ADM Reports Adjusted Third Quarter 2013 Earnings of $0.46 per Share

  ADM Reports Adjusted Third Quarter 2013 Earnings of $0.46 per Share

                Net income of $476 million or $0.72 per share

Business Wire

DECATUR, Ill. -- October 29, 2013

Archer Daniels Midland Company (NYSE: ADM) today reported financial results
for the quarter ended Sept. 30, 2013. The company reported adjusted earnings
per share^1 of $0.46, down from $0.53 in the same period last year. Net
earnings for the quarter were $476 million, or $0.72 per share, up from $0.28
per share in the same period one year earlier. Segment operating profit^1 was
$606 million, down six percent when excluding an impairment charge from the
year-ago quarter.

“The team delivered solid operating results overall, despite the lingering
effects of the 2012 U.S. drought,” said ADM Chairman and CEO Patricia Woertz.
“Oilseeds performed well, particularly in North and South America; Corn
benefitted from improved ethanol margins; and Ag Services managed effectively
through the transition to new crop.

“Looking forward, as record global crop supplies refill the pipeline, we will
employ our efficient network to meet strong demand from customers around the
world.”

Third Quarter 2013 Highlights

  *Adjusted EPS of $0.46 excludes approximately $298 million in pretax LIFO
    credits, or $0.28 per share, and other items totaling ($0.02) cents per
    share.
  *Oilseeds Processing profit increased $25 million as North American
    operations effectively managed through the transition between old and new
    crop.
  *Corn Processing profit increased $91 million on improved results from
    ethanol.
  *Agricultural Services profit declined $122 million when adjusting for
    impairment charges in the year-ago quarter. Current-period performance was
    impacted by low U.S. exports and weak international merchandising results.
  *ADM’s net debt continued to fall, reflecting strong cash flows from lower
    commodity prices and a focus on cash generation. Net debt reached $3.4
    billion, down from $8.8 billion a year ago.

Adjusted EPS of 46 Cents, down 7 Cents

Adjusted EPS decreased primarily due to lower Agricultural Services operating
profit.

This quarter, the company’s estimate of its full-year effective tax rate was
30 percent. This quarter’s effective tax rate of 32 percent includes the
resultant year-to-date true up in tax expense and discrete items of $12
million, net. The effective tax rate for the prior-year quarter of 38 percent
was negatively impacted by asset impairment charges and other items.

Oilseeds Earnings Strong on North and South American Performance

Oilseeds operating profit in the third quarter was $361 million, up $25
million from the same period one year earlier.

Crushing and origination operating profit was $242 million, down $14 million
from the year-ago quarter. Despite tight crop supplies, ADM’s North America
oilseed crushing operations had good capacity utilization amid good foreign
and domestic protein meal demand. In South America, ADM exported large volumes
at the peak of the inverse market, capturing strong margins. European crushing
results declined due to limited soybean availability.

Refining, packaging, biodiesel and other generated a profit of $85 million for
the quarter, up $57 million on improved biodiesel results and record profits
from protein specialties.

Cocoa and other results continued to improve sequentially, though they
decreased $24 million compared to the year-ago quarter.

Oilseeds results in Asia for the quarter were up $6 million from the same
period last year, principally reflecting ADM’s share of the improved results
from Wilmar International Limited.

Corn Processing Results Improved on Ethanol Margin Recovery

Corn processing operating profit of $159 million represented an increase of
$91 million from the same period one year earlier. Corn hedge effects in the
third quarter were a charge of $11 million, versus a charge of $31 million in
the year-ago period.

Excluding the impact of corn hedge ineffectiveness, sweeteners and starches
results declined by $26 million, with overall demand and margins remaining
solid.

Excluding the impact of corn hedge ineffectiveness, bioproducts results
increased $97 million to $71 million. Overall ethanol margins remained
profitable though volatile.

Agricultural Services Impacted by Lower U.S. Volumes and Weaker International
Merchandising Results

Agricultural Services operating profit was $102 million, up $24 million from
the same period one year earlier. When adjusting for year-ago charges related
to Gruma and intercompany insurance settlements in the current period of
approximately $30 million, results for the segment declined $152 million from
last year.

Merchandising and handling earnings declined $104 million to $4 million, as
low U.S. crop supplies reduced export volumes and as results from
international merchandising were weak.

Transportation results increased $2 million to $21 million on good northbound
barge freight business.

