- Net earnings of $339 million
- Adjusted EPS up 43 percent over prior-year quarter
- Improved results across all business units
Archer Daniels Midland Company (NYSE: ADM) today reported financial
results for the quarter ended March 31, 2017.
“Our year-over-year results improved as a company and in all four of our
business segments during the first quarter, and we continue to be on
course for a stronger 2017,” said ADM Chairman and CEO Juan Luciano. “Ag
Services was up for the quarter, with higher results in U.S. grain and
transportation operations. The Corn business delivered a good quarter,
with improved performances across their portfolio. Oilseeds earnings
were up, including solid results in global softseeds and from our equity
investment in Wilmar. WFSI results were higher, led by WILD Flavors.
“We are continuing to execute the long-term strategic plan that we
launched in 2012, and we are seeing the results. We have strengthened
our core, improving our cost positions and implementing measures to
improve results where necessary. Our operational excellence initiatives
have delivered significant savings and efficiencies. And we continue to
grow strategically by expanding into new geographies and increasing our
capabilities in food, beverage and feed. Those actions contributed to
the improved results we saw in the first quarter despite muted margin
environments in some businesses. The continued momentum in the execution
of our plan gives us confidence that we will deliver sustainable value
creation.”
First Quarter 2017 Highlights
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2016
|
|
|
|
As Reported
|
|
Adj
|
|
Adjusted1
|
|
As Reported
|
|
Adj
|
|
Adjusted1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share
|
|
$
|
0.59
|
|
$
|
0.01
|
|
|
$
|
0.60
|
|
$
|
0.39
|
|
$
|
0.03
|
|
|
$
|
0.42
|
|
|
|
|
|
|
|
|
|
Segment Operating Profit1
|
|
|
|
|
|
|
|
Agricultural Services
|
|
$
|
81
|
|
$
|
7
|
|
|
$
|
88
|
|
$
|
75
|
|
$
|
1
|
|
|
$
|
76
|
|
Corn Processing
|
|
177
|
|
(6
|
)
|
|
171
|
|
131
|
|
(2
|
)
|
|
129
|
|
Oilseeds Processing
|
|
313
|
|
1
|
|
|
314
|
|
260
|
|
1
|
|
|
261
|
|
WFSI
|
|
75
|
|
—
|
|
|
75
|
|
70
|
|
—
|
|
|
70
|
|
Other
|
|
30
|
|
—
|
|
|
30
|
|
37
|
|
—
|
|
|
37
|
|
Total
|
|
$
|
676
|
|
$
|
2
|
|
|
$
|
678
|
|
$
|
573
|
|
$
|
—
|
|
|
$
|
573
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Non-GAAP financial measures; see pages 4 and 9 for
explanations and reconciliations, including after-tax amounts.
First Quarter 2017 Highlights (continued)
-
EPS as reported of $0.59 includes a $0.01 per share charge related to
asset impairments and restructuring; a $0.01 per share LIFO gain; and
certain discrete tax items of $0.01 per share. Adjusted EPS, which
excludes these items, was $0.601.
-
Trailing four-quarter-average adjusted ROIC was 6.4 percent1,
40 basis points above annual WACC of 6.0 percent.
-
The effective tax rate was 26 percent for the quarter compared to 25
percent in the year-ago quarter.
-
During the first quarter of 2017, the company returned $431 million to
shareholders through dividends and share repurchases.
Results of Operations
Ag Services delivered improved results over the year-ago quarter. In
Merchandising and Handling, North America grain showed better results,
with improving grain carries and good execution volumes amid strong
global demand for U.S. commodities. International merchandising was down
from the year-ago quarter due to lack of merchandising opportunities and
some unfavorable mark-to-market effects.
Transportation had a significantly improved quarter, led by our North
America barge and stevedoring operations, which capitalized on high
volumes versus the prior-year quarter.
Milling and Other had a solid quarter, but with lower volumes and
margins.
Corn Processing results were significantly better than the year-ago
quarter. Sweeteners and starches delivered a strong performance on
improved domestic demand and higher volumes and margins from the
European business. Bioproducts was up over the previous year, with very
strong exports and improved margins driving solid results in ethanol.
