EX-99.1 2 exhibit991.htm EXHIBIT 99.1 PRESS RELEASE Exhibit 99.1 Press Release

 
 
 
Archer Daniels Midland Company
4666 Faries Parkway
Decatur, Il 62526

News Release 
 
 FOR IMMEDIATE RELEASE 
 May 1, 2007
 
ARCHER DANIELS MIDLAND REPORTS THIRD QUARTER RESULTS
 
Decatur, IL — May 1, 2007 — Archer Daniels Midland (NYSE: ADM)
 
►
Net earnings for the quarter ended March 31, 2007 increased 4 % to $ 363 million - $ .56 per share from $ 348 million - $ .53 per share last year. Net earnings for the quarter ended March 31, 2007 includes a gain of $ 33 million realized on the sale of the Company’s Arkady food ingredient business.
 
“We performed well in a challenging quarter,” said ADM Chairman and CEO Patricia A. Woertz. “We are particularly pleased with continued strong performance in our corn processing segment. Our results also benefited from actions to strategically align our portfolio and our outlook on future opportunities remains quite strong.”
 
►
Third quarter segment operating profit increased 8 % to $ 593 million from $ 549 million last year.
·  
Oilseeds Processing operating profit decreased due to lower softseed and biodiesel processing margins.
·  
Corn Processing operating profit increased due to lower operating costs and increased ethanol and sweetener selling prices partially offset by increased net corn costs.
·  
Agricultural Services operating profit decreased due to lower global merchandising and handling results.
·  
Other segment operating profit increased due to a gain realized upon the sale of the Arkady food ingredient business.
 
► Financial Highlights
(Amounts in thousands, except per share data and percentages)
THREE MONTHS ENDED
 
NINE MONTHS ENDED
   
3/31/07
    
3/31/06
    
% CHANGE
    
3/31/07
    
3/31/06
    
% CHANGE
  
Net sales and other operating income
$
11,381,150
  
$
9,122,841
    
25%
 
$
31,804,111
  
$
27,048,775
    
  18%
 
Segment operating profit
$
593,135
  
$
549,492
    
  8%
 
$
2,008,106
  
$
1,423,905
    
  41%
 
Net earnings
$
362,891
  
$
347,796
    
  4%
 
$
1,206,904
  
$
901,811
    
  34%
 
Earnings per share
$
.56
  
$
.53
    
  6%
 
$
1.83
  
$
1.38
    
  33%
 
Average number of shares outstanding
  
653,177
    
657,130
    
 (1)%
 
  
658,232
    
655,469
    
-
  
 
Archer Daniels Midland Company
Page 2
 
Discussion of Operations

Net earnings for the quarter ended March 31, 2007 were $ 363 million, or $ .56 per share, compared to $ 348 million, or $ .53 per share, last year. Net earnings for the nine months ended March 31, 2007 were $ 1.2 billion, or $ 1.83 per share, compared to $ 902 million, or $ 1.38 per share, last year.

Segment operating profit increased $ 44 million to $ 593 million for the quarter and increased $ 584 million to $ 2 billion for the nine months.

Oilseeds Processing operating profits decreased $ 8 million to $ 169 million for the quarter and increased $ 126 million to $ 530 million for the nine months. Improved gross margins in all geographic regions for the nine months contributed to the increase although the current quarter declined on reduced softseed and biodiesel processing margins. Results for the quarter and nine months ended March 31, 2006 included a $4 million charge for abandonment and write down of long lived assets.

Corn Processing operating profits increased $ 33 million to $ 252 million for the quarter and increased $ 286 million to $ 878 million for the nine months. Lower operating costs and increased starch, sweetener and ethanol selling prices contributed to the earnings improvement and were partially offset by increasing net corn costs. Fiscal 2006 third quarter results included a gain of $ 8 million upon the sale of a citric acid plant. Fiscal 2006 nine months included a charge of $ 14 million (net of the $ 8 million gain) related to the closure of this citric acid plant.

Agricultural Services operating profits decreased $ 38 million to $ 41 million for the quarter due to a $ 39 million decrease in global merchandising and handling results. For the nine months, operating profits increased $ 82 million to $ 275 million due principally to improved earnings of global merchandising and handling operations and improved operating results of transportation operations.