Milling and other results remained solid as the milling business continued to
perform well.

Conference Call Information

ADM will host a conference call and audio webcast Tuesday, Oct. 29, 2013, at 8
a.m. Central Time to discuss financial results and provide a company update. A
financial summary slide presentation will be available to download
approximately 60 minutes prior to the call.

To listen to the call via the Internet or to download the slide presentation,
go to www.adm.com/webcast. To listen by telephone, dial (888) 522-5398 in the
U.S. or (706) 902-2121 if calling from outside the U.S. The access code is
71745928.

Replay of the call will be available from Oct. 30, 2013, to Nov. 5, 2013. To
listen to the replay by telephone, dial (855) 859-2056 in the U.S. or (404)
537-3406 if calling from outside the U.S. The access code is 71745928. The
replay will also be available online for an extended period of time at
www.adm.com/webcast.

About ADM

For more than a century, the people of Archer Daniels Midland Company (NYSE:
ADM) have transformed crops into products that serve vital needs. Today,
30,000 ADM employees around the globe convert oilseeds, corn, wheat and cocoa
into products for food, animal feed, industrial and energy uses. With more
than 265 processing plants, 460 crop procurement facilities, and the world’s
premier crop transportation network, ADM helps connect the harvest to the home
in more than 140 countries. For more information about ADM and its products,
visit www.adm.com.

^1 Non-GAAP financial measures, see pages 5 and 10 for explanations and
reconciliations

                           Financial Tables Follow

                                                                        
Segment Operating Profit and Corporate Results
A non-GAAP financial measure (unaudited)
                                                                              
                   Quarter ended                      Nine months ended
                   September 30                     September 30           
                   2013      2012       Change      2013       2012       Change
                   (in millions)
Oilseeds
Processing                                                     
Operating Profit
Crushing and       $ 242      $ 256         ($14  )   $ 583       $ 670         ($87  )
origination
Refining,
packaging,           85         28          57          286         191         95
biodiesel, and
other
Cocoa and other      5          29          (24   )     (23   )     240         (263  )
Asia                29       23        6         149       108       41    
    Total
    Oilseeds       $ 361     $ 336      $ 25       $ 995      $ 1,209     ($214 )
    Processing
                                                                              
Corn Processing
Operating Profit
Sweeteners and
starches
(excluding         $ 99       $ 125         ($26  )   $ 330       $ 317       $ 13
timing

effects)
Bioproducts
(excluding           71         (26   )     97          245         (39   )     284
timing effects
and charges)
Corn hedge           (11  )     (31   )     20          (40   )     7           (47   )
timing effects
Restructuring       0        0         0         0         (10   )    10    
and exit costs
    Total Corn     $ 159     $ 68       $ 91       $ 535      $ 275      $ 260   
    Processing
                                                                              
Agricultural
Services
Operating Profit
Merchandising      $ 4        $ 108         ($104 )   $ 104       $ 286         ($182 )
and handling
Milling and
other (excluding     77         97          (20   )     200         259         (59   )
charge)
Asset impairment     0          (146  )     146         0           (146  )     146
charge
Transportation      21       19        2         30        63        (33   )
    Total
    Agricultural   $ 102     $ 78       $ 24       $ 334      $ 462       ($128 )
    Services
                                                                              
Other Operating
Profit
Financial           ($16 )   $ 16        ($32  )   $ 19       $ 14       $ 5     
    Total Other     ($16 )   $ 16        ($32  )   $ 19       $ 14       $ 5     
                                                                              
Segment            $ 606      $ 498       $ 108       $ 1,883     $ 1,960       ($77  )
Operating Profit
                                                                              
Corporate
Results
LIFO credit        $ 298        ($53  )   $ 351       $ 225         ($110 )   $ 335
(charge)
Interest expense     (105 )     (107  )     2           (314  )     (333  )     19
- net
Corporate costs      (97  )     (70   )     (27   )     (250  )     (204  )     (46   )
Employee-related     0          0           0           0           (71   )     71
exit costs
Gain (Loss) on
Australian FX        26         0           26          (25   )     0           (25   )
hedges
Other               (19  )    27        (46   )    (118  )    37        (155  )
    Total          $ 103      ($203 )   $ 306       ($482 )    ($681 )   $ 199   
    Corporate
                                                                              
Earnings Before    $ 709     $ 295      $ 414      $ 1,401    $ 1,279    $ 122   
Income Taxes

Total segment operating profit is ADM’s consolidated income from operations
before income tax that excludes certain corporate items. Management believes
that segment operating profit is a useful measure of ADM’s performance because
it provides investors information about ADM’s business unit performance
excluding certain corporate overhead costs. Total segment operating profit is
a non-GAAP financial measure and is not intended to replace earnings before
income tax, the most directly comparable GAAP financial measure. Total segment
operating profit is not a measure of consolidated operating results under U.S.
GAAP and should not be considered as an alternative to income before income
taxes or any other measure of consolidated operating results under U.S. GAAP.

