EX-99.1 2 exhibit991.htm EXHIBIT 99.1 Exhibit 99.1

 
 
 
Archer Daniels Midland Company
4666 Faries Parkway
Decatur, Il 62526

News Release 
 
FOR IMMEDIATE RELEASE
 February 1, 2007
 
 
ARCHER DANIELS MIDLAND REPORTS SECOND QUARTER RESULTS
 
Decatur, IL — February 1, 2007 — Archer Daniels Midland (NYSE: ADM)
 
►
Net earnings for the quarter ended December 31, 2006 increased 20 % to $ 441 million - $ .67 per share from $ 368 million - $ .56 per share last year.
 
“We had record results for the quarter and six months” said ADM Chief Executive Officer and President, Patricia A. Woertz. “We are particularly pleased with the strong performance from all segments. And, we continue to make progress along our strategic path. Our future opportunities are great.”
 
►
Second quarter segment operating profit increased 46 % to $ 767 million from $ 524 million last year.
·  
Oilseeds processing operating profit increased on improved market conditions in all geographic regions.
 ·   Corn Processing operating profit increased due to increased ethanol and sweetener selling prices partially offset by increased net corn costs.
·  
Agricultural Services operating profit increased due to improved global merchandising and transportation results.
·  
Other segment operating profit increased primarily due to improved Financial results.
 
► Financial Highlights
(Amounts in thousands, except per share data and percentages)
   
THREE MONTHS ENDED
 
SIX MONTHS ENDED
 
 
 
12/31/06
 
 
12/31/05
 
% CHANGE
 
 
12/31/06
 
 
12/31/05
 
% CHANGE
  
Net sales and other operating income
  
$
10,976,039
  
$
9,298,985
    
18%
 
$
20,422,961
  
$
17,925,934
    
14%
 
Segment operating profit
  
$
767,037
  
$
523,895
    
46%
 
$
1,414,971
  
$
874,413
    
62%
 
Net earnings
  
$
441,268
  
$
367,677
    
20%
 
$
844,013
  
$
554,015
    
52%
 
Earnings per share
  
$
0.67
  
$
0.56
    
20%
 
$
1.28
  
$
0.85
    
51%
 
Average number of shares outstanding
    
660,548
    
655,508
    
  1%
 
  
660,705
    
654,656
    
  1%
 
 

Archer Daniels Midland Company
Page 2
 
Discussion of Operations

Net earnings for the quarter ended December 31, 2006 were $ 441 million, or $ .67 per share, compared to $ 368 million, or $ .56 per share, last year. Net earnings for the six months ended December 31, 2006 were $ 844 million, or   $ 1.28 per share, compared to $ 554 million, or $ .85 per share, last year.

Segment operating profit increased $ 243 million to $ 767 million for the quarter and increased $ 541 million to $ 1.4 billion for the six months.

Oilseeds Processing operating profits increased $ 64 million to $ 192 million for the quarter and increased $ 134 million to $ 362 million for the six months due principally to improved gross margins in all geographic regions.

Corn Processing operating profits increased $ 99 million to $ 335 million for the quarter and increased $ 253 million to $ 626 million for the six months. Increased starch, sweetener and ethanol selling prices contributed to the earnings improvement and were partially offset by increasing net corn costs. Results for the quarter and six months ended December 31, 2005 included $ 15 million of employee severance costs associated with the closure of a citric acid plant.

Agricultural Services operating profits increased $ 29 million to $ 123 million for the quarter and increased $ 121 million to $ 234 million for the six months due principally to improved earnings of global grain merchandising operations and improved operating results of transportation operations.

Other segment operating profit increased $ 51 million to $ 117 million for the quarter and increased $ 32 million to    
$ 193 million for the six months principally due to increased earnings of Financial operations. Results for the quarter and six months ended December 31, 2005 included a $ 31 million asset impairment charge.

