EX-99.1 2 pressrelease.htm PRESS RELEASE press release
 
 
 
Archer Daniels Midland Company
4666 Faries Parkway
Decatur, Il 62526
News Release 
 
FOR IMMEDIATE RELEASE                                                                                         October 29, 2004
 
ARCHER DANIELS MIDLAND REPORTS FIRST QUARTER RESULTS
 
Decatur, IL — October 29, 2004 — Archer Daniels Midland (NYSE: ADM)
 
t   Net earnings for the quarter ended September 30, 2004 increased 77 % to $ 266 million - $ .41 per share from $ 150 million - $ .23 per share last year.
t   First quarter segment operating profit increased 14 % to $ 339 million from $ 297 million last year.
·   Oilseeds Processing earnings increased on improved processing results in North America and Europe.
·   Corn Processing earnings declined as improved Bioproducts results were offset by the impact of higher net corn costs.
·   Agricultural Services earnings increased on improved North American origination and transportation results.
·   Other segment operating earnings increased from improved Food and Feed Ingredients results. Financial earnings from our private equity funds declined.
 
s Financial Highlights
(Amounts in thousands, except per share data and percentages)
 
THREE MONTHS ENDED
    
 
      
9/30/2004
  
9/30/2003
  
% CHANGE
Net sales and other operating income
    
$
8,972,411
  
$
7,967,902
    
13%
 
Segment operating profit
    
$
338,672
  
$
296,575
    
14%
 
Net earnings
    
$
266,297
  
$
150,181
    
77%
 
Earnings per share
    
$
0.41
  
$
0.23
    
78%
 
Average number of shares outstanding
      
652,325
    
645,132
    
  1%
 
 
 
“Record harvests in North America are nearly complete. Reduced prices for grain and oilseeds improved the Company’s liquidity and contributed to the continuation of strong operating results. Our management team continues to enhance the capabilities of our global network to build long-term shareholder value.”
 
G. Allen Andreas, Chairman and Chief Executive
 
     
 

Archer Daniels Midland
Page 2
 
Discussion of Operations
 
Net earnings for the quarter ended September 30, 2004 were $ 266 million, equal to $ .41 per share, compared to $ 150 million, equal to $ .23 per share last year, an increase of 77%.

Segment operating profit for the quarter ended September 30, 2004 increased $ 42 million to $ 339 million as operating profit improvements were realized in all major segments except the Corn Processing segment. Oilseeds Processing operating earnings increased to $ 91 million from $ 68 million last year as improved North American and European operating results were partially offset by decreased operating results in our Asian operations. Corn Processing operating earnings declined to $ 103 million from $ 107 million last year. Bioproducts results improved to $ 48 million from $ 18 million last year as higher ethanol and feed ingredient bioproduct selling prices more than offset higher net corn costs. Sweeteners and Starches were negatively impacted by higher net corn costs resulting in earnings of $ 55 million compared to earnings of $ 89 million last year. Agricultural Services operating earnings increased to $ 51 million from $ 43 million last year as improvements in North American origination and transportation operating results more than offset a decline from the prior year’s strong global grain merchandising results. Other segment operating earnings increased to $ 93 million from $ 79 million last year. Food and Feed Ingredient earnings increased $ 29 million to $ 89 million due to improved operating results of our Cocoa operations and improved earnings of the GRUMA corn flour venture. Financial operations declined $ 15 million primarily due to a decrease in results of our private equity fund investments. For the quarter, Corporate improved to $ 47 million of income this year from $ 79 million of expense last year due primarily to a $ 116 million credit from the effect of changing commodity prices on LIFO inventory valuations compared to a LIFO charge of $ 8 million last year.
 
Conference Call Information
Archer Daniels Midland will host a conference call and audio Web cast to discuss first quarter results at 10:00 a.m. Central Daylight Time on October 29, 2004. To listen by phone, dial 888-639-3004 or 706-679-8315, no access code is required. Digital replay of the call will be available on October 29, 2004 approximately 2 hours after the call and ending on November 8, 2004 at 10:59 p.m. CST. To access this replay, dial 800-642-1687 or 706-645-9291 and enter access code: 1032038. To listen to a live broadcast via the Internet go to: http://www.admworld.com/webcast/. A replay of the Web cast will be available for 10 days on the www.admworld.com Web site.
 
Archer Daniels Midland Company (ADM) is a world leader in agricultural processing. ADM is one of the world's largest processors of soybeans, corn, wheat and cocoa. ADM is also a leader in the production of soy meal and oil, ethanol, corn sweeteners and flour. In addition, ADM produces value-added food and feed ingredients. Headquartered in Decatur, Illinois, ADM has over 26,000 employees, more than 250 processing plants and net sales for the fiscal year ended June 30, 2004 of $36.2 billion. Additional information can be found on ADM's Web site at http://www.admworld.com.
 
