ADM: Reports Q1/2012 Earnings of 460 Million USD

Decatur / IL. (adm) Archer Daniels Midland Company (ADM) reported financial results for the quarter ended September 30, 2011. The company reported net earnings for the quarter of 460 million USD or 0,68 USD per share, up 33 percent and 26 percent respectively from the same period one year earlier. Adjusted earnings per share1—which excludes the impact of LIFO and other adjustments – of 0,58 USD was 13 percent lower than the prior year quarter. Segment operating profit1 was 699 million USD, down nine percent from the prior year quarter.

«The first quarter presented a difficult and challenging market environment», said ADM Chairman and CEO Patricia Woertz. «Margin conditions in our global oilseeds segment were generally weak and net corn costs were high. We offset some of these pressures with good management of our commodity positions and by capturing opportunities through our broad and diverse portfolio. During the quarter, we acquired oilseeds facilities in Poland and India and expanded our agricultural services operations to support exports. And we returned capital to shareholders through dividends and share buybacks of 347 million USD», added Woertz. «Looking ahead, we see the margin environment modestly improving and we are optimistic about the long term».

First Quarter 2012 Highlights

Adjusted EPS of 0,58 USD excludes a LIFO gain of 0,11 USD and debt exchange costs of 0,01 USD. Oilseeds Processing profit declined 87 million USD amid a challenging global oilseed crushing environment; however, ADM´s diverse oilseed portfolio helped offset some of this weakness. Corn Processing profit decreased 162 million USD as net corn costs more than doubled from the prior year; net corn costs for the quarter were negatively impacted by economic hedging benefits recognized in prior quarters. Agricultural Services profit increased 112 million USD on strong global merchandising results, including a strong recovery of exports from the Black Sea region. Other businesses improved by 71 million USD on the strength of improved cocoa press margins and smaller losses in the captive insurance subsidiary. ADM returned 347 million USD to shareholders in the quarter, including buying back 8,6 million shares for 240 million USD.

Adjusted EPS of 0,58 USD, down nine Cents

Adjusted EPS declined primarily as segment operating profit was lower by 66 million USD (46 million USD, after tax or 0,07 USD per share). Additionally, a higher outstanding share balance resulted in a dilutive impact of 0,04 USD per share. Corporate costs this quarter were similar to last year´s quarter, after excluding the impacts of LIFO, losses on interest rate swaps and debt exchange costs. The company´s effective income tax rate for the quarter was 30 percent, based on the forecast geographic mix of earnings for fiscal year 2012.