ADM: Reports Q2/2014 Earnings of 0,77 USD per Share

Decatur / IL. (adm) Archer Daniels Midland Company (ADM) reported financial results for the quarter ended June 30, 2014. The company reported adjusted earnings per share of 0,77 USD, up from 0,46 USD in the same period last year. Adjusted segment operating profit was 819 million USD, up 32 percent from 621 million USD in the year-ago period. Net earnings for the quarter were 533 million USD, or 0,81 USD per share, and segment operating profit was 888 million USD. «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 Highlights:

  • Adjusted EPS of 0,77 USD excludes approximately 73 million USD in pre-tax LIFO income, or 0,07 USD per share, and 31 million USD in pre-tax costs related to restructuring, or about 0,03 USD per share.
  • Oilseeds Processing increased 18 million USD, as continued good North American crushing results were partially offset by weaker origination results in South America and lower results from Wilmar International.
  • Corn Processing increased 69 million USD on strong ethanol demand and steady sweetener volumes.
  • Agricultural Services increased 122 million USD, 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 USD, compared to 5,5 billion USD 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 USD.

Oilseeds operating profit of 328 million USD represented an increase of 18 million USD from the same period one year earlier. These numbers exclude a negligible charge for cocoa hedge timing effects, versus a gain of eleven million USD, or 0,01 USD per share, in the year-ago period. Crushing and origination operating profit declined 22 million USD to 163 million USD. 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 USD for the quarter, up 26 million USD 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 USD in the quarter, up 37 million USD 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 USD from the same period last year, principally reflecting lower results from Wilmar International Limited.

Corn processing operating profit of 277 million USD represented an increase of 69 million USD from the same period one year earlier. These numbers exclude positive timing effects of 70 million USD, or 0,07 USD per share, versus 15 million USD, or 0,01 USD per share, in the year-ago period. Sweeteners and starches results increased 25 million USD to 136 million USD on steady volumes, with lower average selling prices offset by lower net corn costs. Bioproducts results increased 44 million USD to 141 million USD driven by strong demand and good margins in ethanol.

Agricultural Services operating profit was 203 million USD, up 122 million USD from the year-ago period. Merchandising and handling earnings increased 101 million USD to 115 million USD, amid strong U.S. export volumes, partial recovery of a loss reserve, and continued improvement in international merchandising results. Transportation results increased 24 million USD to 27 million USD 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.

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