exhibit991.htm

DECATUR, Ill., May 1, 2013 – Archer Daniels Midland Company (NYSE: ADM) today reported financial results for the quarter ended March 31, 2013. The company reported net earnings for the quarter of $269 million, or $0.41 per share, down from $0.60 per share in the same period one year earlier. Adjusted earnings per share1 were $0.48, down from $0.78 in the same period last year. Segment operating profit1 was $630 million.

“As expected, this was a challenging quarter, with agricultural services negatively impacted by the ongoing effects of last summer’s U.S. drought,” said ADM Chairman and CEO Patricia Woertz. “In oilseeds, our earnings were reduced by challenges in Brazil and depressed margins in cocoa. Our ethanol business improved as declining inventories supported overall industry margins, and we began to see positive results from the actions we’ve been taking to improve the profitability of that business.

“We continue to manage through tight U.S. stocks of oilseeds and grains until the North American harvest. Demand for our products remains solid, and we will continue to leverage our global origination and processing network to serve the needs of our customers worldwide.”

·	Adjusted EPS of $0.48 excludes approximately $34 million in pretax LIFO charges, or $0.03 per share, and a provision of $25 million, or $0.04 per share, related to the previously disclosed FCPA matter dating back to 2008 and earlier.

·	Corn Processing profit increased $20 million due to improved ethanol results. Sweeteners and starches results were negatively impacted by a $44 million pretax charge from corn hedge timing effects ($0.04 per share).

Oilseeds operating profit in the first quarter was $313 million, down $229 million from the same period one year earlier. Year-ago results included net favorable mark-to-market timing effects of about $60 million, while this quarter included minimal timing effects.

Crushing and origination operating profit was $156 million, down $108 million from the year-ago quarter. In North America, softseed crushing results were down from last year’s strong results as tight supplies affected seed basis and capacity utilization. North American soybean crushing results were strong in the quarter, but margins and production declined through the quarter amid weaker export meal demand and lower bean availability. In South America, higher trucking costs and reluctant farmer selling negatively impacted results. European crushing and origination results continued to recover, aided by reduced imports of North and South American meal.

Refining, packaging, biodiesel and other generated a profit of $108 million for the quarter, up $29 million, as U.S. biodiesel demand saw a modest recovery, offset by poor margin conditions in Europe. Results included about $20 million in biodiesel blender’s credits, retroactive from 2012 blending.

Cocoa and other results decreased $181 million amid weaker press margins and the absence of last year’s $72 million favorable mark-to-market timing effect. Press margins were negatively impacted by the addition of industry processing capacity, lower cocoa powder prices, and customer inventory reductions.

Corn processing operating profit of $153 million represented an increase of $20 million from the same period one year earlier. This quarter’s results included a $44 million negative timing effect related to open corn cash-flow hedges at quarter end (about $0.04 per share), up from $11 million in the same period last year.

Sweeteners and starches operating profit decreased $19 million to $76 million, and was improved when adjusted for corn hedge-program timing effects, as solid demand translated to tight sweetener industry capacity.

Bioproducts results increased $39 million to $77 million. Ethanol margins improved through the quarter as reduced industry production rates, lower levels of imports and steady domestic demand resulted in reduced inventories and improved margins. Results also benefited from actions taken by ADM to improve the performance of its ethanol business.

Milling and other results remained steady, excluding last year’s $21 million equity income from Gruma. ADM disposed of its ownership in Gruma in December 2012. The milling business continued to perform well.

ADM is in discussions with the U.S. Department of Justice and the U.S. Securities and Exchange Commission regarding a previously disclosed FCPA matter dating back to 2008 and earlier, and expects a resolution sometime this year. Based upon recent discussions, ADM believes it is appropriate to establish a provision of $25 million ($0.04 per share) to cover the potential assessments that may be imposed by these government agencies.

ADM will host a conference call and audio webcast Wednesday, May 1, 2013, at 5 p.m. Central Time to discuss financial results and provide a company update. A 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 32838804.

Replay of the call will be available from May 2, 2013, to May 8, 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 32838804. The replay will also be available online for an extended period of time at www.adm.com/webcast.

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.

	Quarter ended March 31
	2013			2012		Change
	(In millions)

Oilseeds Processing Operating Profit
Crushing and origination	$	156		$	264	$	(108	)
Refining, packaging, biodiesel and other		108			79		29
Cocoa and other		(22	)		159		(181	)
Asia		71			40		31
Total Oilseeds Processing	$	313		$	542	$	(229	)

Corn Processing Operating Profit
Sweeteners and starches	$	76	$	95		$	(19	)
Bioproducts (excluding charges)		77		48			29
Restructuring and exit costs		-		(10	)		10
Total Corn Processing	$	153	$	133		$	20

Other Operating Profit
Financial	$	13		$	(18	)	$	31
Total Other	$	13		$	(18	)	$	31

Segment Operating Profit	$	630		$	918		$	(288	)

Corporate Results
LIFO credit (charge)	$	(34	)	$	(107	)	$	73
Interest expense - net		(105	)		(114	)		9
Unallocated corporate costs		(82	)		(67	)		(15	)
Employee-related exit costs		-			(71	)		71
Other		(34	)		9			(43	)
Total Corporate	$	(255	)	$	(350	)	$	95

Earnings Before Income Taxes	$	375		$	568		$	(193	)

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.

