EX-99.1 2 adm8kfy07q1ex991.htm EXHIBIT 99.1 TO ADM8KFY06Q1 PRESS RELEASE Exhibit 99.1 to adm8kfy06q1 Press Release
 
 
 
 
Archer Daniels Midland Company
4666 Faries Parkway
Decatur, Il 62526

News Release 
 
 
FOR IMMEDIATE RELEASE
 
October 31, 2006
 
ARCHER DANIELS MIDLAND REPORTS FIRST QUARTER RESULTS
 
Decatur, IL — October 31, 2006 — Archer Daniels Midland (NYSE: ADM)
 
►
Net earnings for the quarter ended September 30, 2006 more than doubled to $ 403 million - $ .61 per share from $ 186 million - $ .29 per share last year.
 
“ADM delivered near-record performance in the first quarter,” said ADM Chief Executive Officer and President, Patricia A. Woertz. “Our earnings, more than double those of a year ago, reflect strong momentum in our core businesses. However, we will continue to experience the challenges of dealing with volatile commodity prices.”
 
►
Segment operating profit for the quarter increased 85% to $ 648 million from $ 351 million last year.
·  
Oilseeds Processing operating profit increased on improved market conditions in all geographic regions.
·  
Corn Processing operating profit increased due to improved ethanol and sweetener selling prices.
·  
Agricultural Services operating profit increased due to improved global merchandising and transportation results.
·  
Other segment operating profit declined primarily due to decreased results of Food, Feed and Industrial.
 
► Financial Highlights
(Amounts in thousands, except per share data and percentages)
 
 
THREE MONTHS ENDED
      
 
9/30/2006
    
9/30/2005
    
 % CHANGE
  
Net sales and other operating income
 $
9,446,922
  
$
8,626,949
    
  10%
 
Segment operating profit
 $
647,934
  
$
350,518
    
  85%
 
Net earnings
 $
402,745
  
$
186,338
    
116%
 
Earnings per share
 $
.61
  
$
.29
    
110%
 
Average number of shares outstanding
  
660,863
    
653,805
    
    1%
 

Archer Daniels Midland
Page 2
 
 
Discussion of Operations
 
Net earnings for the quarter ended September 30, 2006 were $ 403 million, or $ .61 per share, compared to $ 186 million, or $ .29 per share, last year.

Segment operating profit increased $ 297 million to $ 648 million for the quarter from $ 351 million last year.

Oilseeds Processing operating profit increased $ 71 million to $ 170 million for the quarter as improved market conditions resulted in increased operating profits in all geographic regions.

Corn Processing operating profit increased $ 154 million to $ 290 million for the quarter as Sweetener and Starches earnings increased $ 20 million to $ 113 million and Bioproducts earnings increased $ 134 million to $ 177 million. Increased starch, sweetener and ethanol selling prices contributed to the earnings improvement.

Agricultural Services operating profits increased $ 91 million to $ 111 million due principally to improved earnings of global grain merchandising operations and improved operating results of transportation operations. In the first quarter of fiscal year 2006, the negative impact of hurricanes decreased North American origination and export operating results.

Other segment operating profit declined $ 19 million to $ 76 million for the quarter due principally to a $ 31 million decline in Food, Feed and Industrial operating results. This decline was primarily due to reduced operating results of cocoa, wheat milling and natural health and nutrition operations, partially offset by a $ 12 million improvement in operating profit of the financial operations.
 
Significant components of Corporate results are as follows (in millions):

 
Three months ended
 
September 30
 
 
2006
 
 
2005
  
             
LIFO income (charge)
 
$
(17
)
$
9
  
Other
    
(56
)
  
(86
)
    Total Corporate
  
$
(73
)
$
(77
)

Conference Call Information
 
Archer Daniels Midland will host a conference call and audio Web cast to discuss first quarter results and provide a Company update at 8:00 a.m. Central Standard Time (CST) on Tuesday, October 31, 2006. To listen by phone, dial 800-299-7098 or 617-801-9715; the access code is 60756673. Digital replay of the call will be available beginning on October 31, 2006 from 10:00 a.m. CST and ending on November 7, 2006. To access this replay, dial 888-286-8010 or 617-801-6888 and enter access code: 97811879. 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 a world leader in agricultural processing and fermentation technology. ADM is one of the world's largest processors of soybeans, corn, wheat and cocoa. ADM is also a leader in the production of soybean oil and meal, 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 240 processing plants and net sales for the fiscal year ended June 30, 2006 of $36.6 billion. Additional information can be found on ADM's Website 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 31, 2006
ARCHER DANIELS MIDLAND COMPANY
CONSOLIDATED STATEMENTS OF EARNINGS
(unaudited)
   