Animal nutrition was up, with improved margins in lysine offset
partially by overall lower sales volumes caused by a mild winter.
Oilseeds Processing results were up over the first quarter of 2016.
Crushing and origination was comparable to the year-ago period:
Softseeds results were significantly higher than the previous year, as
we took advantage of our softseed processing footprint and flex capacity
to capitalize on margin opportunities both in North America and Europe.
A competitive global protein meal market continued to pressure soybean
crush margins. South America crush and origination was down, as the pace
of farmer selling has not kept pace with export demand.
Refining, packaging, biodiesel and other results declined. Solid EU food
oils results were offset by timing effects; North American biodiesel
volumes and margins were down, while South American packaged oils and
biodiesel improved.
Results in Asia improved significantly over the prior-year quarter, due
to both ADM’s increased ownership stake in, and strong results from,
Wilmar.
WFSI was up over the prior-year quarter. WILD Flavors improved on its
solid first quarter in 2016: The EMEAI WILD Flavors business had a very
strong March, led by good sales volumes in Africa and the Middle East.
The WILD Flavors business in Asia also had a good quarter, thanks to
strong sales in China. Specialty ingredients was slightly down for the
quarter, as solid protein results in North America were offset by weaker
results in some specialty ingredients, including fibers.
1 Non-GAAP financial measures; see pages 9 and 10 for
explanations and reconciliations, including after-tax amounts.
Other Items of Note
As additional information to help clarify underlying business
performance, the tables on page 9 include both reported EPS as well as
adjusted EPS excluding significant timing effects.
Segment operating profit of $676 million as reported for the quarter
includes charges of $9 million related to asset impairment and
restructuring activities. Prior-year segment operating profit included
restructuring charges of $2 million.
Minority interest and other corporate results improved from the prior
year primarily due to improved results from our equity investment in
CIP. Corporate unallocated costs were up due to ADM’s business
transformation program and related IT costs, and higher people costs
including benefit accruals.
The effective tax rate increased approximately 1 percent due primarily
to the expiration of U.S. tax credits including the biodiesel tax
credit, partially offset by changes in the forecast geographic mix of
earnings.
Conference Call Information
ADM will host a webcast on May 2, 2017, 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 webcast or to download
the slide presentation, go to www.adm.com/webcast.
A replay of the webcast will also be available for an extended period of
time at www.adm.com/webcast.
Forward-Looking Statements
Some of the above statements constitute forward-looking statements.
These statements are based on many assumptions and factors that are
subject to risk and uncertainties. ADM has provided additional
information in its reports on file with the SEC concerning assumptions
and factors that could cause actual results to differ materially from
those in this presentation, and you should carefully review the
assumptions and factors in our SEC reports. To the extent permitted
under applicable law, ADM assumes no obligation to update any
forward-looking statements.
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
approximately 32,000 employees serving customers in more than 160
countries. With a global value chain that includes approximately 500
crop procurement locations, 250 ingredient manufacturing facilities, 38
innovation centers and the world’s premier crop transportation network,
we connect the harvest to the home, making products for food, animal
