Net earnings of $701 million, or $1.08 per share
Company announces 17 percent increase in quarterly dividend
CHICAGO--(BUSINESS WIRE)--Archer Daniels Midland Company (NYSE: ADM) today reported financial
results for the quarter ended Dec. 31, 2014.
The company reported adjusted earnings per share1 of $1.00,
up from $0.95 in the same period last year. Adjusted segment operating
profit1 was $1.13 billion, up 8 percent from $1.04 billion in
the year-ago period. For the calendar year, adjusted earnings per share
of $3.20 were up 37 percent versus the prior year.
Net earnings for the quarter were $701 million, or $1.08 per share, and
segment operating profit1 was $1.26 billion.
“The Agricultural Services team executed well to capitalize on strong
conditions, while international merchandising continued to show
year-over-year recovery,” said ADM Chief Executive Officer Juan Luciano.
“In North America and Europe, Oilseeds showed strong year-over-year
growth, offset by weaker results in South America. Looking ahead in
North America and Europe, solid crush margins and export opportunities
have carried into the first quarter. Market conditions in South America
Oilseeds should improve with the large harvest, and we are working
toward higher returns throughout 2015 in this key geography.
“While U.S. ethanol demand was seasonally strong, boosted by the
domestic response to lower gasoline prices, high industry production has
built excess inventories. Margins in this industry should remain
challenged until supplies are better aligned with demand. We will
continue our work to optimize cost and product mix in the Corn business
to maximize profitability.”
Fourth Quarter 2014 Highlights1
-
Adjusted EPS of $1.00 excludes approximately $0.14 of asset disposal
gains, $0.09 in benefits related to biodiesel tax credits attributable
to the first three quarters of the year, $0.09 in non-cash pension
settlement charges, and other net charges totaling $0.06.
-
Oilseeds Processing decreased $107 million from an exceptional
comparator, with record profits from North American soybean crushing
and strong results from soybean crushing in Europe more than offset by
weakness in South American results.
-
Corn Processing decreased $31 million with rising net corn costs
through the quarter partially offset by strong ethanol results.
-
Agricultural Services increased $234 million amid strong margins,
record volumes and good execution in the U.S., and improved
international merchandising.
-
Trailing four-quarter-average adjusted ROIC was 9.0 percent, up 240
basis points year over year and 260 basis points above annual WACC of
6.4 percent.
-
During the fourth quarter, the company repurchased 9.4 million shares.
During 2014, ADM returned more than $1.8 billion to shareholders
through dividends and share repurchases.
1 Non-GAAP financial measures; see pages 5 and 10 for
explanations and reconciliations, including after-tax amounts.
Dividend Declaration and 2015 Capital Plan
-
ADM’s Board of Directors has declared a quarterly cash dividend of
28.0 cents per share on the company’s common stock, an increase of
approximately 17 percent from the prior quarterly rate, resulting in
estimated annual dividend payments of $0.7 billion in 2015.
-
The dividend is payable on March 10, 2015, to shareholders of record
at the close of business on Feb. 17, 2015. As of Dec. 31, 2014, there
were 636,704,061 shares of ADM common stock outstanding.
-
The company has targeted $1.5 to $2.0 billion of share repurchases in
2015, subject to strategic capital requirements.
-
The company expects 2015 capital expenditures of between $1.1 and $1.3
billion.
Oilseeds Earnings Solid with Strong Soybean Crushing Results in North
America and Europe
After adjustments, Oilseeds operating profit of $395 million decreased
$107 million from excellent year-ago results.
Crushing and origination operating profit decreased $46 million to $206
million. Higher capacity utilization and improved margins helped drive
record soybean crushing results in North America and very strong
European crushing results. Results in South America were significantly
lower, due to reduced crush margins, continued slow farmer selling, and
weaker fertilizer results.
Refining, packaging, biodiesel and other generated a profit of $99
million for the quarter, down $69 million. Overcapacity pressured
margins in European biodiesel during the quarter, while year-ago North
American biodiesel results benefited from a surge in demand ahead of the
expiration of the U.S. blender's credit.
Cocoa and other earned $29 million in the quarter, up $15 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 generally in line with the
prior period, with the recovery of Wilmar results from earlier in the
year.
