8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D. C.  20549

_____________

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Dateof Report (Date of earliest event reported)                February 5, 2013                                  

ARCHER-DANIELS-MIDLAND COMPANY

 (Exact name of registrant as specified in its charter)

Delaware	1-44	41-0129150
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification No.)

4666 Faries Parkway Decatur, Illinois	62526
(Address of principal executive offices)	(Zip Code)
Registrant's telephone number, including area code:(217) 424-5200

Item 2.02	Results of Operations and Financial Condition.
	On February 5, 2013, Archer-Daniels-Midland Company (ADM) issued a press release announcing quarter ended December 31, 2012 results.  A copy of such press release is attached hereto as Exhibit 99.1 and incorporated herein by reference.

Item 9.01	Financial Statements and Exhibits.
(c) Exhibits	The following exhibit is furnished herewith:
99.1	Press release dated February 5, 2013 announcing quarter ended December 31, 2012 results.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

ARCHER-DANIELS-MIDLAND COMPANY

Date: February 5, 2013	By	/s/ Marschall I. Smith
		Marschall I. Smith Senior Vice President, Secretary and   General Counsel

EXHIBIT INDEX

Exhibit	Description
99.1	Press Release dated February 5, 2013

EX-99.1

    Archer Daniels Midland Company 4666 Faries Parkway Decatur, Ill.  62526  

ADM Reports Second Quarter 2012.5 Earnings of $510 Million or $0.77 per Share

Adjusted EPS of $0.60, up 18 percent from year-ago quarter

Good operating results despite challenging conditions caused by U.S. drought

DECATUR, Ill., Feb. 5, 2013 – Archer Daniels Midland Company (NYSE: ADM) today reported financial results for the quarter ended Dec. 31, 2012. The company reported net earnings for the quarter of $510 million, or $0.77 per share, up from $0.12 per share in the same period one year earlier. Adjusted earnings per share1 were $0.60, up from $0.51 in the same period last year. Segment operating profit1 was $808 million.

“The ADM team managed well despite challenges from the U.S. drought and from persistent, negative margins in the ethanol industry,” said ADM Chairman and CEO Patricia Woertz. “Our results in Oilseeds and Agricultural Services demonstrated the ability of our people to use our global asset network to prepare for and manage in a range of market conditions.

“In North America, we fully utilized our oilseeds crushing capacity to meet strong global demand, and we adjusted our transportation and origination network to move goods efficiently despite constrained river traffic and a smaller corn crop. In South America, we leveraged our origination, transportation and export facilities to move the record corn crop to world markets. And, in Europe, we made some operational changes, and the market responded to reduced imports.

“During our abbreviated fiscal year, we drove meaningful improvements in capital, costs and cash to enhance our future competitiveness. We continued taking action to improve underperforming businesses. As part of our ongoing portfolio management, we sold $570 million of non-core investments. And, through a companywide focus, we unlocked more than $1 billion in working cash.”

Second Quarter 2012.5 Highlights

·   Adjusted EPS of $0.60 excludes approximately $113 million in pretax LIFO gains ($0.11 per share) and other items that net to about $0.06 per share.

·   Oilseeds Processing profit increased $202 million, with year-over-year improvements in crushing and origination results in all regions.

·   Excluding last year’s $339 million asset impairment charge, Corn Processing profit decreased $207 million, due to ongoing weakness in industry ethanol margins.

·   Agricultural Services profit rose $77 million, as solid U.S. soybean exports, improved international merchandising and a gain on ADM’s investment in GrainCorp benefitted results.

·   Net debt balances declined to $7.2 billion, the lowest level since June 2010, as the benefits of the company wide focus on unlocking cash began to be realized.

 

    

1 Non-GAAP financial measures, see pages 5 and 12 for explanations and reconciliations

Adjusted EPS of 60 Cents, up 9 Cents

Adjusted EPS increased primarily due to higher segment operating profit.

This fiscal year’s effective tax rate of 30 percent was in line with the same six-month period last year.