feed, industrial 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
|
|
|
|
|
|
March 31
|
|
|
|
(In millions)
|
|
2017
|
|
2016
|
|
Change
|
|
|
|
|
|
|
|
|
|
Agricultural Services Operating Profit
|
|
$
|
81
|
|
|
$
|
75
|
|
|
$
|
6
|
|
|
Merchandising and handling (excluding specified item)
|
|
19
|
|
|
24
|
|
|
(5
|
)
|
|
Milling and other (excluding specified item)
|
|
45
|
|
|
48
|
|
|
(3
|
)
|
|
Transportation
|
|
24
|
|
|
4
|
|
|
20
|
|
|
Impairment and restructuring charges*
|
|
(7
|
)
|
|
(1
|
)
|
|
(6
|
)
|
|
|
|
|
|
|
|
|
|
Corn Processing Operating Profit
|
|
$
|
177
|
|
|
$
|
131
|
|
|
$
|
46
|
|
|
Sweeteners and starches (excluding specified items)
|
|
161
|
|
|
141
|
|
|
20
|
|
|
Bioproducts (excluding specified item)
|
|
10
|
|
|
(12
|
)
|
|
22
|
|
|
Corn hedge timing effects*
|
|
7
|
|
|
2
|
|
|
5
|
|
|
Impairment charges*
|
|
(1
|
)
|
|
—
|
|
|
(1
|
)
|
|
|
|
|
|
|
|
|
|
Oilseeds Processing Operating Profit
|
|
$
|
313
|
|
|
$
|
260
|
|
|
$
|
53
|
|
|
Crushing and origination (excluding specified item)
|
|
120
|
|
|
120
|
|
|
—
|
|
|
Refining, packaging, biodiesel, and other
|
|
59
|
|
|
79
|
|
|
(20
|
)
|
|
Asia
|
|
135
|
|
|
62
|
|
|
73
|
|
|
Restructuring charges*
|
|
(1
|
)
|
|
(1
|
)
|
|
—
|
|
|
|
|
|
|
|
|
|
|
Wild Flavors & Specialty Ingredients Operating Profit (WFSI)
|
|
$
|
75
|
|
|
$
|
70
|
|
|
$
|
5
|
|
|
WFSI
|
|
75
|
|
|
70
|
|
|
5
|
|
|
|
|
|
|
|
|
|
|
Other Operating Profit
|
|
$
|
30
|
|
|
$
|
37
|
|
|
$
|
(7
|
)
|
|
Financial
|
|
30
|
|
|
37
|
|
|
(7
|
)
|
|
|
|
|
|
|
|
|
|
Segment Operating Profit
|
|
$
|
676
|
|
|
$
|
573
|
|
|
$
|
103
|
|
|
*Memo: Adjusted Segment Operating Profit
|
|
$
|
678
|
|
|
$
|
573
|
|
|
$
|
105
|
|
|
|
|
|
|
|
|
|
|
Corporate Results
|
|
$
|
(218
|
)
|
|
$
|
(267
|
)
|
|
$
|
49
|
|
|
LIFO credit (charge)
|
|
13
|
|
|
(14
|
)
|
|
27
|
|
|
Interest expense - net
|
|
(79
|
)
|
|
(68
|
)
|
|
(11
|
)
|
|
Unallocated corporate costs
|
|
(132
|
)
|
|
(116
|
)
|
|
(16
|
)
|
|
Minority interest and other charges
|
|
(20
|
)
|
|
(69
|
)
|
|
49
|
|
|
Earnings Before Income Taxes
|
|
$
|
458
|
|
|
$
|
306
|
|
|
$
|
152
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 significant 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 significant 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
|
|
|
|
March 31
|
|
|
|
2017
|
|
2016
|
|
|
|
(in millions, except per share amounts)
|
|
|
|
|
|
|
|
Revenues
|
|
$
|
14,988
|
|
|
$
|
14,384
|
|
|
Cost of products sold
|
|
14,120
|
|
|
13,603
|
|
|
Gross profit
|
|
868
|
|
|
781
|
|
|
Selling, general, and administrative expenses
|
|
521
|
|
|
479
|
|
|
Asset impairment, exit, and restructuring costs
|
|
10
|
|
|
13
|
|
|
Equity in earnings of unconsolidated affiliates
|
|
(172
|
)
|
|
(65
|
)
|
|
Interest income
|
|
(23
|
)
|
|
(22
|
)
|
|
Interest expense
|
|
81
|
|
|
70
|
|
|
Other income - net
|
|
(7
|
)
|
|
—
|
|
|
Earnings before income taxes
|
|
458
|
|
|
306
|
|
|
Income taxes
|
|
(118
|
)
|
|
(76
|
)
|
|
Net earnings including noncontrolling interests
|
|
340
|
|
|
230
|
|
|
Less: Net earnings (losses) attributable to noncontrolling interests
|
|
1
|
|
|
—
|
|
|
Net earnings attributable to ADM
|
|
$
|
339
|
|
|
$
|
230
|
|
|
|
|
|
|
|
|
Diluted earnings per common share
|
|
$
|
0.59
|
|
|
$
|
0.39
|
|
|
|
|
|
|
|
|
Average number of shares outstanding
|
|
579
|
|
|
597
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other (income) expense - net consists of:
|
|
|
|
|
|
Gains on sales of assets (a)
|
|
$
|
(16
|
)
|
|
$
|
(3
|
)
|
|
Other - net
|
|
9
|
|
|
3
|
|
|
|
|
$
|
(7
|
)
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
(a)
|
|
Current period gain includes individually insignificant disposals in
Ag Services ($11 million), Oilseeds ($3 million) and Corporate ($2
million). Prior period gain includes individually insignificant
disposals in Ag Services ($2 million) and Oilseeds ($1 million).