Corn Processing Delivered Mixed Results
Corn processing operating profit decreased from $315 million to $284
million, when adjusting for the net impacts of asset impairment charges
and hedge timing effects.
Sweeteners and starches results declined $114 million from an
exceptionally strong period last year, to $67 million on weaker margins
due to expected lower average selling prices and net corn costs that
rose through the quarter.
Bioproducts results increased from $134 million to $217 million, driven
by favorable ethanol results. In addition, animal nutrition results
improved on better margins and solid demand.
Agricultural Services Results Improve Significantly on U.S. Grain
Exports, International Merchandising, Transportation
Agricultural Services operating profit was $435 million, up $234 million
from the year-ago period, after adjusting for asset-impairment charges.
Merchandising and handling earnings improved $179 million from a weak
year-ago quarter, to $263 million, supported by strong margins,
effective handling of record volumes from the large U.S. harvest,
ability to maximize storage, and strong execution. In addition,
international merchandising continued to recover, with good results from
the Black Sea region.
Transportation results increased $45 million to $92 million on strong
northbound and southbound barge freight demand and favorable operating
conditions.
Milling and other results improved $10 million to $80 million, mostly
driven by improved blending and basis gains in the milling business.
Other Items of Note
For 2014, the effective tax rate was 28 percent. For the fourth quarter,
the effective tax rate was 29 percent, versus 39 percent in the same
period last year.
During the fourth quarter, ADM closed on the acquisitions of WILD
Flavors GmbH and Specialty Commodities, Inc. For fourth-quarter
reporting, these businesses’ results are reflected in Other Operating
Profits. The results were negatively impacted by transaction closing and
restructuring costs of $33 million as well as purchase-price
amortization charges. Starting with the first quarter of 2015, ADM has
created a new business segment—WILD Flavors and Specialty
Ingredients—which will include the results of these two businesses.
As additional information to help clarify underlying business
performance, the tables on page 10 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 Feb. 3, 2015, 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 62552494.
Replay of the call will be available from Feb. 4, 2015, to Feb. 10,
2015. 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 62552494. 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 460 crop procurement
locations, 300 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
December 31
|
|
|
|
|
Year ended
December 31
|
|
|
|
|
(In millions)
|
2014
|
|
2013
|
|
Change
|
|
2014
|
|
2013
|
|
Change
|
|
Oilseeds Processing Operating Profit
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Crushing and origination (excl. specified items)
|
$
|
206
|
|
|
$
|
252
|
|
|
$
|
(46
|
)
|
|
$
|
744
|
|
|
$
|
835
|
|
|
$
|
(91
|
)
|
|
Refining, packaging, biodiesel, and other (excl. specified item)
|
99
|
|
|
168
|
|
|
(69
|
)
|
|
479
|
|
|
454
|
|
|
25
|
|
|
Cocoa and other (excl. timing effects)
