2.8.2006: Meldung: Archer Daniels Midland Comp.: Record annual results

Archer Daniels Midland Company
4666 Faries ParkwayDecatur, Il 62526

August 1, 2006

ARCHER DANIELS MIDLAND REPORTS RECORD ANNUAL RESULTS

Decatur, IL — August 1, 2006 — Archer Daniels Midland (NYSE: ADM)

- Net earnings for the year ended June 30, 2006 increased 26% to $ 1.312 billion - $ 2.00 per share from $ 1.044 billion - $ 1.59 per share last year.
- Segment operating profit for the year increased 33% to $ 2.061 billion from $ 1.551 billion last year.

"ADM delivered its second consecutive year of record earnings" said CEO and President Patricia Woertz. "Credit goes to the people of ADM and the alignment of our strategy, global portfolio of assets and strong management team. We have good momentum going forward and are well positioned to capitalize on our opportunities for continued growth."

- Net earnings for the quarter more than doubled to $ 410 million - $ .62 per share from $ 195 million - $ .30 per share last year.
- Segment operating profit for the quarter increased 82% to $ 637 million from $ 351 million last year.
· Oilseeds Processing operating profit increased on improved market conditions in all geographic areas.
· Corn Processing operating profit increased due to improved ethanol and sweetener selling prices and volumes.
· Agricultural Services operating profit increased principally due to improved transportation results.
· Other segment operating profit declined primarily due to decreased results of Food & Feed Ingredients.

- Financial Highlights
(Amounts in thousands, except per share data and percentages)
THREE MONTHS ENDED TWELVE MONTHS ENDED
6/30/06 6/30/05 % CHANGE 6/30/06 6/30/05 % CHANGE
Net sales and other operating income $ 9,547,336 $ 9,423,702 1% $ 36,596,111 $ 35,943,810 2%
Segment operating profit $ 637,286 $ 350,996 82% $ 2,061,191 $ 1,550,940 33%
Net earnings $ 410,259 $ 195,484 110% $ 1,312,070 $ 1,044,385 26%
Earnings per share $ .62 $ .30 107% $ 2.00 $ 1.59 26%
Average number of shares outstanding 658,750 655,394 1% 656,287 656,123 -


- Strategic Progress
Woertz also noted that in line with the Company’s strategy to expand in areas of food, fuel, and industrial products, ADM announced in the fourth quarter:
· Selection of Cedar Rapids, Iowa site for ethanol expansion.
· Selection of Hazleton, Pennsylvania for a new cocoa plant.
· Two agreements to market other producers’ ethanol.
· Acquisition of Groupe Lysac, Inc., including biodegradable absorbent polymer technology.
· Expansion of Hamburg, Germany oil refinery.
· Plans to build first biodiesel plant in Brazil.

- Discussion of Operations
Net earnings for the year ended June 30, 2006 were $ 1.312 billion, or $ 2.00 per share, compared to $1.044 billion, or $ 1.59 per share, last year. Net earnings for the quarter ended June 30, 2006 were $ 410 million, or $ .62 per share, compared to $ 195 million, or $ .30 per share, last year.

Net earnings for the year ended June 30, 2006 include a $ 36 million tax credit related to the adjustment of state and federal income taxes, securities gains of $ 40 million ($ 25 million after tax), Brazilian transactional tax credits of $ 46 million ($30 million after tax), a $ 17 million ($ 11 million after tax) gain from the sale of long lived assets, a charge related to Accounting for Conditional Asset Retirement Obligations (FIN 47) of $ 15 million ($ 9 million after tax), asset impairment charges of $ 80 million ($ 50 million after tax) and a charge of $ 22 million related to costs associated with a citric acid plant shut down and an exit from the European animal feed business. Net earnings for the year ended June 30, 2005 include a gain of $ 114 million ($ 74 million after tax) from the sale of the Company’s direct interest in Tate & Lyle, an after tax gain of $ 45 million representing the Company’s equity share of the gain reported by its unconsolidated subsidiary, CIP, upon the sale of its interest in Tate & Lyle and asset impairment charges of $ 42 million ($ 26 million after tax).