|
|
|
|
Summary of Financial Condition
|
|
(Unaudited)
|
|
|
|
|
|
March 31,
|
|
March 31,
|
|
|
|
2017
|
|
2016
|
|
|
|
(in millions)
|
|
Net Investment In
|
|
|
|
|
|
Cash and cash equivalents (b)
|
|
$
|
476
|
|
|
$
|
706
|
|
Short-term marketable securities (b)
|
|
272
|
|
|
525
|
|
Operating working capital (a)
|
|
7,387
|
|
|
7,667
|
|
Property, plant, and equipment
|
|
9,771
|
|
|
9,891
|
|
Investments in and advances to affiliates
|
|
4,700
|
|
|
4,089
|
|
Long-term marketable securities
|
|
196
|
|
|
441
|
|
Goodwill and other intangibles
|
|
3,780
|
|
|
3,889
|
|
Other non-current assets
|
|
697
|
|
|
401
|
|
|
|
$
|
27,279
|
|
|
$
|
27,609
|
|
Financed By
|
|
|
|
|
|
Short-term debt (b)
|
|
$
|
420
|
|
|
$
|
783
|
|
Long-term debt, including current maturities (b)
|
|
6,787
|
|
|
5,863
|
|
Deferred liabilities
|
|
2,917
|
|
|
3,050
|
|
Temporary equity
|
|
26
|
|
|
—
|
|
Shareholders’ equity
|
|
17,129
|
|
|
17,913
|
|
|
|
$
|
27,279
|
|
|
$
|
27,609
|
|
|
|
|
|
|
|
|
|
|
(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)
|
|
|
|
|
|
Three months ended
|
|
|
|
March 31
|
|
|
|
2017
|
|
2016
|
|
|
|
(in millions)
|
|
Operating Activities
|
|
|
|
|
|
Net earnings
|
|
$
|
340
|
|
|
$
|
230
|
|
|
Depreciation and amortization
|
|
225
|
|
|
231
|
|
|
Asset impairment charges
|
|
1
|
|
|
11
|
|
|
Gains on sales of assets
|
|
(16
|
)
|
|
(3
|
)
|
|
Other - net
|
|
(42
|
)
|
|
88
|
|
|
Changes in operating assets and liabilities
|
|
(99
|
)
|
|
(532
|
)
|
|
Total Operating Activities
|
|
409
|
|
|
25
|
|
|
|
|
|
|
|
|
Investing Activities
|
|
|
|
|
|
Purchases of property, plant and equipment
|
|
(200
|
)
|
|
(180
|
)
|
|
Net assets of businesses acquired
|
|
(90
|
)
|
|
(84
|
)
|
|
Proceeds from sale of business/assets
|
|
25
|
|
|
11
|
|
|
Marketable securities - net
|
|
72
|
|
|
(50
|
)
|
|
Other investing activities
|
|
(188
|
)
|
|
(145
|
)
|
|
Total Investing Activities
|
|
(381
|
)
|
|
(448
|
)
|
|
|
|
|
|
|
|
Financing Activities
|
|
|
|
|
|
Long-term debt payments
|
|
(2
|
)
|
|
(4
|
)
|
|
Net borrowings (payments) under lines of credit
|
|
263
|
|
|
697
|
|
|
Share repurchases
|
|
(248
|
)
|
|
(296
|
)
|
|
Cash dividends
|
|
(183
|
)
|
|
(177
|
)
|
|
Other
|
|
(10
|
)
|
|
1
|
|
|
Total Financing Activities
|
|
(180
|
)
|
|
221
|
|
|
|
|
|
|
|
|
Increase (decrease) in cash, cash equivalents, restricted cash,
and restricted cash equivalents
|
|
(152
|
)
|
|
(202
|
)
|
|
Cash, cash equivalents, restricted cash, and restricted cash
equivalents - beginning of period
|
|
688
|
|
|
1,003
|
|
|
Cash, cash equivalents, restricted cash, and restricted cash
equivalents - end of period
|
|
$
|
536
|
|
|
$
|
801
|
|
|
|
|
Segment Operating Analysis
|
|
(unaudited)
|
|
|
|
|
|
