ADM: Reports Q4/2012 Earnings of 284 Million USD

Decatur / IL. (adm) Archer Daniels Midland Company (ADM) reported financial results for the quarter ended June 30, 2012. The company reported net earnings for the quarter of 284 million USD or 0,43 USD per share, down from 0,58 USD per share in the same period one year earlier. Adjusted earnings per share1 were 0,38 USD. Segment operating profit was 544 million USD.

For the fiscal year ended June 30, 2012, net earnings were 1,2 billion USD or 1,84 USD per share. Adjusted earnings per share were 2,25 USD. Segment operating profit was 2,5 billion USD.

«In a challenging fourth quarter, solid results from our global oilseeds business, particularly in South America, were more than offset by negative U.S. ethanol margins and weaker U.S. merchandising results», said ADM Chairman and CEO Patricia Woertz.

«As we look ahead, while drought has reduced the potential size of the U.S. corn crop, we are tracking the development of other crops in North America and Europe», added Woertz. «While U.S. crop carry-outs are expected to be low, we have an experienced business team to manage through this environment. Conditions like these demonstrate the vital role of our global agribusiness. As weather has regional effects on crops, we respond by working with our customers to provide the best alternatives to meet their needs from all growing regions of the world».

Fourth Quarter 2012 Highlights

  • Adjusted EPS of 0,38 USD excludes a LIFO credit of 0,05 USD per share.
  • Oilseeds Processing performed well; the decline of 118 million USD was primarily due to the absence of significant favourable timing effects and weaker results in cocoa and other.
  • Corn Processing results decreased 48 million USD as negative ethanol margins more than offset improved results from sweeteners and starches.
  • Agricultural Services profit fell 222 million USD, as tight U.S. crop supplies impacted both export volumes and U.S. merchandising results.
  • Other Financial results increased eleven million USD on lower insurance loss reserves.
  • ADM returned 160 million USD to shareholders in the quarter. For the fiscal year, ADM returned nearly one billion USD to shareholders.

Adjusted EPS of 38 Cents, down 31 Cents

Adjusted EPS decreased primarily due to lower segment operating profit, partially offset by lower corporate expenses. The effective tax rate for the quarter was 30 percent, resulting in an annual rate of 30 percent.