World Grain - September 2015 - 20

NEWSREVIEW

ADM profits down in second quarter
CHICAGO, ILLINOIS, U.S. - Archer Daniels Midland Company (ADM) reported on
Aug. 4 that earnings for the second quarter
were $386 million, or 62¢ per share, down
27.5% from $533 million or 81¢ in the same
quarter of last year.
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reported earnings of $879 million or $1.39, up
from $800 million or $1.21 per share in the
same period a year ago.
"Our second-quarter results demonstrate
the strength and value of our geographic and
business-portfolio diversity," said Juan LuFLDQR$'0FKLHIH[HFXWLYHRI¿FHU³,QFRUQ
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robust, but record industry production limited
margins. This was partially offset by strong
results from our corn sweeteners and starches
business."
Milling and other results improved $25 million to $67 million, due mainly to higher product margins and strong merchandising results.
ADM's global milling operations had record
second-quarter results.
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$268 million to $188 million. Bioproducts results declined from $145 million to $43 million due to lower ethanol industry margins.
,QFUHDVHGHWKDQROH[SRUWVDQGUHFRUG86GULYing miles supported robust demand, but record
industry output resulted in margins lower than
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"In Oilseeds, good meal demand supported
strong North American soybean crushing results. And South American origination and
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SRUWQHWZRUN7KHVHFRPELQHGZLWKWKHÀH[ibility of our global crush plants, helped the
seeds team deliver another strong performance," said Luciano.
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increased $35 million to $198 million. Strong
soybean meal demand, combined with ample
global bean supplies, supported strong global
soy crush results. Large South American corn
and soybean harvests helped drive volumes
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port operations there. Lower margins and volumes driven by concerns about seed supply

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Oilseeds results in Asia for the quarter increased $13 million from the year-ago period,
mainly due to improved results from Wilmar.
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reported for the quarter includes a gain of $27
million in Agricultural Services related to purchasing the remaining equity interests in North
Star Shipping and MinMetal; a $6 million gain
in Corn Processing from the sale of the lactic
acid business; a $68 million gain in Oilseeds
Processing from the sale of port assets in Brazil to a new joint venture with Glencore; and
impairment charges totaling $31 million, primarily related to certain international Oilseeds
facilities.
"We've continued to advance our strategic
plan that's improving our ROIC and growing
our EVA. Among numerous other actions, we
closed the sale of our global chocolate business
to Cargill; we closed the Barcarena port transaction with Glencore in June; and we remain
on track to close both our Eaststarch transaction and the sale of our global cocoa business
later this year," said Luciano.

For more information, see Page 130.

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World Grain - September 2015

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