ADM Reports Strong Adjusted Fourth Quarter 2013 Earnings of $0.95 per Share

  ADM Reports Strong Adjusted Fourth Quarter 2013 Earnings of $0.95 per Share

                Net income of $374 million or $0.56 per share

Business Wire

DECATUR, Ill. -- February 4, 2014

Archer Daniels Midland Company (NYSE: ADM) today reported financial results
for the quarter ended Dec. 31, 2013. The company reported adjusted earnings
per share^1 of $0.95, up 58 percent from the $0.60 in the same period last
year. Net earnings for the quarter, which were negatively impacted by charges
related to GrainCorp and to ADM’s Brazilian sugar mill, were $374 million, or
$0.56 per share, down from $0.77 per share in the same period one year
earlier. Excluding specified items, segment operating profit^1 was $1.0
billion, up 33 percent.

“The team delivered a strong finish to the year,” said ADM Chairman and CEO
Patricia Woertz. “Lower corn costs and improved ethanol margins helped support
a significant improvement in our Corn business. Our great Oilseeds performance
was driven by our ability to meet robust global demand for meal and by
improved biodiesel results in North America and Europe. However, our Ag
Services business was impacted by the slow farmer-selling of corn and
challenges in international merchandising.

“Looking back on the year, the team made meaningful progress in our efforts to
improve cost, cash and capital management. We’re ahead of schedule in our cost
savings efforts. We completed a two-year program to unlock cash from our
balance sheet. We carefully managed capital spending, and announced a balanced
capital plan for 2014.

“Looking ahead, we continue to see strong global demand for our products and
large crop supplies. We expect continued good utilization of our North
American network until South America’s large harvest reaches global markets.”

Fourth Quarter 2013 Highlights

  *Adjusted EPS^1 of $0.95 per share excludes $0.25 per share in specified
    GrainCorp-related items, impairment charges of $0.11 per share, and other
    items totaling $0.03 per share.
  *Oilseeds Processing performed well, with profits increasing $67 million,
    including strong biodiesel results.
  *Corn Processing continued to improve. Excluding specified items, profit
    increased $296 million as lower corn costs and good domestic and export
    demand improved ethanol margins.
  *Agricultural Services profit (excluding GrainCorp-related specified items)
    declined $54 million. Operating results were diminished by lower U.S.
    merchandising profits and poor international merchandising results.
  *During the quarter, ADM announced a 26 percent increase in common-stock
    dividends, and the intent to repurchase 18 million shares by the end of
    2014.
  *During the year, ADM carefully managed capital expenditures, investing
    $957 million.

Oilseeds Earnings Strong on Very Good Refining, Packaging, Biodiesel and Other
Performance

Oilseeds operating profit in the fourth quarter was $478 million, up $67
million from the same period one year earlier.

Crushing and origination operating profit was $252 million, comparable to last
year’s strong quarter. ADM’s North America soybean crushing operations had
strong margins as they processed record volumes amid solid domestic and export
demand. South American earnings improved on strong crushing and origination
results and solid contributions from ADM’s crushing facility in Paraguay.

Refining, packaging, biodiesel and other generated a profit of $168 million
for the quarter, up

$118 million on strong performance across the food-ingredient businesses and
improved biodiesel results in North America and Europe.

Cocoa and other results declined as the peanut business delivered lower
earnings than the very strong performance in the year-ago quarter. In
addition, the cocoa business saw negative mark to market timing effects
increase by $15 million from the year-ago period. However, the underlying
cocoa business has improved.

Oilseeds results in Asia for the quarter were up $4 million from the same
period last year, principally reflecting ADM’s share of the improved results
from Wilmar International Limited.

Corn Processing Results Up Significantly, Supported by Improved Market
Conditions

Corn processing operating profit of $315 million represented an increase of
$296 million from the same period one year earlier. These numbers exclude
specified items, including an impairment related to the Brazilian sugar mill.
Corn hedge timing effects were a positive impact of $25 million, versus a
negative impact of $16 million in the year-ago period.

Sweeteners and starches results rose $68 million to $181 million, as net corn
costs improved dramatically and overall demand remained seasonally solid.

Bioproducts results increased $228 million to $134 million, with strong
domestic and international demand for ethanol driving significantly improved
margins.