|
29
|
|
|
14
|
|
|
15
|
|
|
109
|
|
|
(20
|
)
|
|
129
|
|
|
Gain on sale of business*
|
126
|
|
|
—
|
|
|
126
|
|
|
126
|
|
|
—
|
|
|
126
|
|
|
Asset impairment charges*
|
(3
|
)
|
|
—
|
|
|
(3
|
)
|
|
(3
|
)
|
|
—
|
|
|
(3
|
)
|
|
Biodiesel credits*
|
52
|
|
|
—
|
|
|
52
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Cocoa hedge timing effects*
|
12
|
|
|
(24
|
)
|
|
36
|
|
|
(17
|
)
|
|
(13
|
)
|
|
(4
|
)
|
|
Asia
|
61
|
|
|
68
|
|
|
(7
|
)
|
|
167
|
|
|
217
|
|
|
(50
|
)
|
|
Total Oilseeds Processing
|
$
|
582
|
|
|
$
|
478
|
|
|
$
|
104
|
|
|
$
|
1,605
|
|
|
$
|
1,473
|
|
|
$
|
132
|
|
|
Corn Processing Operating Profit
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sweeteners and starches (excl. specified items)
|
$
|
67
|
|
|
$
|
181
|
|
|
$
|
(114
|
)
|
|
$
|
481
|
|
|
$
|
520
|
|
|
$
|
(39
|
)
|
|
Bioproducts (excl. specified items)
|
217
|
|
|
134
|
|
|
83
|
|
|
697
|
|
|
380
|
|
|
317
|
|
|
Corn hedge timing effects*
|
13
|
|
|
25
|
|
|
(12
|
)
|
|
25
|
|
|
(15
|
)
|
|
40
|
|
|
Asset impairment charges*
|
(15
|
)
|
|
(61
|
)
|
|
46
|
|
|
(15
|
)
|
|
(71
|
)
|
|
56
|
|
|
Total Corn Processing
|
$
|
282
|
|
|
$
|
279
|
|
|
$
|
3
|
|
|
$
|
1,188
|
|
|
$
|
814
|
|
|
$
|
374
|
|
|
Agricultural Services Operating Profit
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Merchandising and handling (excl. specified items)
|
$
|
263
|
|
|
$
|
84
|
|
|
$
|
179
|
|
|
$
|
511
|
|
|
$
|
188
|
|
|
$
|
323
|
|
|
Milling and other (excl. specified item)
|
80
|
|
|
70
|
|
|
10
|
|
|
252
|
|
|
270
|
|
|
(18
|
)
|
|
Asset impairment charges*
|
(17
|
)
|
|
—
|
|
|
(17
|
)
|
|
(17
|
)
|
|
—
|
|
|
(17
|
)
|
|
Gain on expansion of JV*
|
—
|
|
|
—
|
|
|
—
|
|
|
156
|
|
|
—
|
|
|
156
|
|
|
GrainCorp-related specified items*
|
—
|
|
|
(155
|
)
|
|
155
|
|
|
—
|
|
|
(155
|
)
|
|
155
|
|
|
Transportation
|
92
|
|
|
47
|
|
|
45
|
|
|
187
|
|
|
77
|
|
|
110
|
|
|
Total Agricultural Services
|
$
|
418
|
|
|
$
|
46
|
|
|
$
|
372
|
|
|
$
|
1,089
|
|
|
$
|
380
|
|
|
$
|
709
|
|
|
Other Operating Profit
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Processing (excl. specified item)
|
$
|
(13
|
)
|
|
$
|
—
|
|
|
$
|
(13
|
)
|
|
$
|
(13
|
)
|
|
$
|
—
|
|
|
$
|
(13
|
)
|
|
Restructuring charges*
|
(33
|
)
|
|
—
|
|
|
(33
|
)
|
|
(33
|
)
|
|
—
|
|
|
(33
|
)
|
|
Financial
|
27
|
|
|
22
|
|
|
5
|
|
|
79
|
|
|
41
|
|
|
38
|
|
|
Total Other
|
$
|
(19
|
)
|
|
$
|
22
|
|
|
$
|
(41
|
)
|
|
$
|
33
|
|
|
$
|
41
|
|
|
$
|
(8
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment Operating Profit
|
$
|
1,263
|
|
|
$
|
825
|
|
|
$
|
438
|
|
|
$
|
3,915
|
|
|
$
|
2,708
|
|
|
$
|
1,207
|
|
|
*Memo: Adjusted Segment Operating Profit
|
$
|
1,128
|
|
|
$
|
1,040
|
|
|
$
|
88
|
|
|
$
|
3,693
|
|
|
$
|
2,962
|
|
|
$
|
731
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate Results
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIFO credit (charge)
|
$
|
16
|
|
|
$
|
—
|
|
|
$
|
16
|
|
|
$
|
245
|
|
|
$
|
225
|
|
|
$
|
20
|
|
|
Interest expense - net
|
(75
|
)
|
|
(94
|
)
|
|
19
|
|
|
(318
|
)
|
|
(408
|
)
|
|
90
|
|
|
Unallocated corporate costs
|
(118
|
)
|
|
(92
|
)
|
|
(26
|
)
|
|
(414
|
)
|
|
(331
|
)
|
|
(83
|
)
|
|
Other charges
|
(95
|
)
|
|
(57
|
)
|
|
(38
|
)
|
|
(228
|
)
|
|
(147
|
)
|
|
(81
|
)
|
|
