Archer Daniels Midland Company (NYSE: ADM) today reported financial results for the quarter ended June 30, 2013. The company reported net earnings for the quarter of $223 million, or $0.34 per share, down from $0.43 per share in the same period one year earlier. Adjusted earnings per share 1 were $0.46, up from $0.38 in the same period last year. Segment operating profit 1 was $647 million, up 19 percent from the prior year.
“The team managed well through this period, as tight U.S. crop supplies reduced volumes,” said ADM Chairman and CEO Patricia Woertz. “Also, corn results improved amid volatile ethanol industry conditions.
“During the quarter, we continued our work to improve the company’s future returns and earnings power over the cycle. Our effort to unlock cash reached $2 billion, with the team reaching this milestone a half-year ahead of schedule. And, in cost, we made solid progress toward our goal of $200 million in additional cost reductions by the end of 2014.
“Looking ahead, we’ll be managing through tight crop supplies until the forecast large but delayed U.S. harvest.”Second Quarter 2013 Highlights
- Adjusted EPS of $0.46 excludes approximately $39 million in pretax LIFO charges, or $0.04 per share; $51 million, or $0.05 per share, in foreign-currency hedging losses related to the GrainCorp acquisition; and $29 million, or $0.03 per share, of additional provisions related to the previously disclosed FCPA matter.
- Oilseeds Processing profit decreased $10 million as solid performance in crushing and origination was offset by weaker cocoa results.
- Corn Processing profit increased $149 million due to improved ethanol results.
- Agricultural Services profit decreased $42 million amid expected lower U.S. origination volumes as well as weaker international merchandising results.
- ADM’s net debt position fell to $5.5 billion, down from $8.9 billion a year ago, as ADM’s focus on capital efficiency further strengthened the balance sheet.