Other segment operating profit increased $ 57 million to $ 132 million for the quarter and increased $ 89 million to $ 325 million for the nine months principally due to a gain of $ 53 million realized upon the sale of the Company’s Arkady food ingredient business. Fiscal 2006 third quarter and nine month results included $ 15 million of cost related to the sale and discontinuance of the Irish feed business. Results for the nine months ended March 31, 2006 also included a $ 32 million asset impairment charge.

Significant components of Corporate results are as follows:

   
Three months ended 
  
Nine months ended
  
   
March 31,
    
March 31,
 
   
2007
    
2006
    
2007
    
2006
  
 
(in millions)
                         
LIFO income (charge)
$
(23
)
$
1
  
$
(146
)
$
13
  
Investment income (expense)
  
22
    
(6
)
  
52
    
(23
)
Gain on security transactions
  
9
    
-
    
11
    
29
  
Brazilian transactional tax credit
  
-
    
-
    
-
    
19
  
Corporate costs
  
(51
)
  
(51
)
  
(169
)
  
(178
)
Other
  
6
    
(1
)
  
4
    
(11
)
Total Corporate
$
(37
)
$
(57
)
$
(248
)
$
(151
)
 
Results for the nine months ended March 31, 2006 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 third quarter results and provide a Company update at 8:00 a.m. Central Daylight Time (CDT) on Tuesday, May 1, 2007. To listen by phone, dial 866-543-6403 or 617-213-8896; the access code is 45110940. Digital replay of the call will be available beginning on May 1, 2007 from 10:00 a.m. CDT and ending on May 8, 2007. To access this replay, dial 888-286-8010 or 617-801-6888 and enter access code: 35594026. 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:
  
Victoria Podesta
Dwight Grimestad
Vice President - Corporate Communications
Vice President - Investor Relations
217/424-5413
217/424-4586
 

 

 
(Financial Tables Follow)
 

May 1, 2007
ARCHER DANIELS MIDLAND COMPANY
CONSOLIDATED STATEMENTS OF EARNINGS
(unaudited)
 
Three months ended
 Nine months ended
 
March 31,
  
March 31,
  
   
2007
    
2006
    
2007
    
2006
  
 
(in thousands, except per share amounts)
                         
Net sales and other operating income
$
11,381,150
  
$
9,122,841
  
$
31,804,111
  
$
27,048,775
  
Cost of products sold
  
10,635,240
    
8,352,109
    
29,284,703
    
24,911,864
  
Gross profit
  
745,910
    
770,732
    
2,519,408
    
2,136,911
  
Selling, general and administrative expenses
  
294,037
    
297,295
    
902,083
    
896,142
  
Other (income) expense - net
  
(104,331
)
  
(19,526
)
  
(142,859
)
  
(32,630
)
Earnings before income taxes
  
556,204
    
492,963
    
1,760,184
    
1,273,399
  
Income taxes
  
193,313
    
145,167
    
553,280
    
371,588
  
Net earnings
$
362,891
  
$
347,796
  
$
1,206,904
  
$
901,811
  
Diluted earnings per common share
$
.56
  
$
.53
  
$
1.83
  
$
1.38
  
Average number of shares outstanding
  
653,177
    
657,130
    
658,232
    
655,469
  
                         
Other (income) expense - net consists of:
                        
Interest expense
$
115,467
  
$
90,446
  
$
323,589
  
$
263,344
  
Investment income
  
(66,352
)
  
(48,295
)
  
(191,683
)
  
(146,143
)
Net (gain) loss on marketable securities
transactions
  
(13,484
)
  
282
    
(24,244
)
  
(27,952
)
Equity in earnings of
unconsolidated affiliates
  
(84,975
)
  
(54,930
)
  
(207,576
)
  
(113,604
)
Other - net
  
(54,987
)
  
(7,029
)
  
(42,945
)
  
(8,275
)
 
$
(104,331
)
$
(19,526
)
$
(142,859
)
$
(32,630
)
                         
Operating profit by segment is as follows:
                        
Oilseeds Processing (1)
$
168,516
  
$
176,550
  
$
530,166
  
$
403,742
  
Corn Processing
                        
Sweeteners and Starches
  
126,636
    
113,223
    
385,738
    
319,747
  
Bioproducts (2)
  
125,176
    
105,469
    
492,032
    
271,735
  
Total Corn Processing (2)
  
251,812
    
218,692
    
877,770
    
591,482
  
Agricultural Services
 
40,540
    
78,601
    
274,675
    
192,216
  
Other  
                        
Food, Feed & Industrial (1) (3)
  