                                                   
Consolidated Statements of Earnings
(unaudited)
                                                       
                             Quarter ended             Nine months ended
                             September 30              September 30
                             2013        2012         2013        2012
                             (in millions, except per share amounts)
                                                                 
Net sales and other          $ 21,393     $ 21,808     $ 65,661     $ 65,638
operating income
Cost of products sold         20,237     21,002     62,942     63,011 
    Gross profit               1,156        806          2,719        2,627
Selling, general, and          429          390          1,317        1,186
administrative expenses
Asset impairment charges       23           146          23           231
and exit costs
Equity in (earnings)
losses of unconsolidated       (63    )     (113   )     (262   )     (334   )
affiliates
Interest income                (12    )     (30    )     (68    )     (80    )
Interest expense               105          106          318          338
Other (income) expense -      (35    )    12         (10    )    7      
net
    Earnings before income     709          295          1,401        1,279
    taxes
Income taxes                  (228   )    (111   )    (424   )    (397   )
    Net earnings including
    noncontrolling             481          184          977          882
    interests
Less: Net earnings
(losses) attributable to
noncontrolling                5          2          9          17     

interests
Net earnings attributable    $ 476       $ 182       $ 968       $ 865    
to ADM
                                                                    
Diluted earnings per         $ 0.72       $ 0.28       $ 1.46       $ 1.31
common share
                                                                    
Average number of shares       664          661          663          662
outstanding
                                                                    
                                                                    
Other (income) expense -
net consists of:
    Net gain on marketable
    securities                 ($2    )     ($2    )     ($7    )     ($11   )
    transactions
    Gain on sale of assets     (6     )     (5     )     (27    )     (18    )
    Gain (Loss) on
    Australian foreign         (26    )     0            25           0
    exchange hedges
    Other - net               (1     )    19         (1     )    36     
                              ($35   )   $ 12         ($10   )   $ 7      

                                                             
Summary of Financial Condition
(unaudited)
                                                                 
                                                 September 30,   September 30,
                                                 2013           2012
                                                 (in millions)
                                                                 
NET INVESTMENT IN
  Cash and cash equivalents                      $    3,252      $    1,235
  Short-term marketable securities                    242             507
  Operating working capital (a)                       10,363          14,796
  Property, plant, and equipment                      10,125          9,883
  Investments in and advances to affiliates           3,183           3,379
  Long-term marketable securities                     685             246
  Other non-current assets                           1,365          1,098
                                                 $    29,215     $    31,144
                                                                 
FINANCED BY
  Short-term debt                                $    364        $    3,678
  Long-term debt, including current maturities        6,520           6,815
  Deferred liabilities                                2,765           2,210
  Shareholders' equity                               19,566         18,441
                                                 $    29,215     $    31,144

(a) Current assets (excluding cash and cash equivalents and short-term
marketable securities) less current liabilities (excluding short-term debt and
current maturities of long-term debt).

                                                
Summary of Cash Flows
(unaudited)
                                                    
                                                    Nine months ended
                                                    September 30
                                                    2013        2012
                                                    (in millions)
Operating Activities                                           
  Net earnings                                      $ 977        $ 882
  Depreciation and amortization                       681          651
  Asset impairment charges                            23           176
  Other - net                                         (235   )     94
  Changes in operating assets and liabilities        3,423      (1,466 )
              Total Operating Activities              4,869        337
Investing Activities
  Purchases of property, plant and equipment          (659   )     (877   )
  Net assets of businesses acquired                   (35    )     (56    )
  Marketable securities - net                         296          134
  Other investing activities                         224        49     
              Total Investing Activities              (174   )     (750   )
Financing Activities
  Long-term debt borrowings                           23           9
  Long-term debt payments                             (265   )     (1,597 )
  Net borrowings (payments) under lines of credit     (2,489 )     2,820
  Debt repayment premium and costs                    -            (12    )
  Purchases of treasury stock                         (95    )     (100   )
  Cash dividends                                      (376   )     (346   )
  Other                                              45         10     
              Total Financing Activities              (3,157 )     784
Increase in cash and cash equivalents                 1,538        371
Cash and cash equivalents - beginning of period      1,714      864    
Cash and cash equivalents - end of period           $ 3,252     $ 1,235  