Oilseeds Earnings Improve Across All Three Regions

Oilseeds operating profit in the second quarter was $411 million, up $202 million from the same period one year earlier. Results included unfavorable mark-to-market timing effects of about $50 million (about $0.05 per share), compared to an unfavorable impact of about $110 million in the year-ago quarter.

Crushing and origination operating profit was $261 million, up $140 million from the year-ago quarter on strong improvements in all three geographies. ADM’s U.S. soybean operations ran at record capacity during the quarter and delivered very strong results amid good domestic and export meal demand. In South America, ADM was well prepared to move the record corn harvest. And in Europe, operational changes and reduced imports from South America drove improved results.

Refining, packaging, biodiesel and other generated a profit of $50 million for the quarter, down $27 million, due to weakness in biodiesel margins in the U.S. and Europe.

Cocoa and other results increased $66 million. Weaker cocoa press margins were offset by the absence of last year’s significant negative mark-to-market impacts.

Oilseeds results in Asia for the quarter were up $23 million from the prior year’s second quarter, principally reflecting ADM’s share of the results from its equity investee Wilmar International Limited.

Corn Processing Results Weak on Continued Ethanol Industry Challenges

Corn processing operating profit of $3 million represented a decline of $207 million from the same period one year earlier, when excluding the year-ago quarter’s $339 million asset impairment.

Sweeteners and starches operating profit increased $22 million to $97 million, as tight sweetener industry capacity and higher corn costs supported higher year-over-year selling prices.

Excluding last year’s $339 million asset impairment charge, bioproducts results decreased $229 million to a loss of $94 million. Weak domestic gasoline demand and unfavorable global ethanol trade flows resulted in continued excess industry capacity, keeping ethanol margins negative.

Agricultural Services Solid Despite Impact of U.S. Drought

Agricultural Services operating profit was $317 million, up $77 million from the same period one year earlier. Results included a $62 million gain on ADM’s investment in GrainCorp.

Excluding the gain on GrainCorp, merchandising and handling earnings rose $23 million to $129 million, as solid U.S. soybean exports and improved international merchandising results more than offset lower U.S. corn origination and export volumes.

Transportation results were solid, despite challenges from low water on the Mississippi River. Results decreased $5 million to $48 million as increased barge operating expenses were partially offset by higher freight rates.

Milling and other results remained steady, as the milling business continued to perform well.

Other Financial Results Improve

Operating profit from ADM’s Other Financial businesses was $77 million, up $55 million, with asset disposal gains and favorable captive insurance loss reserve adjustments.

Conference Call Information

ADM will host a conference call and audio webcast Tuesday, Feb. 5, 2013, at 8 a.m. Central Time to discuss financial results and provide a company update. A financial summary slide presentation will be available to download approximately 60 minutes prior to the call.

To listen to the call via the Internet or to download the slide presentation, go to www.adm.com/webcast. To listen by telephone, dial (888) 522-5398 in the U.S. or (706) 902-2121 if calling from outside the U.S. The access code is 85998249.

Replay of the call will be available from Feb. 6, 2013 to Feb. 12, 2013. To listen to the replay by telephone, dial (855) 859-2056 in the U.S. or (404) 537-3406 if calling from outside the U.S. The access code is 85998249. The replay will also be available online for an extended period of time at www.adm.com/webcast.

About ADM

For more than a century, the people of Archer Daniels Midland Company (NYSE: ADM) have transformed crops into products that serve vital needs. Today, 30,000 ADM employees around the globe convert oilseeds, corn, wheat and cocoa into products for food, animal feed, industrial and energy uses. With more than 265 processing plants, 460 crop procurement facilities, and the world’s premier crop transportation network, ADM helps connect the harvest to the home in more than 140 countries. For more information about ADM and its products, visit www.adm.com.