Agricultural Services Impacted by Slow Farmer-Selling and Poor International
Merchandising Results

Agricultural Services operating profit in the fourth quarter was $201 million,
down $54 million from the same period one year earlier. These numbers exclude
specified items, mostly related to GrainCorp.

Merchandising and handling earnings declined $45 million to $84 million on
poor international merchandising results and lower U.S. merchandising profits
from slower farmer-selling of corn and from fewer wheat merchandising
opportunities. International merchandising results were reduced by
merchandising and execution issues.

Transportation results were flat at $47 million. Milling and other results
remained solid as the milling business continued to perform well.

Other Items of Note

The effective tax rate for the calendar year was 33 percent, compared to 30
percent in the prior year. This year’s rate was negatively impacted by
valuation allowances on deferred tax assets and a shift in the geographic mix
of earnings, offset partially by some favorable income tax adjustments related
to U.S. biodiesel tax credits. Excluding these factors, the effective tax rate
for the calendar year was 30 percent. For 2014, the company is planning its
effective tax rate at around 30 percent.

Conference Call Information

ADM will host a conference call and audio webcast Tuesday, Feb. 4, 2014, 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
31967076.

Replay of the call will be available from Feb. 5, 2014, to Feb. 11, 2014. 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 31967076. 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,
31,000 ADM employees around the globe convert oilseeds, corn, wheat and cocoa
into products for food, animal feed, industrial and energy uses. With more
than 270 processing plants, 470 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 4 and 9 for explanations and
reconciliations

                           Financial Tables Follow


Segment Operating Profit and Corporate Results
A non-GAAP financial measure
(unaudited)

                 Quarter ended                      Year ended            
                   December 31                         December 31            
(In millions)    2013       2012       Change      2013       2012       Change
Oilseeds
Processing                                                        
Operating
Profit
Crushing and       $ 252       $ 261         ($9   )     $ 835       $ 931         ($96  )
origination
Refining,
packaging,           168         50          118           454         241         213
biodiesel, and
other
Cocoa and            (10   )     36          (46   )       (33   )     276         (309  )
other
Asia                68        64        4           217       172       45    
Total Oilseeds     $ 478      $ 411      $ 67         $ 1,473    $ 1,620     ($147 )
Processing
Corn
Processing
Operating
Profit
Sweeteners and
starches
(excluding         $ 181       $ 113       $ 68          $ 520       $ 430       $ 90
timing
effects)
Bioproducts
(excluding           134         (94   )     228           380         (133  )     513
timing effects
and charges)
Corn hedge
timing               25          (16   )     41            (15   )     (9    )     (6    )
effects*
Asset
impairment           (61   )     0           (61   )       (71   )     0           (71   )
charges*
Restructuring
and exit            0         0         0           0         (10   )    10    
costs*
Total Corn         $ 279      $ 3        $ 276        $ 814      $ 278      $ 536   
Processing
Agricultural
Services
Operating
Profit
Merchandising
and handling       $ 84        $ 129         ($45  )     $ 188       $ 415         ($227 )
(excluding
charges)
GrainCorp
specified            (155  )     62          (217  )       (155  )     62          (217  )
items*
Milling and
other                70          78          (8    )       270         337         (67   )
(excluding
charge)
Asset
impairment           0           0           0             0           (146  )     146
charge*
Transportation      47        48        (1    )      77        111       (34   )
Total
Agricultural       $ 46       $ 317       ($271 )     $ 380      $ 779       ($399 )
Services
Other
Operating
Profit
Financial          $ 22       $ 77        ($55  )     $ 41       $ 91        ($50  )
Total Other        $ 22       $ 77        ($55  )     $ 41       $ 91        ($50  )
                                                                                 
Segment
Operating          $ 825       $ 808       $ 17          $ 2,708     $ 2,768       ($60  )
Profit
Memo: Adjusted
Segment            $ 1,016     $ 762       $ 254         $ 2,949     $ 2,871     $ 78
Operating
Profit*
Corporate
Results
LIFO credit        $ 0         $ 113         ($113 )     $ 225       $ 3         $ 222
(charge)
Interest             (94   )     (112  )     18            (408  )     (445  )     37
expense - net
Unallocated
corporate            (92   )     (70   )     (22   )       (331  )     (274  )     (57   )
costs
Other charges        (57   )     (73   )     16            (147  )     (144  )     (3    )
Minority
interest and        41        36        5           (23   )    73        (96   )
other
Total               ($202 )    ($106 )    ($96  )      ($684 )    ($787 )   $ 103   
Corporate
Earnings
Before Income      $ 623      $ 702       ($79  )     $ 2,024    $ 1,981    $ 43    
Taxes
                                                                                         

*Adjusted segment operating equals segment operating profit adjusted for
specified items.