                                                        
Segment Operating Analysis
(unaudited)
                                                                    
                                     Quarter ended         Nine months ended
                                     September 30          September 30
                                     2013      2012       2013      2012
                                     (in '000s metric tons)
                                                                   
Processed volumes
Oilseeds                               7,191      7,462      22,928     23,414
Corn                                   5,794      6,281      17,314     18,491
Milling and Cocoa                     1,878     1,790     5,364     5,210
Total processed volumes               14,863    15,533    45,606    47,115
                                                                      
                                                                      
                                     Quarter ended         Nine months ended
                                     September 30          September 30
                                     2013      2012       2013      2012
                                     (in millions)
                                                                      
Net sales and other operating
income
Oilseeds Processing                  $ 9,216    $ 9,688    $ 26,695   $ 27,066
Corn Processing                        3,393      3,126      10,084     8,789
Agricultural Services                  8,751      8,956      28,781     29,674
Other                                 33        38        101       109
Total net sales and other            $ 21,393   $ 21,808   $ 65,661   $ 65,638
operating income

                                                         
Adjusted Earnings Per Share
A non-GAAP financial measure
(unaudited)
                                                            
                                       Quarter Ended        Nine months ended
                                       September 30         September 30
                                       2013       2012     2013       2012
Reported EPS (fully diluted)           $ 0.72     $ 0.28   $ 1.46     $ 1.31
Adjustments:
LIFO (credit) charge (a)                 (0.28 )     0.05     (0.21 )     0.10
Effective tax rate adjustment (b)        0.02        0.03     -           0.03
Brazil income tax remeasurement (c)      -           0.01     -           0.01
Asset impairment charges (d)             0.02        0.16     0.02        0.16
(Gain) Loss on Australian-dollar         (0.02 )     -        0.02        -
foreign exchange hedges (e)
FCPA charge (f)                          -           -        0.06        -
Restructuring and exit costs (g)        -         -       -         0.08
Sub-total adjustments                   (0.26 )    0.25    (0.11 )    0.38
Adjusted earnings per share            $ 0.46     $ 0.53   $ 1.35     $ 1.69
(non-GAAP)

(a)  The Company’s pretax changes in its LIFO reserves during the period, tax
      effected using the Company’s U.S. effective income tax rate.
(b)   The impact to EPS due to the increase in the current estimated annual
      effective tax rate on prior quarter’s earnings.
(c)   The tax impact of foreign-exchange remeasurement of certain Brazilian
      assets.
      The asset impairment charges related to certain fixed assets and
(d)   investments, tax effected using the applicable U.S. and Mexican tax
      rates.
(e)   The gain or loss on Australian-dollar foreign exchange hedges tax
      effected using the Company’s U.S. effective income tax rate.
      The FCPA charge related to an estimated provision for settlement with
(f)   the government agencies pertaining to potential violations of
      anti-corruption practices net of estimated tax.
      The restructuring and exit costs related primarily to the global
(g)   workforce reduction program, tax effected using the applicable U.S.,
      European and South American tax rates.

Adjusted EPS is ADM’s fully diluted EPS after removal of the effect on
Reported EPS of certain specified items as more fully described above.
Management believes that Adjusted EPS is a useful measure of ADM’s performance
because it provides investors additional information about ADM’s operations
allowing better evaluation of ongoing business performance. Adjusted EPS is a
non-GAAP financial measure and is not intended to replace or be an alternative
to EPS, the most directly comparable GAAP financial measure, or any other
measures of operating results under GAAP. Earnings amounts in the tables above
have been divided by the company’s diluted shares outstanding for each
respective quarter in order to arrive at an adjusted EPS amount for each
specified item.

Contact:

Archer Daniels Midland Company
Media Relations Contact
David Weintraub
217-424-5413
or
Investor Relations Contact
Case McGee
217-451-8286
 
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