Archer Daniels Midland Company

Media Relations Contact

David Weintraub

217-424-5413

Investor Relations Contact

Ruth Ann Wisener

217-451-8286

Financial Tables Follow

Segment Operating Profit and Corporate Results

A non-GAAP financial measure (unaudited)

	Quarter ended December 31								Four quarters ended December 31
	2012		2011			Change			2012		2011		Change
	(in millions)
Oilseeds Processing Operating Profit
Crushing and origination	$	261	$	121		$	140		$	931	$	855	$	76
Refining, packaging, biodiesel   and other		50		77			(27	)		241		315		(74	)
Cocoa and other		36		(30	)		66			276		88		188
Asia		64		41			23			172		178		(6	)
Total Oilseeds Processing	$	411	$	209		$	202		$	1,620	$	1,436	$	184

Corn Processing Operating Profit
Sweeteners and starches	$	97		$	75		$	22		$	421		$	165		$	256
Bioproducts (excluding charges)		(94	)		135			(229	)		(133	)		559			(692	)
Restructuring and Exit Costs		-			(339	)		339			(10	)		(339	)		329
Total Corn Processing	$	3		$	(129	)	$	132		$	278		$	385		$	(107	)

Agricultural Services Operating Profit
Merchandising and handling    (excluding item)	$	129	$	106	$	23		$	415		$	654	$	(239	)
Gain on interest in GrainCorp		62		-		62			62			-		62
Transportation		48		53		(5	)		111			112		(1	)
Milling and other (excluding items)		78		81		(3	)		337			314		23
Gain on sale of Gruma assets		-		-		-			-			78		(78	)
Asset impairment charge		-		-		-			(146	)		-		(146	)
Total Agricultural Services	$	317	$	240	$	77		$	779		$	1,158	$	(379	)

Other Operating Profit
Financial	$	77	$	22	$	55	$	91	$	46	$	45
Total Other	$	77	$	22	$	55	$	91	$	46	$	45
Segment Operating Profit	$	808	$	342	$	466	$	2,768	$	3,025	$	(257	)

Corporate Results
LIFO credit (charge)	$	113		$	(59	)	$	172		$	3		$	76		$	(73	)
Interest expense -  net		(112	)		(99	)		(13	)		(445	)		(428	)		(17	)
Unallocated corporate costs		(70	)		(71	)		1			(274	)		(342	)		68
Employee-related exit costs		-			-			-			(71	)		-			(71	)
Gains on interest rate swaps		-			-			-			-			6			(6	)
Debt buyback/exchange		(5	)		-			(5	)		(5	)		(12	)		7
Pension settlements		(68	)		-			(68	)		(68	)		-			(68	)
Other		36			8			28			73			11			62
Total Corporate	$	(106	)	$	(221	)	$	115		$	(787	)	$	(689	)		(98	)
Earnings Before Income Taxes	$	702		$	121		$	581		$	1,981		$	2,336		$	(355	)

Total segment operating profit is ADM’s consolidated income from operations before income tax that excludes certain corporate items. Management believes that segment operating profit is a useful measure of ADM’s performance because it provides investors information about ADM’s business unit performance excluding certain corporate overhead costs. Total segment operating profit is a non-GAAP financial measure and is not intended to replace earnings before income tax, the most directly comparable GAAP financial measure. Total segment operating profit is not a measure of consolidated operating results under U.S. GAAP and should not be considered as an alternative to income before income taxes or any other measure of consolidated operating results under U.S. GAAP.

Quarterly Segment Operating Profit and Corporate Results

A non-GAAP financial measure (unaudited)