97,328
    
34,764
    
188,706
    
138,895
  
Financial
  
34,939
    
40,885
    
136,789
    
97,570
  
Total Other (1) (3)
  
132,267
    
75,649
    
325,495
    
236,465
  
Total segment operating profit
  
593,135
    
549,492
    
2,008,106
    
1,423,905
  
Corporate  (4)
  
(36,931
)
  
(56,529
)
  
(247,922
)
  
(150,506
)
Earnings before income taxes
$
556,204
  
$
492,963
  
$
1,760,184
  
$
1,273,399
  

(1)  
Fiscal 2006 third quarter results include a charge for the abandonment and write down of long-lived assets of $ 4 million in Oilseeds Processing. Fiscal 2006 nine month results include a charge for the abandonment and write down of long-lived assets of $ 4 million in Oilseeds Processing and $ 32 million in Food, Feed and Industrial.
 (2)
Fiscal 2006 included a gain of $ 8 million in the quarter and a $ 14 million net charge for the nine months related to a closure and sale of a citric acid plant.
 (3)
Fiscal 2007 third quarter and nine months results includes a gain of $ 53 million realized upon the sale of the Company’s Arkady food ingredient business. Fiscal 2006 third quarter and nine months included $ 15 million of cost related to the sale and discontinuance of the Irish feed business.
 (4)
Includes LIFO charge of $ 23 million for the quarter and $ 146 million for the nine months ended March 31, 2007. Includes LIFO income of $ 1 million for the quarter and $ 13 million for the nine months ended March 31, 2006.

May 1, 2007

ARCHER DANIELS MIDLAND COMPANY
SUMMARY OF FINANCIAL CONDITION
(unaudited)

   
March 31, 2007
    
June 30, 2006
  
 
(in thousands)
             
NET INVESTMENT IN
            
Working capital
$
8,156,443
  
$
6,290,697
  
Property, plant and equipment
  
5,822,959
    
5,293,032
  
Investments in and advances to affiliates
  
2,050,740
    
1,985,662
  
Long-term marketable securities
  
1,175,227
    
1,110,177
  
Other non-current assets
  
1,059,132
    
1,053,882
  
 
$
18,264,501
  
$
15,733,450
  
             
FINANCED BY
            
Short-term debt
$
1,142,765
  
$
549,419
  
Long-term debt, including current maturities
  
5,229,147
    
4,130,091
  
Deferred liabilities
  
1,213,240
    
1,247,060
  
Shareholders' equity
  
10,679,349
    
9,806,880
  
 
$
18,264,501
  
$
15,733,450
  
             
 
 
 
             
SUMMARY OF CASH FLOWS
            
(unaudited)
            
 
Nine Months Ended
March 31,
   
2007
    
2006
  
 
(in thousands)
Operating activities
            
Net earnings
$
1,206,904
  
$
901,811
  
Depreciation
 
519,776
    
490,780
  
Asset abandonments
  
1,393
    
27,013
  
Other - net
  
4,014
    
(268,700
)
Changes in operating assets and liabilities
  
(1,766,382
)
  
(251,224
)
Total Operating Activities
  
(34,295
)
  
899,680
  
Investing Activities
            
Purchases of property, plant and equipment
  
(843,592
)
  
(533,494
)
Net assets of businesses acquired
  
(92,372
)
  
(168,520
)
Other investing activities
  
(14,475
)
  
(182,293
)
Total Investing Activities
  
(950,439
)
  
(884,307
)
Financing Activities
            
Long-term borrowings
  
1,165,633
    
603,874
  
Long-term debt payments
  
(131,360
)
  
(262,042
)
Net borrowings under lines of credit
  
570,315
    
196,982
  
Purchases of treasury stock
  
(532,851
)
  
(74
)
Purchase of convertible note hedge
  
(299,460
)
  
-
  
Sale of stock warrants
  
170,085
    
-
  
Cash dividends
  
(206,543
)
  
(176,433
)
Other - net
  
32,588
    
18,128
  
Total Financing Activities
  
768,407
    
380,435
  
Increase (decrease) in cash and cash equivalents
  
(216,327
)
  
395,808
  
Cash and cash equivalents beginning of period
  
1,112,853
    
522,420
  
Cash and cash equivalents end of period
$
896,526
  
$
918,228