Minority interest and other
|
5
|
|
|
41
|
|
|
(36
|
)
|
|
(70
|
)
|
|
(23
|
)
|
|
(47
|
)
|
|
Total Corporate
|
$
|
(267
|
)
|
|
$
|
(202
|
)
|
|
$
|
(65
|
)
|
|
$
|
(785
|
)
|
|
$
|
(684
|
)
|
|
$
|
(101
|
)
|
|
Earnings Before Income Taxes
|
$
|
996
|
|
|
$
|
623
|
|
|
$
|
373
|
|
|
$
|
3,130
|
|
|
$
|
2,024
|
|
|
$
|
1,106
|
|
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
December 31
|
|
Year ended
December 31
|
|
|
|
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
|
|
|
|
(in millions, except per share amounts)
|
|
Revenues
|
|
|
|
$
|
20,894
|
|
|
$
|
24,143
|
|
|
$
|
81,201
|
|
|
$
|
89,804
|
|
|
Cost of products sold
|
|
|
|
19,443
|
|
|
22,973
|
|
|
76,433
|
|
|
85,915
|
|
|
Gross profit
|
|
|
|
1,451
|
|
|
1,170
|
|
|
4,768
|
|
|
3,889
|
|
|
Selling, general, and administrative expenses
|
|
|
|
637
|
|
|
442
|
|
|
1,907
|
|
|
1,759
|
|
|
Asset impairment, exit, and restructuring costs
|
|
|
|
74
|
|
|
236
|
|
|
105
|
|
|
259
|
|
|
Equity in (earnings) losses of unconsolidated affiliates
|
|
|
|
(141
|
)
|
|
(149
|
)
|
|
(372
|
)
|
|
(411
|
)
|
|
Interest income
|
|
|
|
(30
|
)
|
|
(34
|
)
|
|
(92
|
)
|
|
(102
|
)
|
|
Interest expense
|
|
|
|
86
|
|
|
95
|
|
|
337
|
|
|
413
|
|
|
Other (income) expense - net
|
|
|
|
(171
|
)
|
|
(43
|
)
|
|
(247
|
)
|
|
(53
|
)
|
|
Earnings before income taxes
|
|
|
|
996
|
|
|
623
|
|
|
3,130
|
|
|
2,024
|
|
|
Income taxes
|
|
|
|
(291
|
)
|
|
(246
|
)
|
|
(877
|
)
|
|
(670
|
)
|
|
Net earnings including noncontrolling interests
|
|
|
|
705
|
|
|
377
|
|
|
2,253
|
|
|
1,354
|
|
|
Less: Net earnings (losses) attributable to noncontrolling interests
|
|
|
|
4
|
|
|
3
|
|
|
5
|
|
|
12
|
|
|
Net earnings attributable to ADM
|
|
|
|
$
|
701
|
|
|
$
|
374
|
|
|
$
|
2,248
|
|
|
$
|
1,342
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per common share
|
|
|
|
$
|
1.08
|
|
|
$
|
0.56
|
|
|
$
|
3.43
|
|
|
$
|
2.02
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average number of shares outstanding
|
|
|
|
649
|
|
|
663
|
|
|
656
|
|
|
663
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other (income) expense - net consists of:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain on sale of assets/business (a)
|
|
|
|
$
|
(154
|
)
|
|
$
|
(14
|
)
|
|
$
|
(351
|
)
|
|
$
|
(41
|
)
|
|
Net loss (gain) on marketable securities transactions
|
|
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
(8
|
)
|
|
(Gain) Loss on foreign exchange hedges
|
|
|
|
—
|
|
|
15
|
|
|
102
|
|
|
40
|
|
|
Other - net
|
|
|
|
(17
|
)
|
|
(43
|
)
|
|
2
|
|
|
(44
|
)
|
|
|
|
|
|
$
|
(171
|
)
|
|
$
|
(43
|
)
|
|
$
|
(247
|
)
|
|
$
|
(53
|
)
|
|
(a)
|
|
Current period gain includes disposals in Oilseeds (Q4 $134 million,
YTD $150 million), Corn (Q4 $7 million, YTD $6 million), Ag Services
(Q4 $4 million, YTD $185 million), and Corporate (Q4 $9 million, YTD
$10 million). The current period gain in Oilseeds is due principally
to a $126 million gain on the sale of the fertilizer business. Prior
period gain includes individually insignificant disposals in
Oilseeds (Q4 $8 million, YTD $17 million), Corn (Q4 $0 million, YTD
$4 million), Ag Services (Q4 $5 million, YTD $39 million), Other (Q4
$1 million, YTD $10 million) and a loss in Corporate (Q4 $0 million,
YTD $29 million).