Net earnings for the quarter ended June 30, 2006 include security gains of $ 12 million ($ 8 million after tax), a $ 17 million ($ 11 million after tax) gain from the sale of long lived assets, Brazilian transactional tax credits of $ 27 million ($18 million after tax), asset impairment charges of $ 44 million ($ 28 million after tax) and a FIN 47 charge of $ 15 million ($ 9 million after tax). Net earnings for the quarter ended June 30, 2005 include asset impairment charges of $ 40 million ($ 25 million after tax).

Segment operating profit increased $ 286 million to $ 637 million for the quarter and increased $ 510 million to $ 2.1 billion for the year.

Oilseeds Processing operating profit increased $ 121 million to $ 195 million for the quarter and increased $ 254 million to $ 598 million for the year as improved market conditions resulted in increased operating results in all geographic areas.


Corn Processing operating profit increased $ 169 million to $ 286 million for the quarter as Sweeteners and Starches earnings increased $ 20 million to $ 112 million and Bioproducts earnings increased $ 149 million to $ 174 million. For the fiscal year, Corn Processing operating profit increased $ 347 million to $ 877 million as Sweeteners and Starches earnings increased $ 160 million to $ 432 million and Bioproducts increased $ 187 million to $ 446 million. Increased starch, sweetener and ethanol selling prices and volumes contributed to the earnings improvements for both the quarter and fiscal year. Lower lysine selling prices negatively impacted Bioproducts results for the fiscal year. For the quarter, average net corn costs increased. For the year, net corn costs decreased, but were partially offset by higher energy costs.

Agricultural Services operating profits increased $ 15 million to $ 83 million for the quarter and increased $ 14 million to $ 275 million for the year principally due to improved operating results of transportation operations partially offset by a decline in global grain merchandising operations. In addition, fiscal year operating profits of the North American origination and export operations declined due to the negative impact of the hurricanes in the first half of the fiscal year.

Other segment operating profit declined $ 18 million to $ 73 million for the quarter due principally to a $ 40 million decline in Food and Feed Ingredients operating results, primarily due to reduced operating profits of the natural health and nutrition, wheat milling and cocoa operations, partially offset by a $ 21 million improvement in operating profit of the financial operations. For the year, Other segment operating profit declined $ 104 million to $ 310 million due to a decline in operating profit of the Food and Feed Ingredient businesses due principally to asset abandonment charges and reduced operating results of the natural health and nutrition, wheat milling and cocoa operations.

Significant components of Corporate results are as follows (in millions):

Three months ended Twelve months ended
June 30, June 30,
2006 2005 2006 2005

Gain on sale of securities $ – $ – $ 29 $ 159
LIFO income (charge) (1) (21) 12 114
Other (54) (63) (247) (308)
Total Corporate $ (55) $ (84) $ (206) $ (35)


Archer Daniels Midland
Page 4

Conference Call Information
Archer Daniels Midland will host a conference call and audio Web cast to discuss financial results and provide a Company update at 8:00 a.m. Central Daylight Time (CDT) on Tuesday, August 1, 2006. To listen by phone, dial 800-706-7741 or 617-614-3471; the access code is 69620120. Digital replay of the call will be available beginning on August 1, 2006 from 10:00 a.m. CDT and ending on August 8, 2006. To access this replay, dial 888-286-8010 or 617-801-6888 and enter access code: 45934305. To listen to the call via the Internet go to: http://www.admworld.com/webcast/. A replay of the Web cast will be available on the ADM World Website.

Archer Daniels Midland Company (ADM) is a world leader in agricultural processing and fermentation technology. ADM is one of the world"s largest processors of soybeans, corn, wheat and cocoa. ADM is also a leader in the production of soybean oil and meal, ethanol, corn sweeteners and flour. In addition, ADM produces value-added food and feed ingredients. Headquartered in Decatur, Illinois, ADM has over 26,000 employees, more than 250 processing plants and net sales for the fiscal year ended June 30, 2006 of $36.6 billion. Additional information can be found on ADM"s Website at http://www.admworld.com.

###

Contacts:
Brian Peterson Dwight Grimestad
Senior Vice President, Corporate Affairs Vice President, Investor Relations
217/424-5413 217/424-4586
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