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             Year ended
                           December 31                 December 30
                           2013        2012           2013        2012
                           (in millions, except per share amounts)
                                                                 
Net sales and other        $ 24,143     $ 24,921       $ 89,804     $ 90,559
operating income
Cost of products sold       22,973     23,925       85,915     86,936 
Gross profit                 1,170        996            3,889        3,623
Selling, general, and
administrative               442          479            1,759        1,665
expenses
Asset impairment             236          0              259          231
charges and exit costs
Equity in (earnings)
losses of                    (149   )     (142   )       (411   )     (476   )
unconsolidated
affiliates
Interest income              (34    )     (29    )       (102   )     (109   )
Interest expense             95           107            413          445
Other (income) expense      (43    )    (121   )      (53    )    (114   )
- net
Earnings before income       623          702            2,024        1,981
taxes
Income taxes                (246   )    (192   )      (670   )    (589   )
Net earnings including
noncontrolling               377          510            1,354        1,392
interests
Less: Net earnings
(losses) attributable       3          0            12         17     
to noncontrolling
interests
Net earnings               $ 374       $ 510         $ 1,342     $ 1,375  
attributable to ADM
                                                                    
Diluted earnings per       $ 0.56       $ 0.77         $ 2.02       $ 2.08
common share
                                                                    
Average number of            663          661            663          662
shares outstanding
                                                                    
                                                                    
Other (income) expense
- net consists of:
Net gain on marketable
securities                   ($1    )     ($4    )       ($8    )     ($15   )
transactions
Gain on sale of assets       (14    )     (46    )       (41    )     (64    )
Debt/buyback exchange        0            5              0            5
Gain on interest in          0            (62    )       0            (62    )
GrainCorp
Loss on Australian
foreign exchange             15           0              40           0
hedges
Other - net                 (43    )    (14    )      (44    )    22     
                            ($43   )    ($121  )      ($53   )    ($114  )

Summary of Financial Condition
(unaudited)

                                               December 31,   December 31,
                                                 2013           2012
                                                 (in millions)
                                                                  
NET INVESTMENT IN
Cash and cash equivalents                        $   3,121        $   1,714
Short-term marketable securities                     433              576
Operating working capital (a)                        10,841           13,563
Property, plant, and equipment                       10,137           10,123
Investments in and advances to affiliates            3,300            3,170
Long-term marketable securities                      508              717
Other non-current assets                            1,237           1,364
                                                 $   29,577       $   31,227
                                                                  
FINANCED BY
Short-term debt                                  $   358          $   2,816
Long-term debt, including current maturities         6,512            6,724
Deferred liabilities                                 2,553            2,556
Shareholders' equity                                20,154          19,131
                                                 $   29,577       $   31,227
                                                                  

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

Summary of Cash Flows
(unaudited)

                                                  Year ended
                                                    December 31
                                                    2013         2012
                                                    (in millions)
Operating Activities                                            
Net earnings                                        $ 1,354        $ 1,392
Depreciation and amortization                         909            869
Asset impairment charges                              259            176
Other - net                                           (229   )       (20    )
Changes in operating assets and liabilities          2,933        (85    )
Total Operating Activities                            5,226          2,332
Investing Activities
Purchases of property, plant and equipment            (913   )       (1,240 )
Net assets of businesses acquired                     (44    )       (61    )
Marketable securities - net                           104            (445   )
Other investing activities                           276          585    
Total Investing Activities                            (577   )       (1,161 )
Financing Activities
Long-term debt borrowings                             23             112
Long-term debt payments                               (275   )       (1,608 )
Net borrowings (payments) under lines of credit       (2,461 )       1,933
Debt repayment premium and costs                      (1     )       (209   )
Purchases of treasury stock                           (101   )       (100   )
Cash dividends                                        (501   )       (461   )
Other                                                74           12     
Total Financing Activities                            (3,242 )       (321   )
Increase in cash and cash equivalents                 1,407          850
Cash and cash equivalents - beginning of period      1,714        864    
Cash and cash equivalents - end of period           $ 3,121       $ 1,714  
                                                                   

