Summary
Archer-Daniels-Midland Company (ADM) filed its 2013 10-K on February 26, 2014, detailing a year of mixed results across its diverse agribusiness operations. The company experienced a slight decline in overall revenues, primarily attributed to lower commodity prices and sales volumes in its Agricultural Services segment, partly offset by stronger performance in its Corn Processing segment, driven by improved ethanol margins and higher volumes. Despite a challenging environment with tight crop supplies in North America due to drought, ADM demonstrated resilience through its global supply chain and diversified product portfolio. The company made significant strategic moves, including exploring the sale of its cocoa business and facing regulatory hurdles in its attempt to acquire GrainCorp. The filing also highlights substantial investments in property, plant, and equipment, alongside ongoing research and development efforts focused on improving processing efficiency and developing new bio-based products. ADM maintained a strong liquidity position and continued its commitment to returning capital to shareholders through dividends and share repurchases.
Financial Highlights
55 data points| Revenue | $89.80B |
| Cost of Revenue | $85.92B |
| Gross Profit | $3.89B |
| R&D Expenses | $59.00M |
| SG&A Expenses | $1.76B |
| Interest Expense | $413.00M |
| Net Income | $1.34B |
| EPS (Basic) | $2.03 |
| EPS (Diluted) | $2.02 |
| Shares Outstanding (Basic) | 661.00M |
| Shares Outstanding (Diluted) | 663.00M |
Key Highlights
- 1Revenues for the year ended December 31, 2013, were $89.8 billion, a slight decrease from $90.6 billion in 2012, impacted by lower average selling prices and volumes in Agricultural Services, partially offset by strong performance in Corn Processing, particularly ethanol.
- 2Operating profit from segments totaled $2.7 billion, a slight decrease from $2.77 billion in 2012, with significant one-time charges impacting comparability, including impairments on investments and assets.
- 3The company incurred a $155 million impairment charge related to its GrainCorp investment, following regulatory prohibition of its acquisition.
- 4Corn Processing segment operating profit saw a significant increase of 193% to $814 million, driven by improved ethanol margins and lower corn costs.
- 5Oilseeds Processing segment operating profit decreased by 9% to $1.47 billion, mainly due to weaker cocoa and soft seed results, although biodiesel margins improved.
- 6Agricultural Services segment operating profit declined by 51% to $380 million, impacted by lower origination volumes, reduced farmer selling, and an impairment charge on the GrainCorp investment.
- 7ADM maintained a strong financial position with $20.2 billion in shareholders' equity and $3.6 billion in cash, cash equivalents, and short-term marketable securities at year-end 2013, with a commitment to capital return through dividends and share repurchases.