													Four															Fiscal
	Quarter ended												Quarters			Quarter ended												Year
	Mar'12			June'12			Sep'12			Dec'12			2012			Sep'11			Dec'11			Mar'12			June'12			2012
	(in millions)
Oilseeds Processing   Operating Profit
Crushing and origination	$	264		$	150		$	256		$	261		$	931		$	106		$	121		$	264		$	150		$	641
Refining, packaging, biodiesel,   and other		79			84			28			50			241			55			77			79			84			295
Cocoa and other		159			52			29			36			276			2			(30	)		159			52			183
Asia		40			45			23			64			172			57			41			40			45			183
	$	542		$	331		$	336		$	411		$	1,620		$	220		$	209		$	542		$	331		$	1,302
Corn Processing   Operating Profit
Sweeteners and starches	$	95		$	135		$	94		$	97		$	421		$	30		$	75		$	95		$	135		$	335
Bioproducts   (excluding charges)		48			(61	)		(26	)		(94	)		(133	)		153			135			48			(61	)		275
Restructuring and exit costs		(10	)		-			-			-			(10	)		-			(339	)		(10	)		-			(349	)
	$	133		$	74		$	68		$	3		$	278		$	183		$	(129	)	$	133		$	74		$	261
Agricultural Services   Operating Profit
Merchandising and handling    (excluding item)	$	148		$	30		$	108		$	129		$	415		$	209		$	106		$	148		$	30		$	493
Gain on interest in GrainCorp		-			-			-			62			62			-			-			-			-			-
Transportation		27			17			19			48			111			28			53			27			17			125
Milling and other   (excluding charge)		86			76			97			78			337			86			81			86			76			329
Asset impairment charge		-			-			(146	)		-			(146	)		-			-			-			-			-
	$	261		$	123		$	78		$	317		$	779		$	323		$	240		$	261		$	123		$	947
Other Operating Profit
Financial	$	(18	)	$	16		$	16		$	77		$	91		$	(5	)	$	22		$	(18	)	$	16		$	15
	$	(18	)	$	16		$	16		$	77		$	91		$	(5	)	$	22		$	(18	)	$	16		$	15
Segment Operating Profit	$	918		$	544		$	498		$	808		$	2,768		$	721		$	342		$	918		$	544		$	2,525
Corporate Results
LIFO credit (charge)	$	(107	)	$	50		$	(53	)	$	113		$	3		$	126		$	(59	)	$	(107	)	$	50		$	10
Interest expense - net		(114	)		(112	)		(107	)		(112	)		(445	)		(98	)		(99	)		(114	)		(112	)		(423	)
Unallocated corporate costs		(67	)		(67	)		(70	)		(70	)		(274	)		(84	)		(71	)		(67	)		(67	)		(289	)
Employee-related exit costs		(71	)		-			-			-			(71	)		-			-			(71	)		-			(71	)
Debt buyback/exchange		-			-			-			(5	)		(5	)		(4	)		-			-			-			(4	)
Pension settlements		-			-			-			(68	)		(68	)		-			-			-			-			-
Other		9			1			27			36			73			(1	)		8			9			1			17
	$	(350	)	$	(128	)	$	(203	)	$	(106	)	$	(787	)	$	(61	)	$	(221	)	$	(350	)	$	(128	)	$	(760	)
Earnings Before   Income Taxes	$	568		$	416		$	295		$	702		$	1,981		$	660		$	121		$	568		$	416		$	1,765

Total segment operating profit is ADM’s consolidated income from operations before income tax that excludes certain corporate items. Management believes that segment operating profit is a useful measure of ADM’s performance because it provides investors information about ADM’s business unit performance excluding certain corporate overhead costs. Total segment operating profit is a non-GAAP financial measure and is not intended to replace earnings before income tax, the most directly comparable GAAP financial measure. Total segment operating profit is not a measure of consolidated operating results under U.S. GAAP and should not be considered as an alternative to income before income taxes or any other measure of consolidated operating results under U.S. GAAP.

Consolidated Statements of Earnings

(unaudited)

	Quarter ended						Six months ended
	December 31						December 31
	2012			2011			2012			2011
	(in millions, except per share amounts)
Net sales and other operating income	$	24,921		$	23,306		$	46,729		$	45,208
Cost of products sold		23,925			22,493			44,927			43,361
Gross profit		996			813			1,802			1,847
Selling, general and administrative expenses		(479	)		(423	)		(869	)		(830	)
Equity in earnings of unconsolidated    affiliates		142			127			255			251
Investment income		29			22			59			62
Interest expense		(107	)		(96	)		(213	)		(209	)
Asset impairment, exit and restructuring    costs		-			(352	)		(146	)		(352	)
Other income (expense) – net		121			30			109			12
Earnings before income taxes		702			121			997			781
Income taxes		(192	)		(38	)		(303	)		(237	)
Net earnings including noncontrolling interests		510			83			694			544
Less: Net earnings (losses) attributable to noncontrolling interests		-			3			2			4
Net earnings attributable to ADM	$	510		$	80		$	692		$	540
Diluted earnings per common share	$	0.77		$	0.12		$	1.05		$	0.81
Average number of shares outstanding		661			667			661			670
Other income (expense) - net consists of:
Net gain on marketable securities       transactions	$	43		$	11		$	45		$	16
Gain on interest in GrainCorp		62			-			62			-
Debt buyback/exchange costs		(5	)		-			(5	)		(12	)
Other – net		21			19			7			8
	$	121		$	30		$	109		$	12

