Archer Daniels Midland Company (NYSE: ADM) today reported financial results for the quarter ended Sept. 30, 2012. The company reported net earnings for the quarter of $182 million, or $0.28 per share, down from $0.68 per share in the same period one year earlier. Adjusted earnings per share 1 were $0.50, primarily reflecting a $0.16 charge related to ADM’s planned divestment of Gruma. Segment operating profit 1 was $498 million, including a $146 million charge related to Gruma.
“Our first-quarter segment results were mixed,” said ADM Chairman and CEO Patricia Woertz. “Oilseeds performance was strong, the ethanol industry experienced sustained negative margins, and Agricultural Services managed well through a complicated quarter, challenged by the drought.
“During the first quarter, we focused on actions that will improve returns. We made progress in our ongoing portfolio management efforts. And I’m proud of our efforts and the results of our work to reduce costs and capital.
“As we look ahead to 2013, we are bringing online our large Paraguay soybean processing plant as South American farmers are responding to market conditions with record plantings, and we are implementing plans to navigate the tight U.S. crop supply.“Longer-term, we remain optimistic as we see continued growth in global demand for protein meal and other agricultural products. We continue to execute our strategy, aligning our business to serve rising demand from customers around the world.” First Quarter 2012.5 Financial Highlights
- Adjusted EPS of $0.50 excludes a Gruma-related charge of $0.16 per share and a LIFO charge of $0.05 per share.
- Oilseeds Processing profit increased $116 million, with year-over-year improvements in our crushing and origination business in all regions.
- Corn Processing profit decreased $115 million as continued negative ethanol margins more than offset improved results from sweeteners and starches.
- Agricultural Services profit fell $99 million, excluding the Gruma charge, as smaller crops reduced U.S. merchandising and handling results.
- On track to achieve $150 million in annual run-rate savings ahead of schedule.