Quarter ended
|
|
|
|
March 31
|
|
|
|
2017
|
|
2016
|
|
|
|
(in ‘000s metric tons)
|
|
Processed volumes
|
|
|
|
|
|
Oilseeds Processing
|
|
8,819
|
|
|
8,281
|
|
Corn Processing
|
|
5,544
|
|
|
5,742
|
|
Total processed volumes
|
|
14,363
|
|
|
14,023
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter ended
|
|
|
|
March 31
|
|
|
|
2017
|
|
2016
|
|
|
|
(in millions)
|
|
Revenues
|
|
|
|
|
|
Agricultural Services
|
|
$
|
6,806
|
|
|
$
|
6,480
|
|
Corn Processing
|
|
2,244
|
|
|
2,207
|
|
Oilseeds Processing
|
|
5,282
|
|
|
4,997
|
|
Wild Flavors and Specialty Ingredients
|
|
562
|
|
|
592
|
|
Other
|
|
94
|
|
|
108
|
|
Total revenues
|
|
$
|
14,988
|
|
|
$
|
14,384
|
|
|
|
Adjusted Earnings Per Share
|
|
A non-GAAP financial measure
|
|
(unaudited)
|
|
|
|
|
|
Quarter ended
|
|
|
|
March 31
|
|
|
|
2017
|
|
2016
|
|
EPS (fully diluted) as reported
|
|
$
|
0.59
|
|
|
$
|
0.39
|
|
Adjustments:
|
|
|
|
|
|
LIFO charge (credit) (a)
|
|
(0.01
|
)
|
|
0.02
|
|
Asset impairment and restructuring charges (b)
|
|
0.01
|
|
|
0.01
|
|
Certain discrete tax adjustments (c)
|
|
0.01
|
|
|
—
|
|
Sub-total adjustments
|
|
0.01
|
|
|
0.03
|
|
Adjusted earnings per share (non-GAAP)
|
|
$
|
0.60
|
|
|
$
|
0.42
|
|
|
|
|
|
|
|
Memo: Corn timing effects (gain) loss (d)
|
|
(0.01
|
)
|
|
—
|
|
Adjusted EPS excluding timing effects (non-GAAP)
|
|
$
|
0.59
|
|
|
$
|
0.42
|
|
|
|
|
|
|
|
|
|
|
(a)
|
|
Current quarter changes in the Company’s LIFO reserves of $13
million pretax ($8 million after tax), tax effected using the
Company’s U.S. effective income tax rate. Prior quarter changes in
the Company’s LIFO reserves of $14 million pretax ($9 million after
tax), tax effected using the Company’s U.S. effective income tax
rate.
|
|
(b)
|
|
Current quarter charges of $10 million pretax ($8 million after tax)
related to impairment of certain long-lived assets and restructuring
charges, tax effected using the applicable tax rates. Prior quarter
charges of $13 million pretax ($8 million after tax), primarily
related to software impairment and restructuring charges, tax
effected using the applicable tax rates.
|
|
(c)
|
|
Certain discrete tax adjustments unrelated to current period
earnings totaling $4 million related to valuation allowances.
|
|
(d)
|
|
Corn timing effect losses of $7 million pretax ($4 million after
tax), tax effected using the Company's U.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 EPS as reported 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 underlying business
performance and better period-to-period comparability. These non-GAAP
financial measures are not intended to replace or be an alternative to
EPS as reported, 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.