Summary of Financial Condition

(unaudited)

	December 31,  2012		December 31,  2011
	(in millions)
NET INVESTMENT IN
Cash and cash equivalents	$	1,714	$	864
Short-term marketable securities		576		594
Operating working capital (a)		13,563		13,373
Property, plant, and equipment		10,123		9,601
Investments in and advances to affiliates		3,170		3,211
Long-term marketable securities		717		352
Other non-current assets		1,364		1,313
	$	31,227	$	29,308
FINANCED BY
Short-term debt	$	2,816	$	834
Long-term debt, including current maturities		6,724		8,364
Deferred liabilities		2,556		1,945
Shareholders’ equity		19,131		18,165
	$	31,227	$	29,308

(a) Current assets (excluding cash and cash equivalents and short-term marketable securities) less current liabilities (excluding short-term debt and current maturities of long-term debt)

Summary of Cash Flows
(unaudited)
	Six Months Ended
	December 31
	2012			2011
	(in millions)
Operating Activities
Net earnings	$	694		$	544
Depreciation and amortization		435			414
Asset impairment charge		146			350
Other – net		(4	)		102
Changes in operating assets and liabilities		1,207			1,631
Total Operating Activities		2,478			3,041
Investing Activities
Purchases of property, plant and equipment		(615	)		(852	)
Net assets of businesses acquired		(26	)		(206	)
Proceeds from sale of Gruma		450			-
Marketable securities – net		(898	)		195
Cash held in a deconsolidated entity		-			(130	)
Other investing activities		116			59
Total Investing Activities		(973	)		(934	)
Financing Activities
Long-term debt borrowings		106			91
Long-term debt payments		(1,423	)		(173	)
Net borrowings (repayments) under lines of credit		660			(1,076	)
Debt repayment premium and costs		(197	)		(32	)
Purchases of treasury stock		-			(427	)
Cash dividends		(230	)		(224	)
Other		2			(17	)
Total Financing Activities		(1,082	)		(1,858	)
Increase (decrease) in cash and cash equivalents		423			249
Cash and cash equivalents - beginning of period		1,291			615
Cash and cash equivalents - end of period	$	1,714		$	864

Segment Operating Analysis

(unaudited)

	Quarter Ended December 31				Four Quarters Ended December 31
	2012		2011		2012		2011
	(In '000 metric tons)
Processed volumes
Oilseeds		8,406		8,191		31,820		29,930
Corn		6,026		6,297		24,517		24,078
Milling and Cocoa		1,813		1,855		7,023		7,211
Total processed volumes		16,245		16,343		63,360		61,219
	Quarter Ended December 31					Four Quarters Ended December 31
		2012		2011		2012		20011
	(In millions)
Net sales and other operating income
Oilseeds Processing	$	8,364	$	8,266	$	35,430	$	33,581
Corn Processing		3,041		3,158		11,830		11,755
Agricultural Services		13,485		11,854		43,159		42,708
Other		31		28		140		111
Total net sales and other      operating income	$	24,921	$	23,306	$	90,559	$	88,155

Segment Operating Analysis

(unaudited)