Three months ended
 
 
September 30
 
 
 
2006
 
 
2005
 
 
 
(in thousands, except per share amounts) 
               
Net sales and other operating income
  
$
9,446,922
  
$
8,626,949
  
Cost of products sold
    
8,581,344
    
8,044,238
  
Gross profit
    
865,578
    
582,711
  
Selling, general and administrative expenses
    
309,835
    
304,455
  
Other (income) expense - net
    
(19,510
)
  
4,524
  
Earnings before income taxes
    
575,253
    
273,732
  
Income taxes
    
172,508
    
87,394
  
Net earnings
 
$
402,745
  
$
186,338
  
               
Diluted earnings per common share
  
$
.61
  
$
0.29
  
Average number of shares outstanding
    
660,863
    
653,805
  
               
Other (income) expense - net consists of:
              
Interest expense
  
$
97,051
  
$
86,289
  
Investment income
    
(60,709
)
  
(37,774
)
Net gain on marketable securities transactions
    
(4,273
)
  
(5,259
)
Equity in earnings of unconsolidated affiliates
    
(56,615
)
  
(35,680
)
Other - net
    
5,036
    
(3,052
)
   
$
(19,510
)
$
4,524
  
               
Operating profit (loss) by segment is as follows:
              
Oilseeds Processing
 
$
169,645
  
$
99,115
  
Corn Processing
             
Sweeteners and Starches
   
112,914
    
92,481
  
Bioproducts
   
177,584
    
43,777
  
Total Corn Processing
    
290,498
    
136,258
  
Agricultural Services
    
111,299
    
20,009
  
Other
             
Food, Feed and Industrial
    
38,169
    
69,229
  
Financial
    
38,323
    
25,907
  
Total Other
    
76,492
    
95,136
  
Total segment operating profit
    
647,934
    
350,518
  
Corporate
   
(72,681
)
  
(76,786
)
Earnings before income taxes
  
$
575,253
  
$
273,732
  
October 31, 2006
ARCHER DANIELS MIDLAND COMPANY
SUMMARY OF FINANCIAL CONDITION
(unaudited)
 
   
September 30, 2006
 
 
June 30, 2006
 
 
(in thousands)
             
NET INVESTMENT IN
              
Working capital
  
$
6,764,771
  
$
6,290,697
  
Property, plant, and equipment
    
5,378,873
    
5,293,032
  
Investments in and advances to affiliates
    
2,061,651
    
1,985,662
  
Long-term marketable securities
    
1,110,308
    
1,110,177
  
Other non-current assets
    
1,041,981
    
1,053,882
  
   
$
16,357,584
  
$
15,733,450
  
               
FINANCED BY
              
Short-term debt
  
$
714,956
  
$
549,419
  
Long-term debt, including current maturities
    
4,099,971
    
4,130,091
  
Deferred liabilities
    
1,252,912
    
1,247,060
  
Shareholders' equity
    
10,289,745
    
9,806,880
  
   
$
16,357,584
  
$
15,733,450
  
 
 
 
SUMMARY OF CASH FLOWS
              
(unaudited)
              
   
Three Months Ended
   
September 30
 
 
 
2006
 
 
2005
  
   
(in thousands)
Operating activities
              
Net earnings
  
$
402,745
  
$
186,338
  
Depreciation
    
171,125
    
164,173
  
Other - net
    
(2,653
)
  
(161,882
)
Changes in operating assets and liabilities
    
(486,642
)
  
216,401
  
Total Operating Activities
    
84,575
    
405,030
  
Investing Activities
              
Purchases of property, plant and equipment
    
(251,517
)
  
(157,422
)
Net assets of businesses acquired
    
(20,195
)
  
(57,124
)
Other investing activities
    
(44,422
)
  
(62,905
)
Total Investing Activities
    
(316,134
)
  
(277,451
)
Financing Activities
              
Long-term debt borrowings
    
9,933
    
598,624
  
Long-term debt payments
    
(42,226
)
  
(102,236
)
Net borrowings under lines of credit
    
167,797
    
56,134
  
Purchases of treasury stock
    
(54
)
  
(18
)
Cash dividends
    
(65,709
)
  
(55,491
)
Proceeds from exercises of stock options
    
7,456
    
7,825
  
Total Financing Activities
    
77,197
    
504,838
  
Increase (decrease) in cash and cash equivalents
    
(154,362
)
  
632,417
  
Cash and cash equivalents - beginning of period
    
1,112,853
    
522,420
  
Cash and cash equivalents - end of period
  
$
958,491
  
$
1,154,837