|
|
|
|
|
|
Summary of Financial Condition
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31,
2014
|
|
December 31,
2013
|
|
|
|
|
|
(in millions)
|
|
NET INVESTMENT IN
|
|
|
|
|
|
|
|
|
Cash and cash equivalents (b)
|
|
|
|
$
|
1,099
|
|
|
$
|
3,121
|
|
Short-term marketable securities (b)
|
|
|
|
515
|
|
|
433
|
|
Operating working capital (a)
|
|
|
|
7,771
|
|
|
10,841
|
|
Property, plant, and equipment
|
|
|
|
9,960
|
|
|
10,137
|
|
Investments in and advances to affiliates
|
|
|
|
3,892
|
|
|
3,340
|
|
Long-term marketable securities
|
|
|
|
485
|
|
|
508
|
|
Other non-current assets
|
|
|
|
3,594
|
|
|
1,237
|
|
Net assets held for sale
|
|
|
|
$
|
1,173
|
|
|
$
|
—
|
|
|
|
|
|
$
|
28,489
|
|
|
$
|
29,617
|
|
FINANCED BY
|
|
|
|
|
|
|
|
|
Short-term debt (b)
|
|
|
|
$
|
108
|
|
|
$
|
358
|
|
Long-term debt, including current maturities (b)
|
|
|
|
5,582
|
|
|
6,512
|
|
Deferred liabilities
|
|
|
|
3,169
|
|
|
2,553
|
|
Shareholders' equity
|
|
|
|
19,630
|
|
|
20,194
|
|
|
|
|
|
$
|
28,489
|
|
|
$
|
29,617
|
|
(a)
|
|
Current assets (excluding cash and cash equivalents, short-term
marketable securities, and current assets held for sale) less
current liabilities (excluding short-term debt, current maturities
of long-term debt, and current liabilities held for sale).
|
|
(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)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year ended
December 31
|
|
|
|
|
|
|
2014
|
|
|
2013
|
|
|
|
|
|
|
(in millions)
|
|
Operating Activities
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings
|
|
|
|
|
$
|
2,253
|
|
|
|
$
|
1,354
|
|
|
Depreciation and amortization
|
|
|
|
|
|
894
|
|
|
|
|
909
|
|
|
Asset impairment charges
|
|
|
|
|
|
41
|
|
|
|
|
259
|
|
|
Gain on sale of assets/business
|
|
|
|
|
|
(351
|
)
|
|
|
|
(41
|
)
|
|
Other - net
|
|
|
|
|
|
(135
|
)
|
|
|
|
(188
|
)
|
|
Changes in operating assets and liabilities
|
|
|
|
|
|
2,341
|
|
|
|
|
2,933
|
|
|
Total Operating Activities
|
|
|
|
|
|
5,043
|
|
|
|
|
5,226
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investing Activities
|
|
|
|
|
|
|
|
|
|
|
|
Purchases of property, plant and equipment
|
|
|
|
|
|
(894
|
)
|
|
|
|
(913
|
)
|
|
Net assets of businesses acquired
|
|
|
|
|
|
(2,717
|
)
|
|
|
|
(44
|
)
|
|
Proceeds from sale of business/assets
|
|
|
|
|
|
414
|
|
|
|
|
86
|
|
|
Marketable securities - net
|
|
|
|
|
|
(105
|
)
|
|
|
|
104
|
|
|
Other investing activities
|
|
|
|
|
|
(64
|
)
|
|
|
|
190
|
|
|
Total Investing Activities
|
|
|
|
|
|
(3,366
|
)
|
|
|
|
(577
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financing Activities
|
|
|
|
|
|
|
|
|
|
|
|
Long-term debt borrowings
|
|
|
|
|
|
1
|
|
|
|
|
23
|
|
|
Long-term debt payments
|
|
|
|
|
|
(1,373
|
)
|
|
|
|
(275
|
)
|
|
Net borrowings (payments) under lines of credit
|
|
|
|
|
|
(458
|
)
|
|
|
|
(2,461
|
)
|
|
Purchases of treasury stock
|
|
|
|
|
|
(1,183
|
)
|
|
|
|
(101
|
)
|
|
Cash dividends
|
|
|
|
|
|
(624
|
)
|
|
|
|
(501
|
)
|
|
Acquisition of noncontrolling interest