|
|
|
Adjusted Return on Invested Capital
|
|
A non-GAAP financial measure
|
|
(unaudited)
|
|
|
|
Adjusted ROIC Earnings (in millions)
|
|
|
|
|
|
|
|
|
|
Four Quarters
|
|
|
|
Quarter Ended
|
|
Ended
|
|
|
|
June 30, 2016
|
|
Sep. 30, 2016
|
|
Dec. 31, 2016
|
|
Mar. 31, 2017
|
|
Mar. 31, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings attributable to ADM
|
|
$
|
284
|
|
|
$
|
341
|
|
|
$
|
424
|
|
|
$
|
339
|
|
|
$
|
1,388
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense
|
|
65
|
|
|
78
|
|
|
80
|
|
|
81
|
|
|
304
|
|
|
LIFO
|
|
88
|
|
|
(85
|
)
|
|
2
|
|
|
(13
|
)
|
|
(8
|
)
|
|
Other adjustments
|
|
(106
|
)
|
|
82
|
|
|
(19
|
)
|
|
10
|
|
|
(33
|
)
|
|
Total adjustments
|
|
47
|
|
|
75
|
|
|
63
|
|
|
78
|
|
|
263
|
|
|
Tax on adjustments
|
|
(39
|
)
|
|
(22
|
)
|
|
(2
|
)
|
|
(24
|
)
|
|
(87
|
)
|
|
Net adjustments
|
|
8
|
|
|
53
|
|
|
61
|
|
|
54
|
|
|
176
|
|
|
Total Adjusted ROIC Earnings
|
|
$
|
292
|
|
|
$
|
394
|
|
|
$
|
485
|
|
|
$
|
393
|
|
|
$
|
1,564
|
|
|
|
|
Adjusted Invested Capital (in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended
|
|
Trailing Four
|
|
|
|
June 30, 2016
|
|
Sep. 30, 2016
|
|
Dec. 31, 2016
|
|
Mar. 31, 2017
|
|
Quarter Average
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity (1)
|
|
$
|
17,655
|
|
|
$
|
17,538
|
|
|
$
|
17,173
|
|
|
$
|
17,121
|
|
|
$
|
17,372
|
|
|
+ Interest-bearing liabilities (2)
|
|
7,386
|
|
|
7,073
|
|
|
6,931
|
|
|
7,207
|
|
|
7,149
|
|
|
+ LIFO adjustment (net of tax)
|
|
99
|
|
|
45
|
|
|
47
|
|
|
39
|
|
|
58
|
|
|
Other adjustments
|
|
(87
|
)
|
|
57
|
|
|
10
|
|
|
12
|
|
|
(2
|
)
|
|
Total Adjusted Invested Capital
|
|
$
|
25,053
|
|
|
$
|
24,713
|
|
|
$
|
24,161
|
|
|
$
|
24,379
|
|
|
$
|
24,577
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Return on Invested Capital
|
|
|
|
|
|
|
|
6.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
Excludes noncontrolling interests
|
|
(2)
|
|
Includes short-term debt, current maturities of long-term debt,
capital lease obligations, and long-term debt
|
Adjusted ROIC is Adjusted ROIC earnings divided by adjusted invested
capital. Adjusted ROIC earnings is ADM’s net earnings adjusted
for the after tax effects of interest expense, changes in the LIFO
reserve and other specified items. Adjusted invested capital is
the sum of ADM’s equity (excluding noncontrolling interests) and
interest-bearing liabilities adjusted for the after tax effect of the
LIFO reserve, and other specified items. Management believes
Adjusted ROIC is a useful financial measure because it provides
investors information about ADM’s returns excluding the impacts of LIFO
inventory reserves and other specified items and increases
period-to-period comparability of underlying business performance. Management
uses Adjusted ROIC to measure ADM’s performance by comparing Adjusted
ROIC to its weighted average cost of capital (WACC). Adjusted
ROIC, Adjusted ROIC earnings and Adjusted invested capital are non-GAAP
financial measures and are not intended to replace or be alternatives to
GAAP financial measures.
Archer Daniels Midland Company
Media Relations
Colin McBean
312-634-8484
or
Investor Relations
Mark Schweitzer
217-451-8286