Contacts:
  
Brian Peterson
Dwight Grimestad
Senior Vice President, Corporate Affairs
Vice President, Investor Relations
217/424-5413
217/424-4586

(Financial Tables Follow)
 

 
     
October 29, 2004
      
     
ARCHER DANIELS MIDLAND COMPANY
      
CONSOLIDATED STATEMENTS OF EARNINGS
      
(unaudited)
      
   
Three months ended
     

September 30, 

  
     
2004
2003
  
   
(in thousands, except per share amounts) 
               
Net sales and other operating income
  
$
8,972,411
  
$
7,967,902
  
Cost of products sold
    
8,308,979
    
7,514,148
 
Gross profit
    
663,432
    
453,754
 
Selling, general and administrative expenses
    
251,509
    
231,796
 
Other expense - net
    
25,986
    
4,304
 
Earnings before income taxes
    
385,937
    
217,654
 
Income taxes
    
119,640
    
67,473
 
Net earnings
 
$
266,297
  
$
150,181
  
               
Basic and diluted earnings per common share
  
$
0.41
  
$
0.23
  
Average number of shares outstanding
    
652,325
    
645,132
 
               
Other expense - net consists of:
              
Interest expense
  
$
79,049
  
$
83,044
  
Investment income
    
(30,835
)
  
(28,301
)
Net (gain) on marketable securities transactions
    
(7
)
  
(1,092
)
Equity in (earnings) of unconsolidated affiliates
    
(20,893
)
  
(43,294
)
Other - net
    
(1,328
)
  
(6,053
)
   
$
25,986
  
$
4,304
  
             
Operating profit by segment is as follows:
          
Oilseeds Processing
 
$
91,273
  
$
67,830
  
Corn Processing
             
Sweeteners and Starches
   
54,880
    
88,860
  
Bioproducts
   
48,193
    
18,437
  
Total Corn Processing
    
103,073
    
107,297
  
Agricultural Services
    
51,272
    
42,849
  
Other
             
Food and Feed Ingredients
    
89,239
    
59,998
  
Financial
    
3,815
    
18,601
  
Total Other
    
93,054
    
78,599
  
Total segment operating profit
    
338,672
    
296,575
  
Corporate
   
47,265
    
(78,921
)
Earnings before income taxes
  
$
385,937
  
$
217,654
  
 
 
     
October 29, 2004
          
           
ARCHER DANIELS MIDLAND COMPANY
          
SUMMARY OF FINANCIAL CONDITION
          
(unaudited)
          
     
September 30,
2004
June 30,
2004
(in thousands)
NET INVESTMENT IN
              
Working capital
  
$
4,872,121
  
$
5,520,066
  
Property, plant, and equipment
    
5,239,996
    
5,254,738
  
Investments in and advances to affiliates
    
1,883,017
    
1,832,619
  
Long-term marketable securities
    
1,134,320
    
1,161,388
  
Other non current assets
    
781,737
    
781,080
  
   
$
13,911,191
  
$
14,549,891
  
               
FINANCED BY
              
Short-term debt
  
$
957,799
  
$
1,770,512
  
Long-term debt, including current maturites
    
3,888,850
    
3,900,670
  
Deferred liabilities
    
1,161,086
    
1,180,493
  
Shareholders' equity
    
7,903,456
    
7,698,216
  
   
$
13,911,191
  
$
14,549,891
  
               
SUMMARY OF CASH FLOWS
              
(unaudited)
              
   
Three Months Ended
September 30,
2004
2003
  
 
(in thousands)
Operating activities
              
Net earnings
  
$
266,297
  
$
150,181
  
Depreciation
    
167,447
    
166,133
  
Other
    
76,556
    
(40,681
 ) 
Changes in operating assets and liabilities
    
488,919
    
(119,492
)
Total Operating Activities
    
999,219
    
156,141
  
Investing Activities
              
Purchases of property, plant and equipment
    
(141,993
)
  
(108,602
)
Net assets of businesses acquired
    
(6,797
)
  
(53,015
)
Other investing activities
    
(6,205
)
  
151,273
  
Total Investing Activities
    
(154,995
)
  
(10,344
)
Financing Activities
              
Long-term borrowings
    
132
    
2,646
  
Long-term debt payments
    
(15,835
)
  
(15,441
)
Net payments under lines of credit
    
(817,804
)
  
(91,040
)
Purchases of treasury stock
    
(16
)
  
(3,969
)
Cash dividends
    
(49,029
)
  
(38,842
)
Proceeds from exercises of stock options
    
5,345
    
1,872
  
Total Financing Activities
    
(877,207
)
  
(144,774
)
Increase (decrease) in cash and cash equivalents
    
(32,983
)
  
1,023
  
Cash and cash equivalents beginning of period
    
540,207
    
764,959
  
Cash and cash equivalents end of period
  
$
507,224
  
$
765,982