|
|
|
|
|
|
(157
|
)
|
|
|
|
—
|
|
|
Other
|
|
|
|
|
|
95
|
|
|
|
|
73
|
|
|
Total Financing Activities
|
|
|
|
|
|
(3,699
|
)
|
|
|
|
(3,242
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Increase (decrease) in cash and cash equivalents
|
|
|
|
|
|
(2,022
|
)
|
|
|
|
1,407
|
|
|
Cash and cash equivalents - beginning of period
|
|
|
|
|
|
3,121
|
|
|
|
|
1,714
|
|
|
Cash and cash equivalents - end of period
|
|
|
|
|
$
|
1,099
|
|
|
|
$
|
3,121
|
|
|
|
|
|
|
|
|
Segment Operating Analysis
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter ended
December 31
|
|
Year ended
December 31
|
|
|
|
|
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
|
|
|
|
|
(in '000s metric tons)
|
|
|
Processed volumes
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Oilseeds
|
|
|
|
|
8,499
|
|
|
8,840
|
|
|
32,208
|
|
|
31,768
|
|
|
Corn
|
|
|
|
|
5,544
|
|
|
6,374
|
|
|
23,668
|
|
|
23,688
|
|
|
Milling and Cocoa
|
|
|
|
|
1,853
|
|
|
1,862
|
|
|
7,318
|
|
|
7,226
|
|
|
Total processed volumes
|
|
|
|
|
15,896
|
|
|
17,076
|
|
|
63,194
|
|
|
62,682
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter ended
December 31
|
|
Year ended
December 31
|
|
|
|
|
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
|
|
|
|
|
(in millions)
|
|
|
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Oilseeds Processing
|
|
|
|
|
$
|
7,048
|
|
|
$
|
8,188
|
|
|
$
|
31,546
|
|
|
$
|
34,883
|
|
|
Corn Processing
|
|
|
|
|
2,889
|
|
|
3,055
|
|
|
11,686
|
|
|
13,139
|
|
|
Agricultural Services
|
|
|
|
|
10,556
|
|
|
12,699
|
|
|
37,327
|
|
|
41,480
|
|
|
Other
|
|
|
|
|
401
|
|
|
201
|
|
|
642
|
|
|
302
|
|
|
Total revenues
|
|
|
|
|
$
|
20,894
|
|
|
$
|
24,143
|
|
|
$
|
81,201
|
|
|
$
|
89,804
|
|
|
|
|
|
|
Adjusted Earnings Per Share
A non-GAAP financial measure
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter ended
December 31
|
|
Year ended
December 31
|
|
|
|
|
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
Reported EPS (fully diluted)
|
|
|
|
|
$
|
1.08
|
|
|
$
|
0.56
|
|
|
$
|
3.43
|
|
|
$
|
2.02
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIFO (credit) charge (a)
|
|
|
|
|
(0.01
|
)
|
|
—
|
|
|
(0.23
|
)
|
|
(0.21
|
)
|
|
Gain on sale of assets (b)
|
|
|
|
|
(0.14
|
)
|
|
—
|
|
|
(0.29
|
)
|
|
—
|
|
|
Wild-related charges (c)
|
|
|
|
|
0.03
|
|
|
—
|
|
|
0.13
|
|
|
—
|
|
|
Pension settlement (d)
|
|
|
|
|
0.09
|
|
|
—
|
|
|
0.09
|
|
|
—
|
|
|
Restructuring/relocation charges (e)
|
|
|
|
|
—
|
|
|
0.01
|
|
|
0.03
|
|
|
0.01
|
|
|
FCPA charges (f)
|
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.06
|
|
|
Asset impairment charges (g)
|
|
|
|
|
0.04
|
|
|
0.11
|
|
|
0.04
|
|
|
0.13
|
|
|
GrainCorp-related charges (h)
|
|
|
|
|
—
|
|
|
0.25
|
|
|
—
|
|
|
0.28
|
|
|
U.S. biodiesel credits (i)
|
|
|
|
|
(0.09
|
)
|
|
(0.13
|
)
|
|
—
|
|
|
(0.08
|
)
|
|
Valuation allowance (j)
|
|
|
|
|
—
|
|
|
0.12
|
|
|
—
|
|
|
0.12
|
|
|
Effective tax rate adjustment (k)
|
|
|
|
|
—
|
|
|
0.03
|
|
|
—
|
|
|
—
|
|
|
Sub-total adjustments
|