	Quarter ended								Four Quarters
	Mar'12		June'12		Sept'12		Dec'12		2012
	(In '000 metric tons)
Processed volumes
Oilseeds		8,159		7,793		7,462		8,406		31,820
Corn		6,174		6,036		6,281		6,026		24,517
Milling and Cocoa		1,740		1,680		1,790		1,813		7,023
Total processed volumes		16,073		15,509		15,533		16,245		63,360
	Quarter ended								Fiscal Year
	Sept'11		Dec'11		Mar'12		June'12			2012
	(In '000 metric tons)
Processed volumes
Oilseeds		7,018		8,191		8,159		7,793		31,161
Corn		6,111		6,297		6,174		6,036		24,618
Milling and Cocoa		1,881		1,855		1,740		1,680		7,156
Total processed volumes		15,010		16,343		16,073		15,509		62,935
	Quarter ended								Four Quarters
	Mar'12		June'12		Sept'12		Dec'12			2012
	(In millions)
Net sales and other operating income
Oilseeds Processing	$	7,715	$	9,663	$	9,688	$	8,364	$	35,430
Corn Processing		2,835		2,828		3,126		3,041		11,830
Agricultural Services		10,571		10,147		8,956		13,485		43,159
Other		34		37		38		31		140
Total net sales and other operating income	$	21,155	$	22,675	$	21,808	$	24,921	$	90,559
	Quarter ended								Fiscal    Year
	Sept'11		Dec'11		Mar'12		June'12			2012
	(In millions)
Net sales and other operating income
Oilseeds Processing	$	9,071	$	8,266	$	7,715	$	9,663	$	34,715
Corn Processing		3,293		3,158		2,835		2,828		12,114
Agricultural Services		9,510		11,854		10,571		10,147		42,082
Other		28		28		34		37		127
Total net sales and other operating income	$	21,902	$	23,306	$	21,155	$	22,675	$	89,038

Adjusted Earnings Per Share

A non-GAAP financial measure
(unaudited)

	Quarter Ended					Four Quarters Ended
	December 31					December 31
	2012			2011		2012
Earnings Per Share (fully-diluted)	$	0.77		$	0.12	$	2.08
Adjustments:
LIFO charge/(credit) (a)		(0.11	)		0.06		-
Asset impairment charge – Gruma (b)		-			-		0.16
Asset impairment charge – PHA (c)		-			0.33		-
Restructuring and exit costs (d)		-			-		0.08
Gain on interest in GrainCorp (e)		(0.07	)		-		(0.07	)
Gain on sale of assets (f)		(0.04	)		-		(0.04	)
Pension settlements (g)		0.07			-		0.07
Brazil income tax remeasurement (h)		0.01			-		0.02
Adjust quarterly effective tax rate to fiscal year average (i)		(0.03	)		-		-
Sub-total adjustments		(0.17	)		0.39		0.22
Adjusted Earnings Per Share (non-GAAP)	$	0.60		$	0.51	$	2.30

(a)   The Company’s pretax changes in its LIFO reserves during the period, tax effected using the Company’s U.S. effective income tax rate.

(b)   The asset impairment charge related to the Company’s investments associated with Gruma, tax effected using the applicable U.S. and Mexican tax rates.

(c)   The asset impairment charge related to the PHA business, tax effected using the Company’s U.S. effective income tax rate.

(d)   The restructuring and exit costs related primarily to the global workforce reduction program, tax effected using the applicable U.S., European and South American tax rates.

(e)   The gain on the Company’s interest in the shares of GrainCorp, tax effected using the applicable U.S. and European tax rates.

(f)   The gain on the sale of certain of the Company’s exchange membership interests, tax effected using the Company’s U.S. effective income tax rate.

(g)   The one-time expense related to pension settlements, tax effected using the applicable U.S. and European tax rates.

(h)   The tax impact of foreign-exchange remeasurement of certain Brazilian assets.

(i)   The impact to EPS if the December 31, 2012 final effective income tax rate of 30% were used.

Adjusted EPS is ADM’s fully diluted EPS after removal of the effect on Reported EPS of certain specified items as more fully described above. Management believes that Adjusted EPS is a useful measure of ADM’s performance because it provides investors additional information about ADM’s operations allowing better evaluation of ongoing business performance. Adjusted EPS is a non-GAAP financial measure and is not intended to replace or be an alternative to EPS, the most directly comparable GAAP financial measure, or any other measures of operating results under GAAP. Earnings amounts in the tables above have been divided by the company’s diluted shares outstanding for each respective quarter in order to arrive at an adjusted EPS amount for each specified item.