|
0.02
|
|
|
Sub-total adjustments
|
|
(0.33
|
)
|
|
(0.25
|
)
|
|
(0.24
|
)
|
|
(0.08
|
)
|
|
Adjusted earnings per share (non-GAAP)
|
|
$
|
0.81
|
|
|
$
|
0.47
|
|
|
$
|
2.11
|
|
|
$
|
1.38
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Memo: Timing effects (gain) loss
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corn (i)
|
|
—
|
|
|
0.01
|
|
|
(0.01
|
)
|
|
0.04
|
|
|
Cocoa (j)
|
|
—
|
|
|
0.01
|
|
|
0.03
|
|
|
(0.01
|
)
|
|
Sub-total timing effects
|
|
—
|
|
|
0.02
|
|
|
0.02
|
|
|
0.03
|
|
|
Adjusted EPS excluding timing effects (non-GAAP)
|
|
$
|
0.81
|
|
|
$
|
0.49
|
|
|
$
|
2.13
|
|
|
$
|
1.41
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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)
|
|
Gain of $156 million, pretax, upon the Company's effective dilution
in the Pacificor (formerly Kalama Export Company) joint venture,
resulting from the contribution of additional assets by another
member in exchange for new equity units, tax effected using the
Company's U.S. effective income tax rate.
|
|
(c)
|
|
The loss on Euro foreign currency derivative contracts to
economically hedge the anticipated Wild Flavors acquisition of $102
million, pretax, tax effected using the Company's U.S. effective
income tax rate.
|
|
(d)
|
|
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.
|
|
(e)
|
|
Charges, net of estimated tax, related to settlements with
government agencies pertaining to potential violations of
anti-corruption practices.
|
|
(f)
|
|
The asset impairment charges related to certain fixed assets and
investments of $23 million, pretax, tax effected using the Company's
U.S. effective income tax rate.
|
|
(g)
|
|
Certain charges (gains) related to the Company's interest in
GrainCorp, tax effected using the Company's U.S. effective income
tax rate.
|
|
(h)
|
|
Impact to EPS due to the change in annual effective tax rate.
|
|
(i)
|
|
Corn timing effects for corn hedge ineffectiveness losses tax
effected using the Company's U.S. effective income tax rate.
|
|
(j)
|
|
Cocoa timing effects tax effected using the Company's effective
income 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
Christina Hahn
217-451-8286