Significant components of Corporate results are as follows:

     
Three months ended
    
Six months ended
  
     
December 31,
    
 December 31,
  
 
 
 
2006
 
 
2005
 
 
2006
 
 
2005
 
 
 
(in millions)
                           
LIFO income (charge)
  
$
(107
)
$
3
  
$
(124
)
$
12
  
Investment income (expense)
    
15
    
(17
)
  
26
    
(39
)
Gain on security transactions
    
1
    
23
    
1
    
29
  
Brazilian transactional tax credit
    
-
    
19
    
-
    
19
  
Corporate costs
    
(49
)
  
(50
)
  
(119
)
  
(127
)
Other
    
2
    
5
    
5
    
12
  
Total Corporate
  
$
(138
)
$
(17
)
$
(211
)
$
(94
)
 
Results for the quarter and six months ended December 31, 2005 included a $36 million tax credit related to the adjustment of state and federal income taxes.
Archer Daniels Midland Company
Page 3
 
Conference Call Information
Archer Daniels Midland will host a conference call and audio Web cast to discuss second quarter results and provide a Company update at 8:00 a.m. Central Standard Time (CST) on Thursday, February 1, 2007. To listen by phone, dial 800-237-9752 or 617-847-8706; the access code is 98914486. Digital replay of the call will be available beginning on February 1, 2007 from 10:00 a.m. CST and ending on February 8, 2007. To access this replay, dial 888-286-8010 or 617-801-6888 and enter access code: 89861968. In addition, a financial summary slide presentation will be available to download approximately 60 minutes prior to the start of the call. To listen to the call and to download the financial summary presentation via the Internet, go to: http://www.admworld.com/webcast/. A replay of the Web cast will be available on the ADM World Website.

Archer Daniels Midland Company (ADM) is the world leader in BioEnergy and has a premier position in the agricultural processing value chain. ADM is one of the world’s largest processors of soybeans, corn, wheat and cocoa. ADM is a leading manufacturer of biodiesel, ethanol, soybean oil and meal, corn sweeteners, flour and other value-added food and feed ingredients. Headquartered in Decatur, Illinois, ADM has over 26,000 employees, more than 240 processing plants and net sales for the fiscal year ended June 30, 2006 of $37 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)
 

February 1, 2007

ARCHER DANIELS MIDLAND COMPANY
CONSOLIDATED STATEMENTS OF EARNINGS
(unaudited)
     
Three months ended 
 
 
Six months ended 
 
 
 
 
December 31, 
 
 
December 31, 
  
     
2006
 
 
2005
 
 
2006
 
 
2005
  
     
(in thousands, except per share amounts)
  
                           
Net sales and other operating income
  
$
10,976,039
  
$
9,298,985
  
$
20,422,961
  
$
17,925,934
  
Cost of products sold
    
10,068,119
    
8,515,517
    
18,649,463
    
16,559,755
  
Gross profit
    
907,920
    
783,468
    
1,773,498
    
1,366,179
  
Selling, general and administrative expenses
    
298,211
    
294,392
    
608,046
    
598,847
  
Other (income) expense - net
    
(19,018
)
  
(17,628
)
  
(38,528
)
  
(13,104
)
Earnings before income taxes
    
628,727
    
506,704
    
1,203,980
    
780,436
  
Income taxes
    
187,459
    
139,027
    
359,967
    
226,421
  
Net earnings
   $ 
441,268
  
$
367,677
  
$
844,013
  
$
554,015
  
Diluted earnings per common share
  
$
.67
  
$
0.56
  
$
1.28
  
$
0.85
  
Average number of shares outstanding
    
660,548
    
655,508
    
660,705
    
654,656
  
                           
Other (income) expense - net consists of:
                          
Interest expense
  
$
111,071
  
$
86,609
  
$
208,122
  
$
172,898
  
Investment income
    
(64,622
)
  
(60,074
)
  
(125,331
)
  
(97,848
)
Net gain on marketable securities
transactions
    
(6,487
)
  
(22,975
)
  
(10,760
)
  
(28,234
)
Equity in earnings of
unconsolidated affiliates
    
(65,986
)
  
(22,994
)
  
(122,601
)
  
(58,674
)
Other - net
    
7,006
    
1,806
    
12,042
    
(1,246
)
   
$
(19,018
)
$
(17,628
)
$
(38,528
)
$
(13,104
)
Operating profit by segment is as follows:
                          
Oilseeds Processing
  
$
192,005
  
$
128,077
  
$
361,650
  
$
227,192
  
Corn Processing
                          
Sweeteners and Starches
    
146,188
    
114,043
    
259,102
    
206,524
  
Bioproducts (1)
    
