ADM: Reports Second Quarter 2015 Results

Chicago / IL. (adm) Archer Daniels Midland Company (ADM) reported financial results for the quarter ended June 30, 2015. The company reported adjusted earnings per share of 0.60 USD, down from 0.79 USD in the same period last year. Adjusted segment operating profit was 724 million USD, down 13 percent from 835 million USD in the year-ago period. Net earnings for the quarter were 386 million USD, or 0.62 USD per share, and segment operating profit was 808 million USD.

«Our second-quarter results demonstrate the strength and value of our geographic and business-portfolio diversity». said ADM Chief Executive Officer Juan Luciano. «In Corn, domestic and export demand for ethanol was robust, but record industry production limited margins. This was partially offset by strong results from our corn sweeteners and starches business.

«In Oilseeds, good meal demand supported strong North American soybean crushing results. And South American origination and export volumes were up, leading to good throughput at our expanded origination and port network. These, combined with the flexibility of our global crush plants, helped the Oilseeds team deliver another strong performance.

«The WFSI team had an excellent quarter and continues to make great progress toward achieving their targeted cost and revenue synergies.

«Ag Services earnings were impacted by lower margins and volumes of North American exports, as they were less competitive globally, and by a sharp upward move in commodity prices at the end of the quarter. But, within our Ag Services segment, the milling business had record second-quarter results.

«We’ve continued to advance our strategic plan that’s improving our ROIC and growing our EVA. Among numerous other actions, we closed the sale of our global chocolate business to Cargill; we closed the Barcarena port transaction with Glencore in June; and we remain on track to close both our Eaststarch transaction and the sale of our global cocoa business later this year».

Second Quarter 2015 Highlights

  • Adjusted EPS of 0.60 USD excludes approximately 0.11 USD of gains on asset sales and acquisition-related revaluations, 0.06 USD of LIFO charges, 0.04 USD of charges related to asset impairments and restructurings, and a 0.01 USD gain related to effective tax rate adjustment.
  • Agricultural Services decreased 57 million USD as lower global merchandising results and lower earnings from reduced North American export margins and volumes were partially offset by record second-quarter profits from milling operations.
  • Corn Processing decreased 80 million USD on lower bioproducts results.
  • Oilseeds Processing results were solid, as strong global soy crush and South American origination offset lower soft-seed and refining results.
  • Wild Flavors and Specialty Ingredients earned a strong 104 million USD in the second reporting period for this business unit.
  • Trailing four-quarter-average adjusted ROIC was nine percent, up 120 basis points year over year and 240 basis points above annual WACC of 6.6 percent.
  • During the first half of 2015, the company returned 1.5 billion USD to shareholders through dividends and the repurchase of 24 million shares.