ADM Notes Improved Ethanol Margins in 3rd Qtr. Results

October 29, 2013 05:55 AM



Archer Daniels Midland Company today said strength in its oilseeds business and improved ethanol margins helped to produce solid operating results, despite the linger effects of the 2013 U.S. drought. For the third quarter ended Sept. 30, 2013, the company reported adjusted earnings per share of $ 0.46, down from $0. 53 in the same period last year. 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.

Third quarter 2013 highlights:

  • Adjusted EPS of $0.46 excludes approximately $298 million in pretax LIFO credits, or $0.28 per share, and other items totaling ($0.02) cents 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 U.S. 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.


During a scheduled press conference this morning, an ADM official said he does not expect the porcine epidemic diarrhea virus (PEDV) to have a major impact on soymeal demand. This statement helped to support soybean futures. Corn was also lifted by news of improving ethanol margins.

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