189,272
    
122,489
    
366,856
    
166,266
  
Total Corn Processing (1)
    
335,460
    
236,532
    
625,958
    
372,790
  
Agricultural Services
   
122,836
    
93,606
    
234,135
    
113,615
  
Other  
                          
Food, Feed & Industrial (2)
    
53,209
    
34,902
    
91,378
    
104,131
  
Financial
    
63,527
    
30,778
    
101,850
    
56,685
  
Total Other (2)
    
116,736
    
65,680
    
193,228
    
160,816
  
Total segment operating profit
    
767,037
    
523,895
    
1,414,971
    
874,413
  
Corporate  (3) (4)
    
(138,310
)
  
(17,191
)
  
(210,991
)
  
(93,977
)
Earnings before income taxes
  
$
628,727
  
$
506,704
  
$
1,203,980
  
$
780,436
  

(1)   Includes severance costs of $15 million related to the closure of a citric acid plant for the quarter and six months
        ended December 31, 2005.
(2)
Includes a charge for the abandonment and write down of long-lived assets of $ 31 million for the quarter and six months ended December 31, 2005.
(3)
Includes LIFO charge of $ 107 million for the quarter and $ 124 million for the six months ended December 31, 2006. Includes LIFO income of $ 3 million for the quarter and $ 12 million for the six months ended December 31, 2005.
(4)
Includes Brazilian transactional tax credits of $ 19 million for the quarter and six months ended December 31, 2005.


February 1, 2007

 
ARCHER DANIELS MIDLAND COMPANY
SUMMARY OF FINANCIAL CONDITION
(unaudited)
 
     
December 31, 2006
 
 
June 30, 2006
 
 
 
(in thousands)
               
NET INVESTMENT IN
              
Working capital
  
$
8,022,926
  
$
6,290,697
  
Property, plant and equipment
    
5,697,770
    
5,293,032
  
Investments in and advances to affiliates
    
1,980,163
    
1,985,662
  
Long-term marketable securities
    
1,098,424
    
1,110,177
  
Other non-current assets
    
1,076,357
    
1,053,882
  
   
$
17,875,640
  
$
15,733,450
  
               
FINANCED BY
              
Short-term debt
  
$
1,746,245
  
$
549,419
  
Long-term debt, including current maturities
    
4,077,549
    
4,130,091
  
Deferred liabilities
    
1,279,162
    
1,247,060
  
Shareholders' equity
    
10,772,684
    
9,806,880
  
   
$
17,875,640
  
$
15,733,450
  
               
 
 
 
 
SUMMARY OF CASH FLOWS
              
(unaudited)
              
   
Six Months Ended
 
 
December 31,
 
 
 
2006
 
 
2005
 
 
 
(in thousands)
Operating activities
              
Net earnings
  
$
844,013
  
$
554,015
  
Depreciation
   
344,929
    
327,265
  
Asset abandonments
    
1,393
    
22,725
  
Other - net
    
60,689
    
(227,783
)
Changes in operating assets and liabilities
    
(1,547,262
)
  
67,977
  
Total Operating Activities
    
(296,238
)
  
744,199
  
Investing Activities
              
Purchases of property, plant and equipment
    
(560,035
)
  
(318,450
)
Net assets of businesses acquired
    
(54,795
)
  
(91,911
)
Other investing activities
    
(204,267
)
  
(380,825
)
Total Investing Activities
    
(819,097
)
  
(791,186
)
Financing Activities
              
Long-term borrowings
    
15,424
    
598,624
  
Long-term debt payments
    
(129,678
)
  
(121,799
)
Net borrowings (payments) under lines of credit
    
1,180,394
    
(27,488
)
Purchases of treasury stock
    
(135,984
)
  
(29
)
Cash dividends
    
(131,453
)
  
(111,021
)
Other - net
    
26,559
    
10,146
  
Total Financing Activities
    
825,262
    
348,433
  
Increase (decrease) in cash and cash equivalents
    
(290,073
)
  
301,446
  
Cash and cash equivalents beginning of period
    
1,112,853
    
522,420
  
Cash and cash equivalents end of period
  
$
822,780
  
$
823,866