Segment Operating Analysis
(unaudited)

                                 Quarter ended         Year ended
                                   December 31             December 31
                                   2013      2012         2013      2012
                                   (in '000s metric tons)
                                                                   
Processed volumes
Oilseeds                             8,840      8,406        31,768     31,820
Corn                                 6,374      6,026        23,688     24,517
Milling and Cocoa                   1,862     1,813       7,226     7,023
Total processed volumes             17,076    16,245      62,682    63,360
                                                                      
                                                                      
                                   Quarter ended           Year ended
                                   December 31             December 31
                                    2013     2012        2013     2012
                                   (in millions)
                                                                      
Net sales and other operating
income
Oilseeds Processing                $ 8,188    $ 8,364      $ 34,883   $ 35,430
Corn Processing                      3,055      3,041        13,139     11,830
Agricultural Services                12,699     13,485       41,480     43,159
Other                               201       31          302       140
Total net sales and other          $ 24,143   $ 24,921     $ 89,804   $ 90,559
operating income
                                                                      

Adjusted Earnings Per Share
A non-GAAP financial measure
(unaudited)

                             Quarter Ended           Year ended
                               December 31               December 31
                               2013       2012          2013       2012
Reported EPS (fully            $ 0.56     $ 0.77        $ 2.02     $ 2.08
diluted)
Adjustments:
LIFO (credit) charge (a)         -           (0.11 )       (0.21 )     -
GrainCorp-related charges        0.25        (0.07 )       0.28        (0.07 )
(gains) (b)
Asset impairment charges         0.11        -             0.13        0.16
(c)
FCPA charges (d)                 -           -             0.06        -
Pension settlements (e)          -           0.07          -           0.07
Gain on sale of assets (f)       -           (0.04 )       -           (0.04 )
Restructuring and exit           0.01        -             0.01        0.08
costs (g)
Tax impacts:
Valuation allowance (h)          0.12        -             0.12        -
U.S. biodiesel credits (i)       (0.13 )     -             (0.08 )     -
Effective tax rate               0.03        (0.03 )       -           -
adjustment (j)
Brazil income tax               -         0.01        -         0.02  
remeasurement (k)
Sub-total adjustments           0.39      (0.17 )      0.31      0.22  
Adjusted earnings per          $ 0.95     $ 0.60       $ 2.33     $ 2.30  
share (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.
      Certain charges (gains) related to the company’s interest in GrainCorp,
(b)   including current quarter impairment charge (effectively taxed at a zero
      rate) and other losses and gains for the current and prior periods, tax
      effected using applicable tax rates.
      Asset impairment charges recognized in the period related to certain
(c)   fixed assets and investments, tax effected using applicable tax rates.
      Current-period charges primarily relate to Brazilian sugar-milling
      assets. Year-ago period charges primarily relate to Gruma.
      Charges, net of estimated tax, related to settlements with government
(d)   agencies pertaining to potential violations of anti-corruption
      practices.
(e)   Expense related to pension settlements, tax effected using applicable
      tax rates.
      Gains on the sales of certain of the company’s assets, net of estimated
(f)   tax. Exchange membership interests were disposed of in the quarter
      ending Dec. 31, 2012.
(g)   Restructuring and exit costs, tax effected using applicable tax rates.
      Valuation allowance on certain deferred tax assets. Current-period
(h)   charges relate to net operating loss carry-forwards of certain
      international subsidiaries.
(i)   Income tax benefit recognized in the current period related U.S.
      biodiesel blending credits in prior periods.
(j)   Impact to EPS due to the change in annual effective tax rate on prior
      year-to-date earnings.
(k)   Tax impact of foreign-exchange remeasurement of certain Brazilian assets
      associated with the 2012 change in fiscal reporting periods.
      

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
David Weintraub, 217-424-5413
or
Investor Relations
Case McGee, 217-451-8286
 
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