For the quarter ended March 31, 2014, Archer Daniels Midland (ADM) Company reported adjusted earnings per share (EPS) of US$0.55, up from US$0.46 in the same period last year.

 

Net earnings for the quarter were US$267 million, or US$0.40 per share, comparable to the US$0.41 per share in the same period one year earlier. Segment operating profit was US$691 million, up 10% from the year-ago period. Adjusted segment operating profit was US$780 million, up 17% from the year-ago period.

 

"Our businesses delivered mixed results in the first quarter," said ADM chairman and chief executive officer Patricia Woertz. "Our Ag Services business again generated weak results due to a low margin environment as well as logistics and weather challenges in the US. Continued strong performance in corn was supported by the robust ethanol market. And the sustained, solid results in Oilseeds were driven by good margins and volumes in North and South American soy crushing."

 

Adjusted EPS of US$0.55 excludes approximately US$159 million in pre-tax last in first out (LIFO) charges, or US$0.15 per share. Oilseeds Processing operating profit increased US$50 million, as North American soy crushing had strong utilisation amid good meal demand, and South American soy crushing and origination benefited from large harvests, good demand, and an improved logistics environment.

 

Corn processing operating profit increased US$64 million on strong results from ethanol. Agricultural Services operating profit increased US$2 million, as market conditions and higher costs limited merchandising and handling margins.

 

Oilseeds operating profit of US$358 million represented an increase of US$50 million from the same period one year earlier. These numbers exclude a charge for cocoa hedge timing effects of US$24 million, or (US$0.03) per share, versus a gain of US$5 million in the year-ago period.

 

Crushing and origination operating profit was essentially flat, at US$161 million. North American soy crushing operations benefited from good crush capacity utilisation in a favourable margin environment driven by strong domestic and export meal demand. That was offset by lower results in North American soft seeds. In South America, soy crushing operations saw improved utilisation, and the logistics network saw increased volumes as it began moving the large harvest to world markets in an improved environment. European results were essentially flat.

 

Corn processing operating profit of US$261 million represented an increase of US$64 million from the same period one year earlier. These numbers exclude negative timing effects of US$65 million, or (US$0.06) per share, versus a loss of US$44 million, or (US$0.04) per share, in the year-ago period.

 

Agricultural Services operating profit was US$153 million, similar to the year-ago period. Results for the quarter include the recovery of about US$20 million of a previously established loss provision.

 

Merchandising and handling earnings declined US$17 million to US$69 million, as margins were limited both by inverted corn, soy and wheat markets and by increased costs that were exacerbated by weather.

 

Milling and other results declined US$8 million to US$51 million as a lack of the seasonal carry in the wheat futures market reduced grain and feed merchandising opportunities.