EX-99.1 2 c59865ex99-1.txt PRESS RELEASE DATED 1/19/01 1 EXHIBIT 99.1 FOR IMMEDIATE RELEASE JANUARY 19, 2001 ARCHER DANIELS MIDLAND REPORTS SECOND QUARTER RESULTS DECATUR, IL -- JANUARY 19, 2001 -- ARCHER DANIELS MIDLAND (NYSE: ADM) o SECOND QUARTER EARNINGS PER SHARE WERE $0.20, UP FROM $0.16 IN LAST YEAR'S SECOND QUARTER. - Earnings from operations increased 11% to $229 million compared with the year-ago quarter. - Results were driven primarily by improvements in ethanol, feed and cocoa product categories. o EFFORTS TO IMPROVE ASSET UTILIZATION AND REDUCE COSTS ARE HAVING A POSITIVE IMPACT ON RESULTS. - Feed: last year's restructuring contributed to substantially improved results. - Cocoa: plant closings and production shifts among plants are improving productivity. - Oilseed crushing: ADM's capacity reductions during 2000 are increasing asset utilization.
SECOND QUARTER AND SIX-MONTH HIGHLIGHTS (Amounts in thousands, except per share data and percentages) ------------------------------- -------------------------- --------- -------------------------- -------- SECOND QUARTER ENDED % SIX MONTHS ENDED % 12/31/00 12/31/99 Change 12/31/00 12/31/99 Change ------------------------------- ------------- ------------ --------- ------------- ------------ -------- Net Sales and Other Operating Income $4,940,999 $4,615,421 7% $9,575,783 $9,226,687 4% Earnings from Operations $ 228,865 $ 206,797 11% $ 343,450 $ 308,382 11% Net Earnings $ 124,607 $ 101,920 22% $ 234,036 $ 138,287 69% Earnings per Share (1) $ 0.20 $ 0.16 25% $ 0.37 $ 0.22 68% Average Shares Outstanding 633,402 639,210 (1)% 632,992 640,489 (1)% ------------------------------- ---------- ---------- ----- ---------- ---------- ----- (1) Includes net gains from sales of investments $ 0.00 $ 0.01 $ 0.12 $ 0.01 ------------------------------- ---------- ---------- ----- ---------- ---------- -----
================================================================================ "We are encouraged by our progress in the second quarter, especially in our core operations. Ongoing initiatives to rationalize capacity and shift production among our plants are not only increasing our asset utilization, they're having a positive impact on market conditions as well. Looking ahead, ADM's outlook is buoyed by current improvement in several key markets and intensified efforts to strengthen the returns of our businesses." -- G. Allen Andreas, Chairman and Chief Executive ================================================================================ -MORE- 2 Archer Daniels Midland Page 2 SECOND QUARTER RESULTS Net earnings for the second quarter ended December 31, 2000 were $125 million or $0.20 per share, compared with $102 million or $0.16 per share in last year's second quarter. Second quarter earnings from operations increased 11% to $229 million, compared with $207 million in last year's second quarter. The increase was driven by improvements in ethanol, feed, and cocoa product categories, although results were negatively impacted by increased energy costs. During the second quarter, feed improved considerably due primarily to last year's restructuring, which resulted in reduced costs, lower headcount and streamlined operations. Demand continued to be strong for ethanol, mainly as a result of an ongoing market shift from MTBE to ethanol for use as a gasoline additive. Second quarter results were reduced by weak industrywide corn sweetener prices, although in recent weeks new contract prices have improved. Cocoa profitability increased, resulting from both stronger product demand and restructuring efforts over the past two years to reduce capacity, shift production and streamline ADM's product offering. Fundamentals in oilseed crushing improved as soybean product demand rose in key international markets, driven by improving Asian economies and greater use of soybean meal in Europe to feed livestock due to concerns about Mad Cow disease. Oilseed crushing margins were also strengthened by ADM's reductions in capacity and shifts in production among plants. SIX-MONTH RESULTS Net earnings for the six months ended December 31, 2000 were $234 million or $0.37 per share, compared with $138 million or $0.22 per share in last year's six-month period. Six-month earnings from operations increased 11% to $344 million, up from $308 million in the year-ago period. Six month earnings ended December 31, 2000 included net gains from sales of investments of $0.12 