|
|
|
|
(0.08
|
)
|
|
0.39
|
|
|
(0.23
|
)
|
|
0.31
|
|
|
Adjusted earnings per share (non-GAAP)
|
|
|
|
|
$
|
1.00
|
|
|
$
|
0.95
|
|
|
$
|
3.20
|
|
|
$
|
2.33
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Memo: Timing effects (gain) loss
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corn (l)
|
|
|
|
|
(0.01
|
)
|
|
(0.03
|
)
|
|
(0.02
|
)
|
|
0.01
|
|
|
Cocoa (m)
|
|
|
|
|
(0.01
|
)
|
|
0.02
|
|
|
0.02
|
|
|
0.01
|
|
|
Sub-total timing effects
|
|
|
|
|
(0.02
|
)
|
|
(0.01
|
)
|
|
—
|
|
|
0.02
|
|
|
Adjusted EPS excluding timing effects (non-GAAP)
|
|
|
|
|
$
|
0.98
|
|
|
$
|
0.94
|
|
|
$
|
3.20
|
|
|
$
|
2.35
|
|
|
|
(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)
|
|
Current period gain of $135 million, pretax, primarily related to
the gain on sale of the fertilizer business, tax effected using the
applicable tax rate. Year-to-date gain also includes $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)
|
|
Current period charges of $33 million, pretax, related to
restructuring charges, tax effected using the Company's U.S.
effective tax rate. Year-to-date charges also include 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)
|
|
Expense of $98 million, pretax, related to pension settlements, tax
effected using the Company's U.S. effective income tax rate.
|
|
|
(e)
|
|
Year-to-date charges related to the 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. Prior period charges
related to restructuring and exit costs, tax effected using
applicable tax rates.
|
|
|
(f)
|
|
Charges, net of estimated tax, related to settlements with
government agencies pertaining to potential violations of
anti-corruption practices.
|
|
|
(g)
|
|
Current period charges of $41 million, pretax, related to certain
fixed assets and investment, tax effected using the Company's U.S.
effective income tax rate. Prior period charges related to certain
fixed assets and investments, tax effected using the applicable U.S.
and Mexican tax rates.
|
|
|
(h)
|
|
Certain charges related to the Company's interest in GrainCorp, tax
effected using the Company's U.S. effective income tax rate.
|
|
|
(i)
|
|
Current period credits of $52 million, pretax, ($61 million after
tax) related to U.S. biodiesel blending credits attributable to
prior periods. Prior period credits related to income tax benefit
recognized in the fourth quarter ended December 31, 2013 on U.S.
biodiesel blending credits attributable to prior periods.
|
|
|
(j)
|
|
Valuation allowance on certain deferred tax assets relating to net
operating loss carryforwards of certain international subsidiaries.
|
|
|
(k)
|
|
Impact to EPS due to the change in annual effective tax rate.
|
|
|
(l)
|
|
Corn timing effects for corn hedge ineffectiveness losses tax
effected using the Company's U.S. effective income tax rate.
|
|
|
(m)
|
|
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 described 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
312-634-8484
or
Investor Relations
Christina Hahn
217-451-8286