	Quarter ended
	March 31
	2013			2012
	(In millions, except per share amounts)


Net sales and other operating income	$	21,727		$	21,155
Cost of products sold		20,971			20,147
Gross profit		756			1,008
Selling, general and administrative expenses		(436	)		(402	)
Equity in earnings of unconsolidated affiliates		137			115
Interest income		27			26
Interest expense		(106	)		(116	)
Asset impairment, exit and restructuring costs		-			(85	)
Other income (expense) – net		(3	)		22
Earnings before income taxes		375			568
Income taxes		(105	)		(163	)
Net earnings including noncontrolling interests		270			405
Less: Net earnings (losses) attributable to noncontrolling interests		1			6
Net earnings attributable to ADM	$	269		$	399

Diluted earnings per common share	$	0.41		$	0.60

Average number of shares outstanding		662			663


Other income (expense) - net consists of:
Gain on sale of assets	$	5		$	9
Net gain on marketable securities transactions		-			8
Other – net		(8	)		5
	$	(3	)	$	22

	March 31, 2013		March 31, 2012
	(in millions)
NET INVESTMENT IN
Cash and cash equivalents	$	1,448	$	818
Short-term marketable securities		183		428
Operating working capital (a)		13,581		14,962
Property, plant, and equipment		10,122		9,800
Investments in and advances to affiliates		3,252		3,385
Long-term marketable securities		683		320
Other non-current assets		1,304		1,247
	$	30,573	$	30,960

FINANCED BY
Short-term debt	$	2,358	$	1,987
Long-term debt, including current maturities		6,505		8,343
Deferred liabilities		2,734		2,079
Shareholders’ equity		18,976		18,551
	$	30,573	$	30,960

	Three Months Ended
	March 31
	2013			2012
	(in millions)
Operating Activities
Net earnings	$	270		$	405
Depreciation and amortization		227			214
Asset impairment charges		-			16
Other – net		(135	)		(116	)
Changes in operating assets and liabilities		(5	)		(1,302	)
Total Operating Activities		357			(783	)
Investing Activities
Purchases of property, plant and equipment		(248	)		(341	)
Net assets of businesses acquired		(16	)		(33	)
Marketable securities – net		391			201
Other investing activities		42			10
Total Investing Activities		169			(163	)
Financing Activities
Long-term debt borrowings		17			4
Long-term debt payments		(250	)		(51	)
Net borrowings (repayments) under lines of credit		(441	)		1,112
Purchases of treasury stock		-			(56	)
Cash dividends		(125	)		(115	)
Other		7			6
Total Financing Activities		(792	)		900
Increase (decrease) in cash and cash equivalents		(266	)		(46	)
Cash and cash equivalents - beginning of period		1,714			864
Cash and cash equivalents - end of period	$	1,448		$	818

		Quarter Ended
		March 31
		2013		2012
		(000’s of metric tons)

Processed volumes
Oilseeds			8,355		8,159
Corn			5,294		6,174
Milling and Cocoa			1,731		1,740
Total processed volumes			15,380		16,073



		Quarter Ended
		March 31
			2013		2012
	(In millions)

Net sales and other operating income
Oilseeds Processing		$	8,143	$	7,715
Corn Processing			3,053		2,835
Agricultural Services			10,500		10,571
Other			31		34
Total net sales and other
operating income		$	21,727	$	21,155

	Quarter Ended
	March 31
	2013		2012
Earnings Per Share (fully-diluted)	$	0.41	$	0.60
Adjustments:
LIFO charge/(credit) (a)		0.03		0.10
FCPA charge (b)		0.04		-
Restructuring and exit costs (c)		-		0.08
Sub-total adjustments		0.07		0.18
Adjusted Earnings Per Share (non-GAAP)	$	0.48	$	0.78

(b)	The FCPA charge related to an estimated provision for settlement with the government agencies pertaining to potential violations of anti-corruption practices, not tax effected because the Company assumed the provision is not deductible.

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.

Agricultural Services Operating Profit
Merchandising and handling	$	86	$	148	$	(62	)
Transportation		6		27		(21	)
Milling and other		59		86		(27	)
Total Agricultural Services	$	151	$	261	$	(110	)