per share, compared to $0.01 per share in the six months ended December 31,1999. CONFERENCE CALL INFORMATION Archer Daniels Midland will hold a conference call to discuss second quarter results at 1:00 pm CDT on January 19, 2001. To participate in the live conference call on listen-only mode, please dial 800-305-1078 at least five minutes before the call begins. To listen to a live broadcast via the Internet, please access the ADM Web site at http://www.admworld.com . A replay will be available on ADM's Web site for approximately 90 days. -MORE- 3 Archer Daniels Midland Page 3 Archer Daniels Midland (ADM) is a world leader in agricultural processing. The company is the world's largest processor of soybeans, corn, wheat and cocoa. ADM is also a leader in soy meal and oil, ethanol, high fructose corn syrup (HFCS), and flour. In addition, ADM is building a position in such value-added products as food additives and nutraceuticals (such as Vitamin E and sterols). Headquartered in Decatur, Illinois, ADM is listed on the New York Stock Exchange under the ticker symbol ADM. Additional information can be found on ADM's Web site at http://www.admworld.com. Some of the above comments constitute forward-looking statements that reflect management's current views and estimates of future economic circumstances, industry conditions, Company performance, and financial results. The statements are based on many assumptions and factors including availability and prices of raw materials, product pricing, competitive environment and related market conditions, operating efficiencies, access to capital, and actions of governments. Factors that could cause or contribute to such differences include, but are not limited to, those discussed in the company's Form 10-K for the fiscal year ended June 30, 2000. Any changes in such assumptions of factors could produce significantly different results. CONTACTS: Larry Cunningham Dwight Grimestad Senior Vice President Corporate Affairs Vice President, Investor 217/424-5413 Relations 217/424-4586 (FINANCIAL TABLE FOLLOWS) 4 Archer Daniels Midland Page 4 ARCHER DANIELS MIDLAND COMPANY CONSOLIDATED STATEMENTS OF EARNINGS (unaudited)
Three months ended December 31 Six months ended December 31 2000 1999 2000 1999 ------------ ------------- ------------- ------------- (in thousands, except per share amounts) Net sales and other operating income * $ 4,940,999 $ 4,615,421 $ 9,575,783 $ 9,226,687 Cost of products sold and other operating costs 4,524,691 4,209,148 8,875,567 8,548,094 ------------ ------------ ------------- ------------- Gross Profit 416,308 406,273 700,216 678,593 Selling, general and administrative expenses 187,443 199,476 356,766 370,211 ------------ ------------ ------------- ------------- Earnings from operations 228,865 206,797 343,450 308,382 Other income (expense) (44,262) (53,534) (42,658) (100,433) ------------ ------------ ------------- ------------- Earnings before income taxes 184,603 153,263 300,792 207,949 Income taxes 59,996 51,343 66,756 69,662 ------------ ------------ ------------ ------------- Net earnings $ 124,607 $ 101,920 $ 234,036 $ 138,287 ============ ============ ============ ============= Basic and diluted earnings per common share $ 0.20 $ 0.16 $ 0.37 $ 0.22 Average number of common shares outstanding 633,402 639,210 632,992 640,489 ============ ============ ============ ============= Other income (expense) consists of: Investment income $ 43,414 $ 31,237 $ 79,732 $ 62,084 Interest expense (99,470) (99,519) (200,670) (184,958) Net gain (loss) on marketable securities transactions 562 6,685 (25,148) 12,677 Equity in earnings (losses) of affiliates 10,258 5,634 95,414 5,474 Other 974 2,429 8,014 4,290 ------------ ------------ ------------ ------------- $ (44,262) $ (53,534) $ (42,658) $ (100,433) ============ ============ ============ =============
* Effective Fiscal 2001, the Company adopted Emerging Issues Task Force Issue #99-19, "Reporting Revenue Gross as a Principal versus Net as an Agent." The adoption of this issue results in the Company reporting the total sales value of grain merchandised, in lieu of net margins from grain merchandised, in the "Net sales and other operating income" category. The "Gross profit" category is unchanged as costs related to the grain merchandised are now reported in the "Cost of products sold and other operating costs" category. Prior year amounts have been reclassified to conform to this change. ###