ADM reports adjusted third quarter earnings

Commodity trading company Archer Daniels Midland (ADM) has reported financial results for the quarter ending 30 September 2013.

It reported adjusted earnings per share (EPS) of $0.46 (€0.33), down from $0.53 in the same period last year. ADM put this adjusted EPS decrease primarily due to lower agricultural services operating profit.

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 was $606 million, down 6% when excluding an impairment charge from the year-ago quarter.

‘The team delivered solid operating results overall, despite the lingering effects of the 2012 US drought,’ says ADM 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 network to meet strong demand from customers around the world.’

ADM list the highlights of its third quarter 2013 report as:

• Adjusted EPS of $0.46 excludes approximately $298 million in pretax LIFO credits, or $0.28 per share, and other items totalling $0.02 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 US 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.