ADM posts Q4 2013 net income of US$374 million

Archer Daniels Midland Company (ADM) reported financial results for the quarter ended December 31, 2013, with adjusted earnings per share of US$0.95, up 58% from the US$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 US$374 million, or US$0.56 per share, down from US$0.77 per share in the same period one year earlier. Excluding specified items, segment operating profit was US$1.0 billion, up 33%.

"The team delivered a strong finish to the year," said ADM chairman and chief executive officer 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."

During the fourth quarter 2013 the company''s adjusted earnings per share (EPS) of US$0.95 per share excludes US$0.25 per share in specified GrainCorp-related items, impairment charges of US$0.11 per share, and other items totalling US$0.03 per share. Oilseeds Processing performed well, with profits increasing US$67 million, including strong biodiesel results.

Corn Processing continued to improve. Excluding specified items, profit increased US$296 million as lower corn costs and good domestic and export demand improved ethanol margins. Agricultural Services profit (excluding GrainCorp-related specified items) declined US$54 million. Operating results were diminished by lower US merchandising profits and poor international merchandising results.

During the quarter, ADM announced a 26% increase in common-stock dividends, and the intent to repurchase 18 million shares by the end of 2014. The company likewise carefully managed capital expenditures, investing US$957 million.

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

Crushing and origination operating profit was US$252 million, comparable to last year''s strong quarter. ADM''s North America soy 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.

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

Corn processing operating profit of US$315 million represented an increase of US$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 US$25 million, versus a negative impact of US$16 million in the year-ago period.

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

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