ADM Reports Adjusted Second Quarter 2014 Earnings Of $0.77 Per Share

Archer Daniels Midland Company (NYSE: ADM) today reported financial results for the quarter ended June 30, 2014.

The company reported adjusted earnings per share 1 of $0.77, up from $0.46 in the same period last year. Adjusted segment operating profit 1 was $819 million, up 32 percent from $621 million in the year-ago period.

Net earnings for the quarter were $533 million, or $0.81 per share, and segment operating profit 1 was $888 million.

“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 1
  • Adjusted EPS of $0.77 excludes approximately $73 million in pretax LIFO income, or $0.07 per share, and $31 million in pretax costs related to restructuring, or about $0.03 per share.
  • Oilseeds Processing increased $18 million, as continued good North American crushing results were partially offset by weaker origination results in South America and lower results from Wilmar.
  • Corn Processing increased $69 million on strong ethanol demand and steady sweetener volumes.
  • Agricultural Services increased $122 million, 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 position 2 of the company declined to $3.6 billion, compared to $5.5 billion 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.

Oilseeds Earnings Steady with Strong N.A. Crush Offset by Weaker S.A. Origination and Wilmar

Oilseeds operating profit of $328 million represented an increase of $18 million from the same period one year earlier. These numbers exclude a negligible charge for cocoa hedge timing effects, versus a gain of $11 million, or $0.01 per share, in the year-ago period.

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